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Been a landlord for about 13 years. People here say it's hard - I disagree - it's often very easy, until suddenly it's not at breakneck speed. You'll have weeks
by lordland 9y ago
Been a landlord for about 13 years. People here say it's hard - I disagree - it's often very easy, until suddenly it's not at breakneck speed. You'll have weeks, sometimes months of easy and then suddenly a pipe will burst and it will consume 100% of your time. Or a furnace will fail. Or a dishwasher will explode.
You could probably figure that out on your own, though. If you still have interest in being landlord, here's something nobody will tell you: you will see people at their lowest, and you will see people at their worst.
I had a tenant argue with me over a door they kicked in from the inside, "Why should I have to pay for what I did when I was drunk!?" I had a tenant weep openly while she explained she had to break the lease because she had terminal cancer and was moving into hospice. I had a tenant cry while he explained that he lost his job and had to break the lease because he couldn't afford to house his family there anymore. A few months ago I had a very nice family move out of one of my rentals and the young wife teared up because she "hoped that one day they could buy the property from me." - The husband worked for a large corporation and had been unwillingly transferred out of state.
The nice family with perfect credit and references will turn out to be dirt-bags who wreck up the place. Sure, you've got that security deposit but you'll still spend hours doing the labor yourself or managing contractors.
My best tenants were a group of college kids who rented my biggest property out and left a year later with the place in better condition than when they moved in - they had no credit or references, but I had a good feeling about them.
The point is, is weighs you down, if you're a even a little bit kind-hearted. I started selling property off last year. I don't want to be a landlord anymore.
- grecy 9y agoThanks for a very helpful and informative post. If you don't mind me asking, did you make decent money?
- lordland 9y agoThat's a complicated question. If you're just looking to improve your monthly bottom line, rentals is probably not your best bet. I purchased distressed property in a growth market, buying up places I knew I could go into on weekends and fix up myself. After fixing them up and renting them out, I'd average between $200-$300 a month in profit (per property, after accounting for mortgage, taxes, and property maintenance.) If you work in IT (like I do), that's not exactly life-changing money, and as a function of time-in vs profit out, you'd probably be better off just doing some contract on the side.. at least, in the short term. In the long term, after holding on to a bunch of properties for 13 years, having other people pay my mortgages plus market appreciation, I've generated a ton of equity. Now that I'm cashing out, if you consider my time and my initial investment, I'm doing a great deal better than market. Had I have had the stomach to stay in and pay off those mortgages, I'd probably be doing even better. The price of my sanity, I guess.