Dealing with a bad tenant is one of the worst parts of real estate investing. Bad attitudes, late rent, and damages can cause plenty of stress to give even the most level headed landlords a string of bad headaches.
One thoughtful writer had a clever idea on how to transfer skills used for illegal activities into something a bit more productive. It made me wonder, would gang members make good real estate investors?
Strong Leadership Structure
Some of the best landlords are not individuals. Property management teams can divide and conquer, with each team member focusing on one area of the business that is their own specialty or core competency.
Leaders make their way to the top after demonstrating strong, positive business results. The top leaders and investors make up a board of directors providing direction for the entire organization. This is a useful structure for a lot more than drug dealing gangs, it is similar to how most corporations are run today.
Strong Accounts Receivable Collection Practices
You won’t get by with past due payments if you owe money to a gang. While they hope on-time payments are the norm, some people miss the deadline regularly.
Most landlords deal with this through conventional means, such as an eviction. Gangs realize that repeat business is very valuable for their business model, so they encourage on time payments through other… non-traditional means.
Dealing with Trouble Clients
No matter what you do, some tenants are going to be trouble. They make a mess, cause damage, are noisy, and generally are unpleasant to deal with. Gangs have a solution for this as well.
While most landlords would never operate under the same principles as a street gang, there are some gems to learn even in the most unsavory situations.
Read the entire story at Madame Noire.