Purchasing a rental property is a significant investment in both time and money. Every step is critical to success from finding the right financing to a great team of realtors, property inspectors and other specialists. After all this work, it is critical not to rush and find any tenant for your property. You may have luck on your side but it is entirely possible that you encounter the ‘tenant from hell’. It is very important to have your property empty and wait until your perfect customer comes along rather than rush to fill it because of your ongoing expenses which include the property taxes, insurance and mortgage. Here is a link as to some background checking every owner should do on a prospective tenant.
Read more: http://tinyurl.com/bs952gw
As for the tenant from hell scenario, please do not believe it cannot happen to you because it can and will if you are involved with investment real estate long enough.
For a frightening but what I believe to be true examples of some extreme tenants damaging property, please visit this link:
Please note that there are numerous tenants out there who are very cooperative and helpful in helping create a win win scenario. However, bad tenants often drive away the good ones who help you build equity as an investor.