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Everyone has heard at least one horror story of "the tenant from hell," so much, in fact, that dealing with renters is the biggest fear potential investors face, writes industry expert Paul Kondakos. But that threat can be easily mitigated. Owning an investment property is tantamount to owning a small business. To succeed in business, you have to ensure that you have a good client base that respects your business and pays bills on time. The same holds true for succeeding in real estate investing, you have to ensure that you have a tenant profile that respects the property and pays its rent on time. For most novice investors, the tenant profile is likely something that hasn't even crossed your mind, but it is actually one of the most important factors to determining your success. Some of it is tangible and some of it is intangible. As you become more experienced, you'll get a better feel of what makes a good tenant profile. There are two occasions when you have to pay particular attention to the tenant profile. The first is when you are purchasing a new investment property. Assessing the tenant profile has to be a consideration because a bad tenant profile can cost the novice investor time, stress and money. On a side note, for the more experienced investor a bad tenant profile isn't necessarily a bad thing as; (1) the experienced investor knows what they are getting into; (2) the property is usually priced accordingly, and (3) turning around the tenant profile can be a lucrative proposition.
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