About Tenants And Rent Collecting The success of your real estate investment depends on your ability to collect the rent due and on time. If you do not collect your rents on a steady basis, it can lead to a management headache and financial losses. As an owner of a rental property, it is important to find good tenants and keep a positive relationship with them.  Whether the property is a large apartment building or a small, two-family house, your decisions on how you manage the property can affect the financial outcome. When trying to find a tenant for your rental unit, it is very important to get detailed information about the tenant, such as their credit history, employment, and references.  Many times, landlords want to rent the apartment as fast as possible and do not verify the things mentioned above; they just collect the first month's rent and security and give the key. If a landlord does this, it can lead to a very risky situation and turn out to be a landlord's biggest nightmare if the tenant does not pay the rent. It is usually not the case that the perfect tenant exists, who pays the rent on the first of every month, and doesn't complain about something. Most tenants will pay the rent within the first five days or so. If the rent is not received by the tenth of the month, the landlord should send a friendly reminder or call the tenant directly.  Sometimes, the rent can honestly be paid late and the tenant will contact the landlord. If, however, the rent is consistently late, it can signal that the tenant may be a problem later. It is always a good gesture by the landlord to be understanding and not threaten any legal actions so fast. This could lead to a bad relationship with the tenant and cause greater problems later. Some tenants will always pay the rent by the tenth day of the month. This may be ok with the landlord if it is consistent. The financial loss incurred to evict a tenant will outweigh the willingness to accept the late rent. Nowadays, renters know the law and are aware that an eviction can last for months, sometimes, depending on the area of the country. Unfortunately, the courts give tenants protection to a great extent and even if a judgment is awarded to the landlord for back rent, the eviction process could cause the landlord to lose not weeks, but sometimes one, two or three months rent depending on how fast the local sheriffs can physically evict the tenant from the apartment. It is for this reason that a landlord should do a proper background check of each prospective tenant. If the landlord does have a problem with a tenant and must evict, the landlord should follow through with a small claims action for the back rent. The tenant may actually pay back the rent so that the judgment is not recorded on their credit report. Contributed by MS Jazzetti   Website: http://www.betterlifestyles.com