Are you comfortable as a landlord?

Question

John Thedford · Answer

I love being a landlord. I have been doing it four years. When you get enough income that you never have to worry about making ends meet that means freedom. Keep at it until you get to that point. The more rentals you get that cash flow the easier it becomes.

Michael Boyer · Answer

Neat topic Justin.

I would give it (self managing) a couple of more years to see if it's a good fit for your lifestyle and goals.

With not quite 2 years under your belt, you may still be enjoying the steepest part of the learning curve.

Maybe try and turn some of the worry in a positive direction for now.

Focus in on where the stress points are for you. Then instead of just worrying, try and develop systems or proactive steps to mitigate some of the problems.

Use outside resources, like BP, or your own insights to develop ideas.

For example, if prompt rent payments or tenant behaviors are an issue, look at your screening process, payment policies and tenant on-boarding more closely for potential improvements. Study up on what others are doing.

Or if building issues cause stress, look at your turn around process to see if you can get the main wear points of the unit replaced or repaired BEFORE the tenant moves in (be it leaky faucets, toilet flappers, or sticky windows). Then you may have fewer call backs or worries.

I am not sure it is ever quite 100% worry free if you are self managing, but it can be quite manageable for most people. Your scale (5 units or 50) and target market may also impact your stress level. Also, a given property may or may not lend itself to a worry free rental (based on its age, condition or even tenant profile it attracts).

Buy and hold rentals aren't for everyone. And outsourcing management might be another strategy short of an exit.

Best of luck!

Thomas S. · Answer

It gets easier as time passes and you learn that nothing in life regarding tenants is ever truly urgent for a landlord. Stressing over things you can not change doesn't stop them from happening. Everything always works out and money is not that important.

As long as landlords have to deal with tenants or PMs life will never be stress free. You simply learn to manage it like everything else in life.

Account Closed · Answer

I agree with Thomas S. It definitely gets easier over time.

I enjoy being a landlord. I don't spend much time worrying because it doesn't make me money. Solving problems, finding opportunities and managing relationships is the best / most profitable use of my time.  It really comes down to your attitude and outlook. Remember, this isn't an emergency room, nobody is going to die, everything is fixable. Landlording is mostly managing people. If you find the right people - tenants, vendors, and professional team, it makes everything much easier.

My guess is you are probably a "worrier" by nature, so being a landlord is just one more thing to "worry" about. If you can learn to not worry about things you can't control and bounce back quickly from setbacks, it will serve you well in this business. Put things in perspective and enjoy yourself!

David D Painter · Answer

Justin, I have been at this for years and still do not like being a landlord.  Of everything I do, it's the job I like the least.  I love repairing the houses! And I have ridiculously good tenants.  All send rent checks directly to my bank in a timely fashion each month. I have minimal contact with tenants often going a year or more with no contact from some. And still I'd rather be doing anything else.  Maybe some us never grow to actually like it. But for the time I put into it, the profits are worth it. Good luck!

Al Williamson · Answer

I love being a landlord.

Make sure you have good systems and stick to them. That takes the emotion out of sticking to your lease.

Train your tenants right.

Jeff B. · Answer

It took a while to master the art.  Maintenance aside, the tenant selection process was tough to master for me.  I knew the better I did at this, the easier it would be as a LL.

Under Tools->Fileplace->Forms  look for "Application Screening ChkList".  Use it to seed your own process or as is - - print one per application, fill-out your findings, sign, date and attach to the original application.

I operated a 6-plex and it took about 3-4 years to do this by rote, that's 24 successful screenings and maybe 3x that for reject/denials.

Suggestion:  this is 20/20 hind sight now, but start tracking your 'good vs bad' eggs and correlate to the verification list results you filed away.  You'll be able to improve on the list and/or see where the end results should have been predictable at screening time.

Clint E. · Answer

Not comfortable yet.  I am on year # 2.  Things I've had to do in the first year:  replace roof, replace AC, a lot of handyman work (none of these were expected).

I've learned a lot and I think this is what makes me more comfortable, knowing that I know how to deal with (some, not all) problems and fix them the right way.  Also, knowing I'm in it for the long run, that I'm on my way, that I have more to learn.