What happens if they wreck the place? – Property Rant 022

Property Rant 022

When something goes wrong deal with it quickly, ignore the excuses, ignore the blame because weeks and months can go by quickly, but most of all you have kept this one thing at the forefront of your mind and make sure you focus on this alone. Ignore right or wrong, focus on this one thing!

The truth of the matter is that you rarely have problems, Arlene, my wife, has her business, Ezytrac Property Management (https://www.ezytrac.co.uk) that manages over 1250 properties UK wide and across the portfolio things go wrong all the time but as a percentage of the total is less than 3% have any problems whatsoever, and the real problems are less than 1%. Of course, when they do go wrong it’s painful, and that’s why you need to know this one thing.

Video Transcription

Hey guys, Property Search… Think Gladfish. I’m Brett Alegre-Wood, and this is Property Rant.

So, today, what I want to talk about, what happens if a tenant rents the place? What’s the actual process, procedures? I’m not going to go into the minute detail. Bottom line is, this is where having a really good agent really comes into its own.

Number one, are all their docs in order? Because if you’re going to have to go and take this to court, then the reality is that judge is going to look at the documents, and if any of them’s out of order, he may throw it out of court. So, up front, you need things done properly.

Now, if they haven’t been properly, then you can be in a world of hurt. What we’re going to try and do is, and this is the key, when something goes wrong, deal with it straight away. You got to look at are they still in the property? How quickly can you get those people out? Because you don’t want them in. If they say they’re going to come around and fix it up and all that, you’ll hear all sorts of promises to delay and basically, even more, to blame other people.

So you really, this is where it comes down to management. This is when to get on top and stay on top. The trick is to get the property back into a lettable position, get that tenant out so you can get back into earning income again, yeah? If you’ve got some insurance, and obviously, a lot of companies offer insurance, so if this does happen, they will cover you. And, you know, that’s certainly recommended. It’s not an absolute necessity, but if you need that and, you know, you’re concerned about it, then just get that insurance.

So, the key here is getting on top of things and really managing them because, you know, months, weeks can go by really, really quickly with every excuse from the tenant who you know, did something. And look, if you get these really, you know, belligerent tenants, that they won’t move out. They’ll damage the place. They’re blaming you. They’re, you know, saying all these sorts of things. They’re making accusations. That’s where, really, you have to get the legal services involved and actually, you know, evict them. And, you know, you’ve got the various sections that you can get rid of them by, but you’ve got to lose the law that’s there because when you go in front of a judge, you have to have, you know, your i’s dotted and your t’s crossed.

And if you don’t, then the likelihood is that tenant’s going to enjoy free rent for even longer, so you just don’t want that. So the key is picking the agent right and make sure they’re competent. Make sure they’re docs are up to date. You know, and ask that question before you go with them, you know. “When was the last time your docs were updated? How do you update your docs?

Do you have a qualified agent?” Or whatever the local regulatory or whatever oversight body there is in the actual country you’re in, because when you start looking at those sort of things, those things add up.

And they don’t add up when you first take the thing, they add up after something happens, and when something’s happened, that’s when you want to know that actually everything’s all right. If you didn’t ask the question up front, then you can be left in a world of hurt, and you don’t want that at all.

Okay, guys, have a great day. Live with passion.

About the Author

Brett has over 20 years experience in all facets of property, he owns various companies centred around property and is the driving force behind the education and training at Gladfish. His companies have sold over £850 million in UK and London property and he manages over 1200 properties through his estate agency chain. Today he shares his time between UK, Australia and Singapore. He is married to Arlene and together they have 4 kids.

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