They are – but they are critical to your success as a rental property owner. Why? Because each state has it’s own take on what needs to be in them. And that means that you can’t just go to the office supply store and buy a book of contracts or download something that looks ok and be sure that you are.

The second biggest hurdle for new rental property owners is people skills. Don’t believe the “gurus” that tell you that you can be successful in this business without talking to tenants. You can’t. So the type of relationship you build with them is important to your success.

This is a follow up to the Fifth Element clip from yesterday. I’m engaged in a “spirited” negotiation regarding a situation where I happen to hold all the cards. And the other guy is posturing.

Face it, all businesses that deal with accounts receivable have uncollectable accounts. It’s simply a cost of doing business. And the rental property business is no different, and thankfully there’s an orderly, structured, and inexpensive process to deal with it. So stop being afraid of evictions. And stop letting it prevent you from owning rental property.

Rental real estate is a business, whether you have one unit or 100. So it’s important to think about it that way and treat it that way.