Rental Property Highs and Lows

[Shane Craig]

Generally speaking I'm a realist that leans more on the positive of most situations. However for the last month I have been getting my butt kicked( tenant complaints, costly repairs, and next month will be my highest vacancies I have ever had).  I understand life and business has it's seasons and it will get better soon. I'm still a fan of the rental business and love a lot about it but recently I don't want to even look at my phone because it's going to be more bad news. 

In your reply explain a bad rental situation or situations that all happen at once.  Explain if you could have prevented the situation or what you will do different in the future.  I hope this post will give new landlords a perspective on the business and hopefully it will help me with my pity party.

[Jonathan Greene]

It can always be worse @Shane Craig. I have a five-unit commercial strip mall in Westchester, NY that backs up on protected wetlands. 10-15 years ago, the town made us regrade the entire rear-drive area because they felt the run-off was impermissibly going into the edge of the wetlands. With other things the town dropped on us, it was $100,000. Five years later they made us do it again. We had lawyers, everything, nothing worked. I've also found three abandoned oil tanks on one property, with one leaking into a water source. Jackpot.

This is why I frown on all the advice out there for new investors to gather units, all with small margins. Because when it hits the fan, it hits all over and if reserves are low, it can be a disaster. If your units are solid and maintenance good over the years, you are just in a dip. It will all come back. Slow and steady.