It certainly is a sore spot for new property owners! A brand new tenancy has started and all ready the problems begin.
The incident may be very simple such as the tenant requesting that his/her rent cheque be held until the end of the week. Not a huge request and generally the owner will oblige. OK, the end of the week has come and now the tenant says "Can you just hang on until Monday?"
The owner cashes the cheque on Monday only to get it back on Friday as NSF. So now the owner goes to the tenant with this "bigger" problem. The excuses start such as "My dog needed to go to the Vet"., "My mother was in the hospital and I didn't get to the bank to deposit my cheque"...and so on.
If this sounds all too familiar, it is. The owner has made the big mistake of being "too nice". This will cost in the end, not only time, money but a poor future relationship with the tenant.
You can avoid all of these headaches by #1, being pro-active and submitting the N4 (an authorized Landlord/Tenant form to notify of possible eviction) to the tenant on the second day of rent not paid or just as soon as you receive a cheque back NSF.
Or #2, enlisting the services of an experienced and qualified Property Manager. Preventative maintenance does NOT cost, it only ensures the continuation of proper procedures and due diligence in protecting your valuable income property investment. Proper screening and background checks are no longer optional, they are part of a PM's most important processes to get you the "dream" tenant.
Remember it is called "Income" property not "Losses" Property. Don't spend needless money on legal services after a problem arises such as lawyers and paralegals. It will be litterly months before you are able to evict....and you can forget about recovering money once they leave your property. We are only talking a month of lost revenue if this process is handled correctly.
Check back for more important info for Landlords.......
