There are some prospective tenants who will sign a lease agreement in which they agree to pay a much higher rate than fair market value. Are they crazy???? No. Their reasoning is quite sound. They don’t care what the rent is because they don’t plan on paying it! They shop around for places and landlords with little or no credit or background screening and do whatever it takes to get moved in. They agree to pay the security deposit and first month’s rent in cash and make the transaction as painless as possible for the landlord. They even want to move in “right away!”
It all sounds wonderful until the landlord realizes a few months down the road that the cash they received up front is all they are going to see out of this tenant. Now the fun starts with the eviction process!
There Must be a Balance of Three Key Factors for Rental Success: Rental Rate, Vacancy Time, and Tenant Qualifications.
Unfortunately, we hear true stories like this all of the time. It’s usually a call from a landlord managing their own property looking for help with their messy situation. Remember that maximizing your property’s long-term value is a balance of three key factors: rental rate, vacancy time, and tenant qualifications. Keeping these three key factors in perfect tension ensures a high probability of success!