385: How to Save Your Rental Property When “Good” Tenants Turn BAD w/Chelsea Borden

Real Estate Rookie

BiggerPockets

Business, Education, How To, Entrepreneurship, Investing

4.7 • 1.8K Ratings

🗓️ 27 March 2024

⏱️ 42 minutes

🔗️ Recording | iTunes | RSS

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Summary

Could your rental property be occupied by bad tenants masquerading as good residents? After an incident that led to thousands in property damage, a complex insurance claim, and an eviction, today’s guest learned the importance of a watertight tenant screening process. And YOU can, too—without all the drama! Welcome back to the Real Estate Rookie podcast! Chelsea Borden owns four duplexes in Buffalo, New York—an investing market with a low barrier to entry, where new investors can achieve the one-percent rule with relative ease. What Chelsea learned, however, is that it only takes one bad tenant to disrupt an otherwise-smooth long-term rental operation. In this episode, she shares how a family friend caused $11,000 in damage. By acting swiftly, Chelsea was ultimately able to evict the tenant, rehab the property, and place a new tenant. Tune in as Chelsea shares her biggest lessons learned from this costly experience. You’ll learn the ins and outs of filing insurance claims, why you should require your tenants to carry renters insurance, and how to get the ball rolling when evicting a tenant. Chelsea also shares her best tips on home renovation projects, screening tenants, and homeowners insurance policies! In This Episode We Cover: How ONE bad tenant caused $11,000 in rental property damage Why you MUST make renters insurance a requirement for tenants How to start the process of evicting a tenant (and prevent delays!) The many benefits of investing in the Buffalo, New York market How to get high-quality tenants for your long-term rentals The most important factor in any successful home renovation project The insurance “pro tip” that could save you thousands of dollars And So Much More! Links from the Show Find an Agent Find a Lender Ashley's BiggerPockets Profile Ashley's Instagram Tony's BiggerPockets Profile Tony's Instagram Real Estate Rookie Facebook Group Join BiggerPockets for FREE Submit Your Real Estate Rookie Question! Apply to Be a Guest on the “Real Estate Rookie” Podcast The REAL Cost of Bad Tenants and “Cheap” Contractors (Mistakes to Avoid!) The $150K “Stolen” Rental Property and How to Avoid a Real Estate Scam Making $115K From a Nightmare First Deal (Cops, Evictions, and Break-Ins!) How to Protect Your Rental from Fires, Floods, Lawsuits, and Liability Check out more resources from this show on https://www.biggerpockets.com/blog/rookie-385 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email: advertise@biggerpockets.com Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	This is real estate rookie episode 385.
0:04.0	Have you ever had a terrible tenant that has left you paranoid?
0:09.0	My name is Ashley Kerr and welcome to the rookie podcast where every week three times a week we bring you the motivation,
0:15.9	inspiration and stories to get you started. If you have your own real estate horror story
0:21.1	share it with us at biggergerPockets.com.
0:24.0	So today, our guest is Chelsea Borden.
0:29.0	She is a rookie investor out of Buffalo, New York with four duplexes and today we are going to cover
0:35.5	$11,000 in property damages, insurance scams, and a phone call in the middle of
0:42.2	the night that all investors fear.
0:45.0	Chelsea, welcome to the show.
0:48.0	Thanks for having me.
0:49.0	Been a long time listener of all the bigger pockets shows and I was saying before we got
0:54.6	on the call it I feel like I know you at this point because you've been talking in
0:57.3	my year in the last few years. Well today everyone gets to know you and unfortunately it's a traumatic experience that has happened to you with a
1:06.3	tenant in one of your properties so take us back to that night when you initially got the phone call that most investors dread.
1:15.0	Yeah, so this was with the duplex that my husband had bought long before we have ever
1:20.6	met, but I've kind of taken the role of property manager on for the properties that we own.
1:26.5	And this tenant we've known personally, they were close to the family.
1:31.7	We've sat across the dinner table at
1:33.8	Thanksgiving from this person and they've been in this property for about four
1:37.8	years. Things started to seem like they were going downhill a little bit in the past year.
1:43.7	There was an 88 year old lady that lives below him that had gradually started
	...

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