The publics view on landlords and tenants

[Marcus Auerbach]

Yesterday I met the new tenants at their future home to hand them the keys and go over the operating basics for their home, gas, water, electric, filters etc. As we are standing outside wrapping up a neighbor lady comes over to introduce herself. I should mention that she is white and the tenats are black and this takes place in the Milwaukee suburbs. Her first question is if they have bought the home or if they are renting. As she finds out they are tenants she is visibly disappointed and says: oh what a shame. We have been here for 41 years. After awkward silence I step into the discussion and explain that they have kids in the school district and will probably also stay for a while. And they pay very good rent for a nice home. She seems to understand what she just said and wants to say something nice - hey if you need anything you can come over and get material from us, we have plenty of left over flooring and trim in our garage.... The tenants are great sports about it and thank her for the friendly offer.

Driving home I contemplate over what just happened. The neighbor lady had the usual stereotypes in her head: renters are bad, they are cheap and live like slobs, they neighborhood is going down the drain. Her second assumption was the the house is a ******** (I think it's okay to use this term casually in 2018) and they would rely on her leftover building materials to fix it up, because the landlord is a slumlord.

The facts are, the couple is hard working, both have long standing jobs, they make good money and try to raise good kids and care about the school district. They pay top dollar ($1475) for a a single family home that has been remodelled top to bottom and looks stunning. What makes these people worse than a white couple, who bought the home with an FHA mortgage and pay $1000 monthly for a home with a 40 year old kitchen?

This is why I am so aware of our role as investors for the publics opinion and our social responsibilities. We have it in our hands every day to shape the opinion of the public - for the better or worse, it's up to all of us! I should have invited the lady to take a quick look into the home to help her see a little beyond the stereotypes she may have heard. I will keep that in mind for next time!

[Thomas S.]

I have high standards that I expect my tenants to similarly reflect. I am not in business to change the opinions of the general public. 

Regrettably the public does not understand the necessity of so called "slumlords". For financial reasons they operate as necessary to serve the demographics of their chosen market.  If the public does not understand the value of investors providing that service too bad. If their tenants did not fit the level of service/housing they provide slum lords would not exist.

But unfortunately our business is  overrun with individuals that are basically mom and pop investors. They think that real estate is a passive investment and as a result do not perform regularly inspect of their properties. When it is suggested owners inspect on a quarterly bases even seasoned investors push back. 

What I think is important, what my tenants think is important, the public perception of tenants and landlords is irrelevant.