It’s okay, I’ll admit it. I have been a landlord 3 times. This is not my chosen occupation. You see, I’m not constitutionally set up to be a good landlord. I don’t like being mean, nor do I like making reminder calls for rent owed. I got into the landlord business because I had bought a house. My first camera at home with a tenant. The tenant was actually a model tenant… clean, tidy, considerate, and on time with rent payments. If this was my only experience, I would be excited to have houses that other people live in. But it was not like that. I became an owner two more times, and those experiences were markedly different from my first entry into the industry.

The second time, not once.Like many homeowners, I had purchased another home and had been unable to sell my current home.. Since I had a good tenant, I thought having two tenants would be great. It certainly beat having two house payments!

My prospective tenants told me that they had lived in military housing and had their house searched all the time. The inference is that they were very orderly people… or so I thought. I will never forget the day I went into the kitchen to check on my house. There was a narrow path barely visible through the piles of junk, papers, and rubbish on the floor. These tenants also didn’t like paying for trash, so they used my one-stall garage as a dumpster. There were literally pizza boxes up to the ceiling. I ended up paying the tenant to vacate the house.

Over the past 24 months in Grand Rapids, MI many homeowners are becoming reluctant homeowners. When you moved or bought another home before selling your home, this may be the only option to deal with the looming possibility of 2 large payments each month. Unfortunately, this solution sometimes creates unforeseen difficulties.

I have learned some lessons through these experiences that I can now pass on to clients who are investors or need to rent out their homes like I did. Taking these steps can reduce the risk of going from the frying pan of a tight financial situation to the hot fire of a house with tenants who are ruining it AND not paying you!

1. Consult our references.

• In my eagerness to collect rent, I did not ask for or check rental references. This is a big mistake. You can learn a lot from one call. Even if negative information is not shared, a reluctance to say anything about a tenant may be cause for further investigation.

2. Get a credit check

• This is very important. Past payment history will reflect what is likely to happen to you. If a tenant didn’t pay a previous landlord, there’s a high chance that he or she will eventually stop paying you. Sometimes a situation occurs that has a valid explanation and an exception can be made. But this should be done only after taking into account the whole picture, including previous rental history.

3. Take a walk in the neighborhood.

• If you are renting a house that is your primary residence and you intend to sell it, it may be wise to ask to move in or ask to see the house that the person who wants to rent your house currently lives in. Your upkeep there will reflect what you can expect in your home. While this shouldn’t be the only criteria, it can be helpful. If they refuse to clean up where they are now… well, it’s unlikely they’ll start when they move in.

4. Join the Rental Properties Association.

• In Grand Rapids, Michigan, this association is worth every penny of the approximately $200 annual fee. This organization provides landlords with access to legal advice, excellent lease forms, seminars and teachings, and the opportunity to network with other landlords. You can learn a lot from other people’s experiences and avoid a lot of heartache.

5. Be very clear and concise in the terms of your lease.

• A clearly and concisely written lease can save you a lot of complaints. Be clear about when a late fee applies and for how much. Be clear about how many tenants can live in the house and how many cars can be parked on the premises. Be clear about whether you will allow pets and what the fee will be if you have to repair damage. Be clear about why a security deposit will be lost.

6. Collect a security deposit.

• This should cover at least one month’s rent.

7. Detail the Current State of your Home WHEN the new tenant takes possession.

• Be sure to complete a detailed checklist for each room in your home, and ask your tenant to complete any problems they notice as well. This written document will certify the state of the home. Also, you may want to take pictures for posterity.

This 7-item checklist provides steps that can significantly reduce your risk of a bad experience…especially if you find yourself in the role of a reluctant landlord.

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