As I understand from what I’ve read here, the problem with doing this in an apartment building is that the tenants talk to each other & will think you’re weak-willed. But is there any disadvantage to doing it with a tenant living in a house?
Tenants talk, whether they are in SFHs or apartment buildings. If you pay a tenant to leave in any rental, they will brag to all their friends that they got you and that you are a sucker. Pretty soon, it will be all over town that HoldandBuy is a weak landlord. Your future tenants will know that you can’t enforce your lease and that you will pay them whenever they want to leave. Moreover, none of your tenants will ever need to pay the last month’s rent, because when they don’t pay, you’ll not only be ok with that - you’ll pay them to rip you off!!!
If you’re going to be in business, then act like you’re in business.
Good Luck,
Mike
ok, thanks for information. Just trying to learn everything I can before I get started.
HoldAndBuy - I don’t know how many properties you have. At first I thought PropertyManager was kind of exaggerating when he refers to tenants talking to each other. I thought - if I have only few properties, the risk of one tenant talking with another would be very slim. I live in a fairly big city.
But after a while it dawned on me… Even if you have only 1 property, PropertyManager’s advice would still apply. The tenant you are paying off will certainly talk with all his friends and you may get one of his friends as your next tenant. He will probably try to do the same thing his friend did and get some free rent and money out of you.
good luck!
jdias, I don’t own any yet. I was just wondering because some of the real estate books I’ve read have conflicting opinions about different landlord issues.
I agree it’s better to be safe than sorry.