Overwhelmed First-Time Landlord Seeking Advice

OP

Member since 2023 · 6 posts · 5 votes

Hi, and thank you for your response. I really appreciate you taking the time to offer advice. I've considered both, but here's where I'm hitting a wall:

Property manager: Financially, this seems like a significant chunk of the rental income going towards management fees. I'm not entirely sure if the cost outweighs the benefit, especially since the property itself isn't high-maintenance. It's more about my mental load than the actual workload.

Handyman: This is a logical suggestion. I find myself worrying about the quality of the work done and the tenant's satisfaction. Even with a handyman, I feel compelled to oversee or follow up on the work, which doesn't really alleviate my stress.

The core of my issue seems to be a mental one, rather than purely logistical. It's like I'm wired to anticipate issues and want to address them proactively. This mindset works well in my software engineering career, where being ahead of the problem is key. However, in the context of property management, it's causing me unnecessary stress.

How do you guys cope with the mental aspect of it? Is there a way to mentally 'disconnect' from the property while ensuring everything is handled responsibly?

V.G JasonPro Member

Investor · Member since 2022 · 3k+ posts · 3k+ votes

Which is it--you value your free time deeply or not? You said you did. Hire a PM, avoid liability and quit wasting your time. This isn't just a time saver, this is a liability barrier that's important.

4 Reply

OP

Member since 2023 · 6 posts · 5 votes

Again, good advice. I just don't think I can swallow the costs.

Chris SeveneyBusiness Member

Moderator

Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes

Quote from @MIke Brady:

Hi everyone,

I converted my former primary residence into a rental property. Financially, it's been a sound decision, but mentally, it's taking a toll on me. I constantly feel like I'm 'on call'. Even though my tenant is low-maintenance and the property itself rarely needs urgent attention, I can't seem to shake off the anxiety. It's like there's a background process in my mind always running, always alert for a possible call or issue that might arise.

I work remotely in a demanding job, and I value my free time deeply, especially given the flexibility of my profession. However, this constant mental load about the rental property is eating into my peace of mind. I'm always anticipating a problem, always planning for a scenario where I might have to drop everything and address an issue.

What strategies or tools do you seasoned landlords use to manage this kind of stress? Are there any mindset shifts or practical tips that can help me feel less like I'm perpetually 'on duty'? Is hiring a property management company the only way out, or are there other ways to manage these responsibilities effectively without it consuming my thoughts?

Any advice would be greatly appreciated. Looking forward to learning from your experiences.

Anything in life has a cost, it is usually either money or time. Right now you are paying for it in time vs. money. If you cannot afford the property manager then sell it. Life is too short.

This should be a lesson learned for others when mapping out a rental, not including property management costs in your analysis is a big mistake. Life happens, things change and now it appears you are "stuck". Best way to get unstuck is to sell".

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Alinda Saffell

Homeowner · Member since 2023 · 23 posts · 10 votes

I would agree that a great PM is a great investment. For years I had a quite good one, with RE chops and local access to some of my properties. She decided to retire (at over 90 years of age!) a few years ago. I wish I could find her like again! Although it's true most SFR are pretty placid, the times when they are not are definitely anxiety-inducing, I agree.

I have a handyman who is looking to do some investing, himself, and he's done repairs and maintenance here on my residence, and I trust him a lot. That's a real asset. So I do think that when you have a maintenance man (or team) that you have high confidence in, that soothes the anxiety. It's not quite enough to make up for self managing but, it's a good short-term move

BOTH of these can be hard to find and retain, though. I hope you can find both, or at least one, to help you out. I have family members who are in similar situations to yours and I really feel for you!

Michael Davila

Member since 2023 · 5 posts · 5 votes

Quote from @MIke Brady:

Hi everyone,

I converted my former primary residence into a rental property. Financially, it's been a sound decision, but mentally, it's taking a toll on me. I constantly feel like I'm 'on call'. Even though my tenant is low-maintenance and the property itself rarely needs urgent attention, I can't seem to shake off the anxiety. It's like there's a background process in my mind always running, always alert for a possible call or issue that might arise.

I work remotely in a demanding job, and I value my free time deeply, especially given the flexibility of my profession. However, this constant mental load about the rental property is eating into my peace of mind. I'm always anticipating a problem, always planning for a scenario where I might have to drop everything and address an issue.

What strategies or tools do you seasoned landlords use to manage this kind of stress? Are there any mindset shifts or practical tips that can help me feel less like I'm perpetually 'on duty'? Is hiring a property management company the only way out, or are there other ways to manage these responsibilities effectively without it consuming my thoughts?

Any advice would be greatly appreciated. Looking forward to learning from your experiences.

I came into my rental the same way you did. I would look into a property management software, that may be a cheaper option. You know how to handle software, and the software will notify you if they need something. You could look into mindset shifting techniques on YouTube, because what your talking about is really more about how you are wired lol. Truth is you have lived in homes for a long time, how many things can really go wrong? Not many, finding good tenants that pay on time is 90 percent of the battle.

3 Reply

OP

Member since 2023 · 6 posts · 5 votes

Quote from @Michael Davila:

What are some good options for this? I've done a little searching, but they only seem price competitive if I had more rentals.

OP

Member since 2023 · 6 posts · 5 votes

Quote from @Chris Seveney:

Anything in life has a cost, it is usually either money or time. Right now you are paying for it in time vs. money. If you cannot afford the property manager then sell it. Life is too short.

This should be a lesson learned for others when mapping out a rental, not including property management costs in your analysis is a big mistake. Life happens, things change and now it appears you are "stuck". Best way to get unstuck is to sell".

I think you're probably right. I thought it would be smart to diversify with RE, but I'd be way ahead if I just put the money in index funds. Way less stress too.

OP

Member since 2023 · 6 posts · 5 votes

Quote from @Alinda Saffell:

I would agree that a great PM is a great investment. For years I had a quite good one, with RE chops and local access to some of my properties. She decided to retire (at over 90 years of age!) a few years ago. I wish I could find her like again! Although it's true most SFR are pretty placid, the times when they are not are definitely anxiety-inducing, I agree.

I have a handyman who is looking to do some investing, himself, and he's done repairs and maintenance here on my residence, and I trust him a lot. That's a real asset. So I do think that when you have a maintenance man (or team) that you have high confidence in, that soothes the anxiety. It's not quite enough to make up for self managing but, it's a good short-term move

BOTH of these can be hard to find and retain, though. I hope you can find both, or at least one, to help you out. I have family members who are in similar situations to yours and I really feel for you!

Thank you! I hope you're able to find a great one again too!

Michael Davila

Member since 2023 · 5 posts · 5 votes

https://www.avail.co/education/articles/best-free-property-m...

Quote from @MIke Brady:

Quote from @Michael Davila:

What are some good options for this? I've done a little searching, but they only seem price competitive if I had more renta

Agreed, most of the platforms have there cost structures set up the same. Maybe the link below helps, but i feel we have access to the same research. Just remember your stress is worth something, You have to figure out what that is worth.

Walter Correia

Lender · Charlotte, NC · Member since 2015 · 124 posts · 22 votes

@MIke Brady

Hi Mike,

It’s hard being a first time homeowner. What makes it harder is Living in imagination and making assumptions can cause great distress to someone’s well being. Remove the emotional thinking out of it and have a solution to the problem. Hope this helps.

Tracey Lane

Los Angeles · Member since 2019 · 28 posts · 13 votes

I think learning how to do landlording well, and legally is empowering and may ease some of the anxiety. Put some systems into place with bookkeeping, maintenance, forms, etc. and learn what your state/county/city requires of landlords. Learn from all of the experience and resources here on BP. Doing that has really helped me have less worry and also have more pride and confidence in myself as a landlord.

It's possible too that landlording just isn't something suited to your disposition or life-stage, etc. Not meaning that to sound snarky AT-ALL! It's a job and not everyone is suited to every job.

All the best to you!

2 Reply

Alecia LovelessPro Member

Member since 2019 · 3k+ posts · 2k+ votes

@MIke Brady My handyman also does some property management. He’s been in the construction business for about 40 years now and knows everyone. He’s even trying to source new properties for me to buy from his other clients.

I would strongly recommend a property manager of some sort. Worst case scenario is they take 8% of your rent money and then at the end of the year you get to take that as a deduction on your taxes.

I have 7 properties with 25 units. I spend 2 hours per week driving to them all to make sure they’re neat and clean and well maintained. I might spend a total of 3 hours a month going to the bank when rent checks come in as my bank is 15 minutes away.

Sure I think about them some and the projects going on at them but it's not all consuming. I spend more time reading real estate books and watching podcasts and checking the MLS for new deals than worrying about my existing properties.

If your goal is to have a larger real estate portfolio then you have to figure out a solution to this situation. If you only have the one rental because it seemed like a good idea when you went to buy the new house then it might be time to consider selling it and investing your proceeds in a different type of asset. If you still want real estate there’s REITs or syndications. Or there’s tons of other options that aren’t real estate.

Chris Rich

Property Manager · Orlando, FL · Member since 2023 · 109 posts · 64 votes

Quote from @MIke Brady:

Again, good advice. I just don't think I can swallow the costs.

What market are you in? Based on our average rental rate across our portfolio, the 8% monthly fee comes out to less than $5 a day. Sure, the leasing fee is a healthy chunk (50-75% of the first month), but overall I do not think $150 off the rent is that costly. Like you said, the peace of mind / lack of stress is what you are searching for, it's tough to get rid of that if you are self-managing and it is something you are actively stressing about.

Ramez Qubain

Rental Property Investor · Raleigh, NC · Member since 2014 · 46 posts · 13 votes

I have a property that I am currently outsourcing its management to a property manager and was wondering if I can handle managing from afar. I signed up to rentredi for a test drive and saw an option where they offer an add on option, one for an emergency maintenance service for 15/unit/month and one for a full coordination service for 25 /unit/month. I think this might be the trick for solving your issue. If you are a pro member, rentredi is for free otherwise it is 5 per month I think.

Sean O'Dowd

Investor · Chicago Suburbs · Member since 2023 · 29 posts · 15 votes

Check out Hemlane. We've worked with them in the past for our properties. On their highest level package, they handle all tenant communication and maintenance

It's also exceptionally affordable compared to standard PM!

Michael SmytheBusiness Member

Real Estate Agent · Metro Detroit · Member since 2023 · 4k+ posts · 3k+ votes

Therapy or hire a PMC.

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Colleen F.Pro Member

Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes

@MIke Brady you received some good feedback but it is also about your mindset. If you can't turn off you need someone you are confident will handle calls for you, that is a PM. If you give it some time and have a good relationship with your tenant and clearly define an emergency you can do it on your own. Flooding, Fire , and loss of heat are the only real emergencies. Have them call you for those and send emails for the rest. Even the HVAC if you have a company signed up for service you should get that call after the fact.