The consequence and cost is non-negligible, though low-probability. I need some kind of protective measures, like helmet! I feel this is like random risk of falling off bike. It happens to a number of people. We can reduce the chance but not eliminate.

• Those tenants with small children are more protected by the law. I guess landlord is seen as more powerful and privileged? Greilyn de los Santos (BLVD realtor) said no the NJ court is strict on non-payment by any tenant and will issue eviction order within 3 weeks if tenant doesn’t pay on Tuesday where due date is Monday. Court will also send the sheriff to enforce eviction, according to her.
• If you as landlord has done anything slightly incorrect, it’s harder to get the court on your side.
  • For example, Queens landlords dare not rent out their basement, because it’s not legal and makes it harder to evict the tenants.
• Some owners have to pay the tenants a year’s rental to expel them.
• Other owners have to pay more as lawyer fee to get tenants out.
• Still other owners somehow can’t get the tenants out
• probability is low, but the loss is to the tune of 10k or 20k

How about the non-financial cost?

• time
• emotional stress? I feel if we are polite but firm, both sides suffer less.
• I feel it’s better to understand that the law was designed to protect the poor tenants who are unable to pay. It helps reduce the psychological pain.

— SG vs U.S… Singapore is probably much better. I believe landlord can file a police report. With sufficient evidence including lease agreement, the landlord should be able to vacate the unit and change the lock.

—-suggestions

• Must run credit check
• Keep renter’s SSN and driver license
• Agreed late payment penalty (beyond grace period) must be enforced.
• Once the tenant has one breach of contract, immediate filing to NJ court. Seize the upper hand (掌握主动权). Even if she pays up, we have authority to kick her out.
• Prefer long term lease even if at a discount
• join the landlord meet-up group or on-line forums to learn from others
• check background, including job history and current pay check
• Discriminate? I hated prejudice but to protect myself, I may need to discriminate against certain races, and favor students, immigrants (Mithun), white collar professionals etc
• Sign an official NJ rental contract (free download). I feel it’s better to formalize (and sign) the rental agreement and run it through a lawyer. See if the rental agreement is enforcible.
  • include a grace period of 14 days.
  • perhaps pay a lawyer to use her letterhead
  • pre-arrange with lawyer to speed up the eviction process. Ray of 100 Hillside Ave said it took only 2M for the court to give owner the permission to remove the belongings and change lock.
• It may help to engage agents, provided they work hard to reduce my risk.
• collect 3M (1.5M is normal) deposits if you feel the tenant is questionable. After probation, return some when the tenant proves to be reliable.