I once owned a dozen and a half properties, and I lost them all. I can blame ex-girlfriends easy enough, or shyster real estate opportunists like the frequently bankrupt Mike Westford, but in truth, I only have myself to blame, and in many ways thanks to my poor choice in renters.Here's some "wrong" ways to accept tenants:
1– Always, always, always get (and review) credit reports.
2 – Don't accept the sob stories. Everybody has one, and half the time you'll lose to the tune of $30,000.
3 – Don't take any excuses on credit reports. I've seen them, and made the very same unfounded excuses myself.
4 – Never, ever, ever be seduced by seduction. If you're up for renting to credit-dejected whores or strippers, it might work, but even still you're likely to face a horrible, terrible end.
5– Don't ever see the "Section-8" or subsidized housing allowance as any sort of creditworthiness. If anything, from my experience, these things detract. These tenants don't pay the rent, so they don't recognize the value.
6 – Never take periods of cash, not even six-month advance rent, in lieu of credit-worthiness. Trust me, I've been burned on this one.
7 – Don't accept referrals from other renters, unless they're willing to be co-signors. I've been burned to hell on that one too.