Thrifty vs Cheap and Landlord vs Slumlord

"Sticks and stones may break my bones but words will never hurt me." Ahhh the classic retort hurled back at bullies and siblings alike that most of us can remember from our childhoods. The phrase gifted to us children by adults to de-escalate, but more often than not was simply used to taunt back. Personally, if I ever heard that particular phrase from one of my brothers I would catch him and repeatedly hit him with said stick or stone while mocking him with the same phrase in a whiney voice. But that’s how older brothers assert their dominance right???

Unfortunately most of us know that the saying simply isn’t true. Most people have these things called feelings that can be hurt by careless words or phrases. And although some of us may be accused of being emotionless robots, unless you are a sociopath, the things people say can and will impact you. As a landlord, you have to have some thick skin so I wanted to address these four labels so you can have an intelligent response to someone who makes a backhanded comment (assuming you cannot just beat them with a stick).

Thrifty vs Cheap

Thrifty means "using money or other resources carefully and not wastefully." Positive words you can associate thrifty with are prudent, economical, and frugal however, more often than not thrifty is meant with a negative connotation like cheap or cut rate. Nobody likes being called cheap and as a landlord you don’t want to be cheap-you want to be thrifty.

Saving money and keeping expenses low are important in all aspects of life but especially when it comes to big investments like houses. As a landlord or homeowner you will have to straddle a line between the omnipresent want vs need argument. You have to keep the property safe and maintained but you also don’t need to install golden shower fixtures. You also need to understand that tenants simply will not treat your rental like they would if they owned it. There are many very conscientious renters out there but when the rubber meets the road, people focus on #1 first. At the same time, if you put in the cheapest materials, things will break down faster causing more money in the long run.

This is where being thrifty comes into play. A cheap landlord goes to Home Depot and buys the cheapest product to fix an issue without a second thought but a thrifty landlord looks at the options before deciding. Maybe the best option is actually a little more expensive because it will last longer when put up to the test of renters. Being thrifty is about being intelligent where the money goes when it must be spent. So next time a renter or a friend or a spouse accuses you of being cheap, calmly explain that you are in fact thrifty and that money saved in one aspect can go towards something else that would otherwise have been ignored.

Landlord vs Slumlord

Being called a slumlord by a friend as you walk in the door late because you were fixing a toilet or dealing with a tenant problem is going to happen to you. Just talking about your rental property in casual conversation will usually get the term thrown at you while they laugh and think nothing of it. This happened to me a lot starting out and at first I laughed along with them. But as time wore on and I put more and more effort into my first property it really started to get to me. Sure, the place I was fixing up wasn’t in the best area and it certainly wasn’t going to get put on the cover of Good Housekeeping but there was a lot of blood, sweat, and money put into this project. I made sure all the units were functional and safe and I even lived in one myself. I don’t care much what other people think generally but when you are being compared to a criminal (yes slum lording is illegal) it starts to get to you.

I had one particular boss that probably mentioned the term every single day in passing conversation and that was finally my breaking point. I took him aside and in no uncertain words told him to shut his mouth. When I explained to him how much work I put into this and that I didn’t appreciate being called a slumlord even though he said it jokingly, he finally got it and stopped.

Most of the time friends and family call you slumlord in a jocular manner and don’t mean anything by it but you should take the time to educate them that you are, in fact, not a slumlord. People fear what they don’t understand so a lot of the time this comment comes from a place of fear or jealousy. Once you understand that, you can go back to letting it slide off your back when somebody roars with laughter as they call you a slumlord for the umpteenth time. The other option is to take a fat stack of bills out of your wallet and smack them across the face with it and imply it’s all the money you are making from your rentals. On second thought, that may reinforce the stereotype…your call.

Most tenants will think of you as the evil landlord that just collects money and gets richer off their rent checks. You and I both know that there are so many costs that go into rental property that most of the money they give you is spoken for before it hits your bank account. To combat this, be prompt with repair requests but keep in mind the thrifty vs cheap mindset. Be courteous but firm to your tenants. They will walk all over you if you let them but if they see you are fair and honest, they will most likely reciprocate. You can’t control what they say about you behind your back but if they don’t pay, you certainly have control over whether they continue to live there.

Like all endeavors in life, as long as you do business ethically and with a good heart, at the very least you will be able to look yourself in the mirror each day. Let people think what they will. Educate them when they seem willing to listen, otherwise go on with your business and ignore the haters.