This question is open and i will not fire any judgements to any replies ( am working on humble ).
Does anyone have any rule of thumb guide when dealing with prospective renters/wrappees and the prices they charge?
I have prospective tenants who are having a rough time with lifes rolls, but….who are willing to pay a high price for some accommodation which i was aiming at a different market, i have mixed feelings.
Any input guys?[eh]
lifexperience
Hi lifeexperience. Are you saying that you have prospective tenants that don’t quite match your intended tenant profile, and that they have come up a bit short on your investigations, so you are worried about letting to them? I am a bit confused re what you are asking us??
CDCastleDreamer
Not quite CD,
I’ll try againDoes anyone wonder if they are taking advantage of someones desperate circumstances?
In this particular case i am charging a higher amount than market, it will only be short term and i am helping them build a rental reference. So i have just decided that i am ok with the deal.
I do know that a grossly overpriced 30 year wrap deal was their other option, which would have been disastrous for them long term.
Do other investors shoulder a certain amount of responsibility for doing the right thing.
Or is it CASH, CASH, CASH.
I don’t know, maybe i’m a bit soft?[glum2]
Who would you choose, good tenants with great history OR potential risky tenants in desperate circumstances?
( Assuming you could afford to take the risk)
lifexperience
“Who would you choose, good tenants with great history OR potential risky tenants in desperate circumstances?”
Well theres two points to consider here. The fiirst is risk control – are the risky tenants likly to stop payting rent and you have to carry the house for a month? Do they trash places? If they do the above then you have to factor that into the price of rent you are charging.
The second factor is do you actually want the hassels??? Too me, No. I don’t want to have the hassel of having to go to court to kick people out, or have a fight over the bond – I just want my houses to sit there, and make me money.
But really it is a matter of taste (for want of a better word)
Rgds.
Lucifer_auThanks for input Lucifer
lifexperience
mmm. My only thought was “Make sure you have tenants insurance”!
Good Luck.
Integrity works both ways. If you are not comfortabe with them as tennants then be less comfortable with them as purchasers under a terms contract. You seem to have a problem with wraps, if that i s the case stick within what you are comfortable with. Cash is cash and it ONLY cash, nothing else.
I would you choose, good tenants with great history OVER potential risky tenants in desperate circumstances?Dave
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