Want to get tenants to stick around longer and respect your house more? Joe Lieber tells us his exact strategy in this FlipNerd.com Expert Tip. Don’t miss it!
Mike: Hey, it’s Mike Hambright from FlipNerd.com and we have a quick VIP tip to share with you from Joe Lieber, who’s going to share a tip on how to get your tenants vested in your property.
Joe: Mike, for years and years I would always chase rent. Always. You know, it would be the 10th, and I’d be calling, “Well, do you have your rent payment yet?” The 15th, “Do you have your rent payment yet?” And before you know it, “Should I give them a three week notice? Should I evict them? What should I do? Oh, I’m scared. I’m nervous.”
I had to stop the madness, Mike. So I figured out the answer. It was vesting them to the property. I had to figure out how to get them vested. Nobody wanted to pay unless they were vested. I figured out two ways to vest a tenant to a property — either through money or through sweat equity.
So I do a little bit of both. I do rent-to-owns in my business. I switched from a rental business to a rent-to-own business in order to get my tenants vested. I leave things undone. Mike, I won’t paint the house. I won’t change the carpet. I won’t replace that countertop or cut the grass. I get them in there. I make them do it. And by doing that blood, sweat and tears work, I can promise you they’re going to pay me next month.
Mike: That’s awesome. Awesome.
Joe: And they do.
Joe: That’s how I was able to turbo-charge my business, to get my rents in quicker, faster and get my tenants vested in the properties.
Mike: They’re committed.
Joe: They’re committed.
Joe: You have to get them committed.
Joe: And I also charge them a little bit of a down payment too, just to have them have a little bit of cash in the game. Or if you want to deliver a nice product to somebody, we do that too. I can deliver a nice product to you. It’s going to be $5,000 down, which vests them to the property once again. So you can do a lot of cash down, or a little cash down, a lot of work, but you have to figure out a way to get them vested. That’s how you’re going to get paid every month. That’s my quick tip of the day.
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Mike: Please note the views and opinions expressed by the individuals in this program do not necessarily reflect those of FlipNerd.com or any of its partners, advertisers or affiliates. Please consult professionals before making any investment or tax decisions, as real estate investing can be risky.