One of the strategies in our quest to achieve Eventual Financial Stability is the owning and managing of rental property.
In addition to the office space downstairs, we have a triplex. It's working well for us. Most of the time.
I had a phone call awhile back from one of the tenants telling me that his rent cheque had bounced. For the second time. In a row.
"This can't keep happening."
"Well. It's not my fault. The money was in the bank on the first but you didn't cash the cheque..." So it went to pay the VISA bill.
Next time we have a prospective tenant, I want to add a little test to the application.
- Money used to pay for one thing can be used to pay for something else at the same time.
- If the landlord doesn't cash the cheque on the day it's due, you get to live rent-free for that month.
If the possible tenant answers "Yeah, totally," to either, we'll know to keep looking.