Painful Lessons Learned: 37 Ways to Tenant Proof your Properties

No one is born a brilliant landlord or real estate investor. It’s a skill you learn. Boy, have I learned. Sometimes I just wanted the education to stop. But I didn’t quit. After a pity party, I stepped back and tried to figure out how to prevent another costly tenant nightmare from happening. Here’s what I do now…

After 35+ Buy and Holds and many flips, my philosophy has changed. Our mantra is, do it right the first time… even if it may cost a little bit more to make it last. 

1. Don’t be a slumlord. Tenants that are okay with things that are broken and mismatched are tenants that will break things. Set the tone and expectations while the house is being shown. Everything is tidy and works. Basically, invest to attract the best tenants and fix anything that is broken immediately, then figure out who is responsible and hold them accountable if needed. Go through this on your lease signing/tenant orientation. Deferred maintenance will eat your lunch because it’s cheaper to fix a small issue before it becomes a major one. Also, it helps keep those great tenants you carefully screened happy (and tenant turnover is one of the biggest landlording expenses).

2. Quality over cheap fixes. Start with hiring good labor that knows how to prepare a property for the long haul. If duct tape is their primary tool of choice, move on. Use licensed plumbers and electricians - it will protect your investment and will save you money in the long run. Every successful investor I know has learned this lesson the hard way. Have high standards, pay them well, buy them an occasional lunch, treat them with respect and always inspect the work prior to cutting a check.  I will write another post about how I figured out how to select and keep the right contractors vs. penny-pinching and having to babysit many contractors that cut corners, don’t show up, or do shoddy work which has to be fixed by someone that knows what they are doing. So… assuming you have the right team in place, what can you do to bulletproof your rentals?

3. Make decisions based on data. As part of my due diligence, I have an inspection done. This is a no-brainer for something that is on the MLS, but what about something at a tax sale, sheriff sale or wholesaling deal with no time to do a full pre-purchase inspection? If the property is off market, I do my repair estimate which is based on data of from the hundreds of rehabs we have done previously. I know to the penny how much a full bathroom will cost... as well as anything else that needs to be fixed. (If you don’t have experience in this area, get J. Scott’s book, Estimating Rehab Costs and ask folks at your local REIA about the local prices for each area. Have an experienced investor walk the property with you or spend the time and take a home inspector certification course online. They have all the videos so you know how to do a home inspection yourself.) I ALWAYS have an inspector give me a thorough inspection of the property either before (if possible) or after I buy it. This is a blueprint or roadmap for the asset. I may decide to fix everything... or not, but at least I know what I am dealing with and can make educated decisions based on data. It takes the mystery out of the investment which mitigates risk. If the numbers work and the location is right, we do a deal. We figure out the how afterward.

4. Research and Select Products before the job begins. Over time, my team and I have developed a spreadsheet used by EVERYONE that touches my properties sees which contains all of my products - colors, sizes, finishes with photos, prices and SKUs that can be bought almost exclusively at Home Depot. This was after 2 contractors bought gold door handles for the interior doors when everything in the house is brushed nickel. We limit property management issues by proactively replacing toilets, water heaters, update breaker boxes/wiring - things that commonly break down and are easier to just replace while we are rehabbing.

Here are my specific tenant proofing suggestions:

5. Floor coverings We never carpet unless it's a flip. It will cost so much more in the long run because with carpet you have to worry about pets, kids, smells, etc. We always tile if it's on a slab (it's a wood look tile that comes in long strips.... I worked out an amazing price from a local flooring store that blows the Big Box prices out of the water with better quality). It comes to be about $1.50 a square ft and my contractors charge the same to put down laminate or hardwood - $1.50 a square ft (or $3 total for flooring). Once it's down,  it doesn't need to be touched again for many years. Easy peasy!

However, do your research. Tile is not going to work in every market. You want to know what your customers want and balance that with your bullet proofing strategies!

Once you go tile or hardwood floors (with great sealer!) you will never go back. Scratches can be easily fixed with a spot sanded then freshened with a topcoat. Water and urine stains are less likely to be damaging. Use a waterborne finish that is catalyzed with cross-linkers that do provide a better bonded, tougher finish that is harder to scratch and harder to wear through. It tends to be more expensive, but it is still a fraction of the cost of re sanding a floor. This is not something to skimp on.

6. Toilet For rehabs, the toilet is ALWAYS replaced with a Cadet 3 which prevents phone calls about that landlord nightmare... "a running toilet.” Again, don't skimp on this. Tenants are informed that EVERYTHING is new so if there is a backup when the plumber comes, she'll figure out who caused it. Bad sewer lines = me, anything else = tenant! This is spelled out in the lease also.

7. Bathroom Windows  Remove bathroom windows that reside inside a shower enclosure. They almost always leak and can be a massive maintenance headache.

8. An Exhaust fan  (or in colorful plumber’s slang, “a fart fan”) for the bathroom. First, it's gross not to have one, and 2nd, you will save your bathroom from mold. We put in light/moisture sensing exhaust fans that turn on automatically when they sense any moisture. A little more pricey than a regular one but again, it will save in the long run.

9. Bathroom Paint Make sure your paint is semi and high gloss in the bathroom. Use a mold-killing primer to nip any issues before they can begin.

10. Tile  White subway tile for bathrooms that goes up about 46 inches (in case a drunk friend wants to pee on the wall.) Tile behind the toilet. Do not skim on tile - it’s worth it to have it properly installed (Hardie board behind it.) A strip of black trim to give it some detail.

11. The Tub  We never use plastic/fiberglass shower inserts. I just hate the way they look and I've seen people put holes in both the tubs and crack the walls of these. Instead for just a little more, we install iron tubs with tile that goes to the top of the ceiling. Again, white subway tile is used here.

12. Shower rods  We always install a fixed shower rod, the friction fit ones always fall down and ruin the walls. Home Depot rods cost about $12 and screw in on both sides.

13. Showerhead Single handle shower head means fewer parts to break.

14. Drain  Removing the pop-up drain from bathroom sinks and replacing it with a commercial grid drain.

15. Kitchen countertops We put in the same color granite countertops with a white subway tile backsplash in the kitchen. It looks good, clean and it will wear forever. We make sure that there is hardy board behind any tile surface that will get wet. (If you don't do a lot of business yet, put together a group of investors and make a buying group. Vendors love it and you will get freebies! Fellow investors love it because they can get great products at a discount. Only do this with vendors and products that you love or you will instantly lose credibility. For me, when I love a product, I become their biggest cheerleader! I was Yelping before it was a thing.)

16. Kitchen and bath flooring  Use tile on the floor in the kitchen and baths. Use a neutral tile, and if possible set it on a diagonal. We do this and it makes it look good for the same amount of money (my guys… your guys may charge you more. Check with them.)

17. Appliances  Look for sales and get matching appliances. I try to use stainless steel appliances in my rentals because doesn't really cost that much more if you shop for sales and it really sets the place apart from other units of that price point. Also, if possible, we always do a stainless microwave over the range for the hood. It's more functional and is about $50 more if we get it on sale. Rarely do we have units with dishwashers or garbage disposals unless they already come with the unit and there is a tenant already in there. (once we change tenants, it goes!) I may install dishwashers on higher-end rentals. If tenant would like to supply their own new garbage disposal, they must pay to have it installed by my handyman (directly) plus the cost of removing it once they leave. We do not service them and we make them sign an amendment to that effect. Never an icemaker if we are supplying refrigerators (that's an extra fee). Icemakers always break. My own kids have broken ours about 10x.

18. Kitchen Sinks  Go with stainless so you don't have to worry about porcelains stains/chips

19. Native plants outside  Stuff that can survive whether or not they are watered or maintained. This doesn't cost that much and will help the house look nice so you can attract better tenants. We explain to potential tenants that they are responsible for the upkeep of lawn and bushes but that we have designed landscaping so it is virtually maintenance free. Think wildflowers and other perennial plants. You can get these from local garden centers that specialize in native plants.

20. Locks We only use Landlord Locks so it takes my team 90 seconds to change locks between contractors, real estate agents, and tenants. We use passenger knobs with deadbolt locks so when my tenants lock themselves out they can't say, "someone kicked the door in! It's not my fault!" because they have to use a key to lock the door and they can't kick the lock open. 

21. Storm Doors  We remove storm doors unless they are brand new. Even then, we tell tenants that these are easily broken. If they break, we will just remove them and not replace so do your best to not break them. That is on our lease. 

22. Prehung solid core doors  We sourced these at a local lumber store that usually has them in stock. Or Home Depot but they don't stock them so they are ordered as soon as I get the house if we've got time. It's only a bit more money and tenants with anger management issues can't kick them in.

23. Door stoppers  Placed on the hinge and also a stopper on the baseboard. Home Depot has magnetic combo doorstop/hold open catches for self-closing entry doors. This prevents tenants and movers from jamming things to keep doors open.

24. Pexing the pipes  I’m a buy and hold investor and will be self-managing through my systems until I get to my lucky number 104. (That's my freedom number.)  Anything that keeps my properties free of maintenance for years to come is a winner. Cooper was the gold standard for piping a house at one time. We have a deal set up with our plumbers to pex the house once we get the walls open. Then we no longer have to worry about our cooper being stolen or the pipes freezing and bursting. These scenarios are MUCH MORE expensive than just replacing the pipes while we are rehabbing.

25. Use the same two colors throughout all the units. Find a good neutral in a satin finish (remember - it goes flat (NEVER!), eggshell, satin, semi-gloss, high gloss.)  The reason you use satin is that it is much more washable than flat or eggshell. Trim should be a glossy white so it can be easily washed. We use a popular grey paint and do the entire unit in this color except for the trim that gets white semi-gloss. These are at Home Depot and always available.

26. Caulk Tell your painters to fill in all cracks with caulk. It makes the unit more finished looking and keeps out pests. My workers know that is my biggest pet peeve, and my assistant is trained to go around and put blue tape on every crack. Everyone knows they will not get paid until this is buttoned up.

27. Correct Peeling Paint Nothing says slumlord quite like having peeling paint. Have them scrape off peeling paint and replace wood that is damaged. Again, tell your painters to go out and get a caulking gun and fill in ANY cracks. Make sure the house is painted an attractive color. I know a guy that painted his house bright orange because... sale. It took him awhile to rent the house out. We do most of our houses in white unless there is a compelling reason to go with another color.

28. Outside spigots  Make sure outside spigots work, or people will run hoses out the windows and leak water all over your floors (get over any idea that you can prevent them from using water outside by removing spigots; people are going to do what they need to do). Besides - they are paying for the water, right? You want them to water the lawn or any flowers they plant, right?

29. Cage all AC window units Ours are made by my handyman for $250 a pop. Find a welder who wants to make some money in the evenings or weekend to get a volume discount. Most of our units have HVAC but some have window units. We put the number of units with serial numbers in the leases. Tenants are responsible for what happens to them.

30. Cover the windows We use the cheapest regular white mini blinds that can be cut to fit at the big box store. Never do vertical - they always look bad especially if the tenant has dogs or kiddos.They seem cheap the first time but you'll forever be changing them out, adding slats, etc. This makes the house and neighborhood look terrible. This is spelled out in my lease as well. If you leave wallcoverings up to the tenants, you will get towels with Confederate flags, pot leaves, The Rolling Stones '80's Tour and my personal favorite, stained bed sheets. If they mess up my beautiful cheap blinds, it comes out of their security deposit.

31. Secure Doors  Install 4-inch screws in the latches of all exterior doors. Makes it a little tougher for them to get in and steal the copper in between tenants.

32. Wireless Alarm  We purchased a wireless alarm system that we place in our units when vacant.  The system is monitored for $15.00/month. So far it has worked for us. You can decide to offer it to tenants who can subscribe or not. We can also take it if they aren’t going to use it. You can log in online and change the address of the property. If tenants would like to install another alarm system, they are welcome to as long as we know the codes and the install doesn’t damage the unit.

33. Sensor Spotlight  We use sensor spotlights above each entrance for safety.

34. Use LED Lights They are good for the environment, never go out and will hopefully prevent the tenant from touching the fixtures.

35. Do Quarterly Inspections  Change Furnace Filters on these visits. Check under all sinks for leaks while there.

36. Leave Paint for Tenants Leave two quarts of paint in each property (one for the walls, one for the trim) with new small paint brushes on top in the plastic taped to the container.

37. Have a repository for tenant information, leases, photos of the property, maintenance videos, etc. We use Buildium for our property management. Tenants have access to the portal and are required to pay their rent through the system. We have videos on there about changing furnaces, preventing freezing pipes, how to wash a sink, etc… really anything that we expect and want them to do has a YouTube video associated with it. Also, we have the photos of the units pre-rental that are signed by the tenant on there with their move in/move out checklist on there. Everything that can be is inventoried with pictures, model #s and finish if possible. This way when there is an issue you can get a jump start on troubleshooting or ordering parts without having to go to the unit. It also allows you to talk the tenant through the issue easier if you know what is there. Or win in court if necessary.

What tenant proofing strategies do you use? Please share in the comment section 'cause the education never stops...