My Liquid Fund. How I Learned to Embrace Late Fees and Become a Better

My Liquid Fund. How I Learned to Embrace Late Fees and Become a Better Landlord.

     There is always a learning curve for a new landlord. For me, the most important part of the process was learning not to take the actions of my tenants personally. If there was a complaint or issue it was my job to evaluate it and respond appropriately. Some tenants complain a lot and cause many issues. Most don’t. Those who do are not usually attacking you—it’s just their nature.

     My most frequent encounters with tenants has been over late rent. At first, when I had only a few units, with accompanying mortgage payments due each month, late payment of rent could be more than a trivial inconvenience. There were times I found myself resenting my tenants for putting me in an uncomfortable situation, especially those who paid late repeatedly.

      I recognized that if I was going to flourish (or survive) as a landlord I had to find a way to control my reaction to my tenants’ behavior, to not take it personally, and to get more enjoyment from the process. My solution to the late rent problem was to create my liquid fund.

      All late fees which I collected were allocated to my liquid fund. I had recently discovered the joy of single malt whisky. The liquid fund was used (and is still used) to purchase new bottles to add to my collection. As my portfolio of rental properties has grown it is a rare month when I do not collect late fees. Some months the amount collected is significant. Now, I don’t worry much about late fees. I send the appropriate notices and almost look forward to the late fees and the purchases I will make with them. My tenants have made it easy to sample some fine whiskies.

      I have found this has carried over to other aspects of my landlord business. I don’t dwell on the issues that arise. I evaluate them and address them. There is much less stress and much more enjoyment.

      What do you do to make landlording more enjoyable for you?

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