subject: Help Landlords Deal With Tenants Less Painfully [print this page] Dealing with tenant buyers can actually be a less painful. If you've carefully screened your potential buyers and narrowed the pool down to the best of the best, you will have little difficulty helping them to close on a house. Of course, there is some paperwork involved in the process. Fortunately, keeping track of that paperwork is not particularly burdensome.
You would typically only keep a few files for records, specifically, the land contract and basic information. You business should maintain files on active tenants and past tenants, and can easily transfer information from one file to the next.
For organizational purposes, it is a good idea to maintain a 12-month calendar which depicts how properties are rotating. In other words, you can see where it stands throughout the year. Faithful record-keeping in this area will pay handsome dividends in the end. The more information you have at your fingertips, the better your planning will be.
It's also a good idea to issue monthly reports. That way, you can keep track of which tenant buyers need to be contacted. Time may fly for the tenant, so it's important that you get a handle on when each tenant should be ready to close on a house. These reports enable you to keep track of how each individual tenant is progressing-for instance, whether he or she needs to open a line of credit.
The closer a tenant is to a prospective closing date; the more you should be contacting that tenant. For instance, when the potential property closing date is 12 months away, there is little need for frequent contact. However, when the closing date is 6 months away, more frequent contact can be expected.
The monthly reports can also help you to keep an eye on cash flow. If you know when to expect your money, you can plan accordingly. The more comprehensive your records are in this case, the better off your company will be.
Certainly, you don't have to keep exhaustive records when dealing with tenant buyers. The process of buying homes, placing tenant buyers in those homes, and then closing the deal is fairly straightforward. However, some record-keeping is essential to ensure that the entire process runs smoothly.
With just a little bit of effort, you can ensure that your records are up-to-date, meaningful, and complete. And you, your tenant buyers, and your lenders will all be better off as a result.
