Obviously, getting tenants is a prerequisite for making money from your rental property. However, getting just any tenant does not guarantee your investment.
If you get bad tenants, you run the risk of your rent not being paid on time while repayment for loan and maintenance costs being accumulated.
Additionally, depending on how bad your tenants are, your rental property might get more damaged that normal use.
If you have a really bad tenant, you might even have to deal with an eviction.
Today I will discuss the risk of rent being unpaid and how to eschew the risk.
If you own investment real estate, there are expenses you have to pay monthly.
・Payment of administrative expenses · repair and maintenance.
・Monthly repayment for loan
If there is rent income properly every month
you can pay the above cost from the rent, but once the rent is unpaid your income statement will become negative.
How to deal with unpaid rent ?