Talk Me Out of Becoming a Landlord

[varmint]

We've simply outgrown the current house. Also thinking of retiring sometime in the next 15-20 years, looking for the dream home. Found a property just barely within my range. Nice house on 20 acres with it's own beach. Should be heaven.

but it comes with two other cabins and tenants.




i'm talking it over with my broker, lawyer and a ton of unsolicited advice from the in-laws. what does the pelican community think?

[HardDrive]

It's all about finding good tenants, rock solid lease papers, and very realistic idea about just how much maintenance goes into keeping 3 homes functional.

[varmint]

the tenants have been there forever apparently. producing about $1800 a month, after insurance and maintenance i'm not sure what the profit would be. having a contractor friend look it over next week.


also, all my bonds are cashing in and i have to do something with the money.

[john70t]

1). Some states have very strong tenants rights, with restrictions on rent increases.
(I'm on the LL side and endured my share but fully admit the serious BS goes both ways)
They could be driving the current owner mad and he just wants to escape.
There could be federally "protected class" issues involved, which will cost you a big buck in legal to start.

2). The land rights have just been sold. The oil derricks bought from somewhere in backwoods russia will soon be installed next door and start side drilling 24/7.

3). Mold, asbestos, and termites abound. Nuke the site from outer space to be sure.

4). Good 'ol Charlie's nephew has been used to borrowing a few bucks or a car at night from the old LL.

Are ya talked out of it yet?

[M.D. Holloway]

ok, here goes...don't be a landlord. The hassles will never end and the added income won't be enough to offset the massive amount of time and bullshyt you will have to put up with...

[Bugsinrugs]

I would rather not be a landlord but,,,,,,, I remind myself that my tenants are paying for my properties. At the end of the line it's like a savings account that someone else put money into.
Bottom line is, it's a job plain and simple.

[LWJ]

Being a land lord is great. I have done it for decades. PLEASE. DONT LIVE NEAR THE TENANTS! This is a business relationship. Keep it that way. Pass.

[creaturecat]

squatter-type cabins?
legally conforming? within view of your abode? nice tenants?
lotta factors to consider, for sure.
nice source of income - as well as providing someone with shelter, given an acceptable situation.

[Mike80911]

I won't try to talk you out of it. If you think it will work for you then do it. But with that said I just sold my rental property after my so called best friend moved out and left quite a mess behind almost $40,000 in damages. I will admit I was not checking on the property as I trusted him to not screw me. I had the property for 30 years had 3 different tenants the other 2 were great paid the rent on time and never made a mess. Just a couple of pics to get an idea.

[john70t]

On the plus side:
-15-20 years is a long ways off.
-By then, the 15yr fixed at today's low rates will have paid most of it off.
-Property values may increase or you'll get really good at fishing during the apocalypse.
-Property taxes may be capped and you'll both move into something you can afford on retirement pay.
-Current tenants will probably be long gone, and you'll have the choich of renting either of the other two houses or using them as a dog house or bordello.
-A little tree landscaping and fencing and reminding so your tenants will know not to enter the kill zone.
-Your new tenants may actually turn out to be decent people.

[sc_rufctr]

Being a landlord is fine but you must run it as a business. It's not and never is personal. You'll get used to it and when you do you'll ask yourself why you didn't do it sooner.
New landlords often get all wrapped up in the personal affairs of their tenants and end up in a mess so don't do it.

My worst story...

I few years ago I had a tenant that had just separated from her husband of 12 years move into a house I own.
She, 2 kids, the new boyfriend and a Golden Labrador.

All went well to start with but then I got a phone call in the middle of the night. It was my new tenant. Her ex husband had shown up at the house, kicked the front door in and punched the new boy friend in the face.
She only called me because she wanted the door fixed and hadn't called the cops so I did. She later complained I shouldn't have done that because her ex husband is now in trouble with the law!
It got complicated after this... Didn't want her ex to pay for the front door, late on the rent, didn't clean up the dog poo in the back yard etc.
So I didn't renew her lease. Did I feel bad? No!

[dad911]

Best story was when I evicted tenants, I get a call in the middle of the night two weeks later that they were having electrical problems, breaker hot, and were afraid of fire.... Yes, after a sheriff escorted them out, they moved back in!

[john70t]

Originally Posted by sc_rufctr

My worst story...

My worst story was an "inexpensive" condo...in what should have been an upcoming area and a good investment.
-My very first home. Freedom from maintenance. Free to travel the globe. No worries. Finally bought in my thirties and coming of adulthood. I lived there for several years.
-Before moving in I had to take the current tenants (couple young punks) to court twice for non-payment of rent after cordially introducing myself and giving letters of authority.
-Moving in there was nothing but trouble. Neighbors downstairs trashed the grounds with McD bags on a daily basis. Nothing like explicit rap at 3am with children singing along in a cloud of pot smoke. It became a un-monitored daycare at one point. Couldn't hear my own tv.
-"This too shall pass" I believed.
-I spent money and fixed the place up real nice.
-Roof was leaking. Fixed and leaked again. Why? Because the maintenance company was intentionally putting holes in the roof. Dripping walls and sagging ceilings.
-The initial Association President/developer/majority owner didn't care (who was the seller of this apartment building conversion).
-All the owners didn't receive any statements for two and a half years. I'm surrounded by inept zombies. WTF.
-They didn't care and then they suddenly got super pissed.
-It appeared to be a complex scam of delay tactics: Developer didn't pay any dues, maintenance company(supposed to be fired) still took all dues but didn't do any actual work, maintenance company instead did work on developer's properties.
-Shut-off notices began appearing on the front door and the developer's properties apparently were under the building insurance policy.
Developer was paying himself with wire transfers.
-How much more info is needed to explain how many various laws were broken? -Blame it all on "missing paperwork" and carry on.
-Lawsuits and unanimous votes followed to change this but couldn't. Obtuse racial bias favoring grand larceny, and negation of all state corporate laws and property by-laws was overruled by the court system. It was obvious. A mockery of the court system as a totality and a mockery of justice.
-Inept zombies turned out to be back-stabbing lying completely inept zombies against their own pocketbooks. Oh well.
-..........Moved out...............
-Rented to a tough female couple at well below market rates and bent over backwards. Dirty pigs. We were actually on good terms. They ended up threatening me with EPA and CDC cleanup because the animals downstairs smoked. I pulled carpet and sealed the perimeter a couple times but that wasn't enough. "Ok you can break lease anytime and move immediately". They finally did.
-Repairs. Next.
-Rented it to a nice couple. Girl was at least. Man had drunk temper and put holes in walls.
-Repairs. Next.
-......Got decent management company............
-Rented to two young men. One got sever work injury and other put holes in walls. No explanation why. Not collectable for either.
-Repairs. Next.
-Current tenant for years is nice younger baptist man who started out with hardship. He finally got great job and doing well. I could raise rent by hundreds probably but why change a good thing. If it works for both parties, don't mess with it.

The other place:
Locked out again and again. Drains clogged by hair. Usual stuff but pretty minimal.
Oh. And more holes in the walls by a previously upright respectable citizen.
(but at this point monkey roll boy ain't got squat on my drywall ninja skillz.)

As a LL you gotta roll with the punches sometimes...


Otherwise no problems and my tenants usually stay on for years.
1). I'm on site regularly and responsive to any problems. I am their employee. Legally they own the place temporarily.
2). Fixing things up nice means added property resale value.
3) I keep the place nice as if I lived there. I work hard and show them to their face.
4). I don't charge maximum rent or gouge.
5). Everyone gets along. Dammit.
6). I expect rent on time. Always. Lest I start talking about my stress hemorrhoid complications again. Like last time.

[Bill Douglas]

I enjoy being a landlord. MUCH better than working as a computer tech at a bank or at Defense. As a landlord you get to choose who you have as tenants. Quite different than some of the arseholes I've had to work with over the years.

Easiest money I've ever made.

[varmint]

The buildings are real houses. Twenty years old and well made at first glance, but turn down your damn stereo close. The renters seem nice, who really knows. It's my own beach at the mouth of a world famous salmon river. That's what's driving me.

But hell is other people.



Or we could just air bnb the out during the summers.

[Bill Douglas]

My tenants are so nice I'm lucky to have them as friends. One of them even comes and house sits the cats when I'm away. Generally having tenants around the place is a great thing. Plus the easy money is something else.

Salmon river OMG

[pwd72s]

One of the happiest days in my life was the day I quit being a landlord...read the horror stories above. They are all true..

I recently emailed a friend who suggested a rental investment. I told him I'd rather be eaten by a goat then crapped over a cliff than be a landlord again. I meant every word!

[petrolhead611]

As has already been said, being a landlord is a business, and for any business to succeed you have to put in the work, and you will get some bad deals along the way but hopefully the good ones will more than negate the stinkers. It really helps if the returns are more than sufficient to pay for the inevitable repairs and evictions.

[Discseven]

Get a property on Salmon... without tenants.

[ckelly78z]

On a completely different note, why would you consider getting a property "just barely within my range" when you also mention retirement in the same paragraph ?

I wouldn't want to take on a huge debt with retirement looming on the horizon, especially if it is dependant on the good rent paying ability of tenants that you didn't pick. What happens to you, and your house if one of your current (or future) tennants turns out to be a deadbeat, requiring expensive repairs, and legal fees ?