What Is Being A Landlord Like?

Member since 2022 · 4 posts · 4 votes

One of the things that has held me back from investing in real estate is the idea of being a landlord. I see and know many investors with multiple properties and the same question comes to my mind every time: "How do you manage so many tenants?! Is your phone being bombarded with text messages from your tenants about issues with the property? Do you have to be on-call all day to ensure you are responsive? How many plumbers/electricians/handymen do you have to know?" I would love to hear first hand experience from landlord in this community! Thanks everyone!

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Nathan GesnerBusiness Member

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Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes

It's like this...

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Nathan GesnerBusiness Member
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Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
4y
It's like this...
The DIY Landlord Book4.7248 Reviews
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10 Reply
Bud Gaffney
Rental Property Investor · Boston, MA · Member since 2019 · 2k+ posts · 1k+ votes
4y
What a great question! Have you ever been on a rollercoaster blindfolded going backwards? : )
7 Reply
Nathan GesnerBusiness Member
Moderator
Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
4y
Quote from @Shane Power:

One of the things that has held me back from investing in real estate is the idea of being a landlord. I see and know many investors with multiple properties and the same question comes to my mind every time: "How do you manage so many tenants?! Is your phone being bombarded with text messages from your tenants about issues with the property? Do you have to be on-call all day to ensure you are responsive? How many plumbers/electricians/handymen do you have to know?" I would love to hear first hand experience from landlord in this community! Thanks everyone!

That was just for phone. Seriously, it's difficult, but it is easier for people that educate themselves and treat it like a business. I've been doing this for 12 years and have 400 rentals under management. I have solid screening processes, policies that nip problems in the bud, a tough skin, tenants that are trained to use my emergency line and not contact me on my cell, etc. I still have non-paying tenants now and then, but I don't let them get out of control. I still find a trashed rental now and then, but I turn it around and use the court or collections to go after them.
Even with 400 rentals, I don't work after 5pm or on weekends except for emergencies or the occasional call. I probably spend 1-2 hours a month on those.
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Peter MckernanBusiness Member
Residential Real Estate Agent · Irvine, CA · Member since 2013 · 2k+ posts · 1k+ votes
4y
@Shane Power
Welcome first off, and second off land lording is not bad all. It's fun when you have expectations set upfront.
Answers:
1. There is a point where you end up getting a PM in place, that is why it is good to have multiple properties within smaller area to get the same manager and give them a good chunk of the properties to see how he/she does and ask for a little discount since you are giving a lot.
2. It came be, but that is why you setup a Google Voice number or another line on your phone so you do not have to get hit all the time with text/calls. One thing I would suggest, use a PM management software that uses notification systems from tenants to owner, owner to tenant which reduces the calls if you train the tenants right.
3.If it's something big, the issues need to be handled right away (water leak, fire, slab leak, etc.), if it's something a little minor you do not have to call back right away. More of a screening call situation. Also, put someone into place $15-$25 an hour part-time through the week to handle this stuff then when handed over to a PM management firm they can do all the calls.
4. Over the years you build a lot of relationships, so start now and keep a spreadsheet in Googlesheets or Dropbox.
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Linda S.
Investor · Richmond, VA · Member since 2016 · 1k+ posts · 2k+ votes
4y
@Shane Power,
What's it like managing a lot of houses? Just a giant game of wack-a-mole.   You can fix everything, but something new will come up-- you just don't know when?! Or if a lot will come up at one time!--sometimes it's small/easy stuff, sometimes it's big stuff, it's always a surprise, and it's always expensive. lol One month i had a sewer line and HVAC had to be replaced within 2 weeks.
Outside of normal stuff, how many calls you get is inversely related to how well your properties are taken care. I manage 50+, and work a full time job.   If you fix things correctly, and your house is in good shape-- tenants don't call just to call. Now, it's normal for stuff to have a lifetime, so if your fridge is 15 years old, you should be expecting it. I don't spend a lot of time on the phone, it's pretty simple-- they said X is broken, I call the person to fix X, and then wait for them to fix in a day or so. I'd say the majority of the tenants I only hear from once or twice a year.  Nearly all my tenants are reasonable and easy to work with, so it's not that stressful. Just treat people how you want to be treated, and handle things quickly!
You want tenants to let you know of the problems!  I always tell my tenants-- I like small problems, tell me when stuff is a small problem!   I have our business phone on me 24/7, so essentially yes-- you are always on call. I tell tenants to call with normal stuff 9AM-5PM M-F, and emergencies 24/7.
You should have 2-3 plumbers/HVAC companies/roofers/etc to call if stuff breaks. Hope this helps!
2 Reply
Bruce WoodruffPro Member
Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
4y
Don't not get into the market because you fear being a landlord. You can easily just hire a PM, and just collect your $$ every month....
5 Reply
Nicholas L.Pro Member
Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
4y
@Shane Power
I have a condo in an A-class neighborhood that I manage myself because the building has on-site engineers and handymen.
My other properties are under property management and I worry about none of this.
1 Reply
Evan Polaski
Cincinnati, OH · Member since 2020 · 4k+ posts · 3k+ votes
4y
@Shane Power, I only own two rentals directly anymore. At one point I had all of nine, so my perception is vastly different, than say Nathan with 400.
With 9, it was still fairly easy to do on top of another job. The issue was: when it rained it poured. So with nine doors and nine tenants, most months were cashing a check and logging it in quickbooks. But, when I got one notice to vacate, or one service call, it felt like I was about to get several more, and if memory serves correctly, that was mostly accurate.
Even today with 2, I had a tenant leave this month, and while good earners (engineer and nurse), they left the place disgusting. Like $1,000 cleaning quote disgusting. Plus holes in walls from hanging pictures and TV, a couple small gouges in the wood floors (which were refinished prior to them moving in), etc.
As for hiring a manager: well, I never had success when I hired managers. More work overseeing them, and less money coming in. Also lower quality/shorter stay tenants versus who I placed.
And lastly, cash flow is pretty much a myth, unless you sell before the capex items hit. But if you are cash flowing $300/mo on a SFR, and reserving $200/mo for capex/maintenance: a new roof will eat up all of those reserves for a year and all your cash flow. And if the furnace and AC need replaced: that's another $6k. New kitchens and baths are also very expensive, if you want to continue getting top of market rents.
3 Reply
Eliott Elias
Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes
4y
Being a landlord can be the worst job ever if you don’t set yourself up the right way. 1. Screen your tenants as best as possible and interview them 2. Set expectations on them and yourself. Know the laws and how to maneuver around situations like late rent
It’s not as passive as people think but not as scary as people think
5 Reply
Steven Foster Wilson
Rental Property Investor · Columbus, OH · Member since 2017 · 3k+ posts · 3k+ votes
4y
Quote from @Shane Power:

One of the things that has held me back from investing in real estate is the idea of being a landlord. I see and know many investors with multiple properties and the same question comes to my mind every time: "How do you manage so many tenants?! Is your phone being bombarded with text messages from your tenants about issues with the property? Do you have to be on-call all day to ensure you are responsive? How many plumbers/electricians/handymen do you have to know?" I would love to hear first hand experience from landlord in this community! Thanks everyone!

Honestly, I think there is great value in having a property manager. Especially, if you want to grow and keep growing. It is all about building a team. Managing on your own is making the RE depend on you. It will only be able to get as big as you can handle, rather if you build a team then the sky is the limit.
2 Reply
Curtis Mears
Property Manager · Raleigh, NC · Member since 2014 · 728 posts · 596 votes
4y
@Shane Power
I think this answer will depend on size. I am a small time landlord with 12 sfh. With 12, easiest job around. Most months, I have little to no work. When I need to fill a property, sure, I have 2 to 3 weeks of work, time spent fixing and cleaning, then time screening potential tenants. I also have paperwork and such that needs done, but the commitment is minimal.
3 Reply
Mike Dymski
Investor · Greenville, SC · Member since 2016 · 5k+ posts · 13k+ votes
4y
You're on call 24/7 but calls and resident transitions are infrequent. I think it's like anything else in life...you should enjoy doing it and, if not, there are other investing strategies (such as simply having 3rd party management).
2 Reply
Bill B.
Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
4y
With a PM and a dozen properties.
Once or twice a month they fix something under $250 and I find out on my statement.
Once a month an Hoa complains about something and I forward it to Pm (I should have them sent directly there instead.)
Two to three time a year an appliance goes out. And I have to ok the replacement or find one myself.
Once a year someone moves out and there’s turnover.

So I probably put in almost an hour’s worth of work in an average month, but 30 minutes of that is accounting I do myself because I like it.
2 Reply
JD MartinBusiness Member
Moderator
Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes
4y
Quote from @Nathan Gesner:

It's like this...

LOL. That's doing it wrong - it's more like this:

Podcast Guest on Show #243
Skyline Properties
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1 Reply
James Hamling
Real Estate Broker · Minneapolis, MN · Member since 2011 · 5k+ posts · 6k+ votes
4y
What Is Being A Landlord Like?
Ever heard the term "Herding Cat's"?
Ok, now give half those cat's whisky, the other half meth, then say "Got my rent Bruh" and run through trying to catch one for your rent......
Ok, not all day's are like that but some, oh boy some really feel like that.
It's all about having STRONG FENCES. You gotta have systems in place, and spend about 40-50% of time constantly refining and evolving those systems. IF you go down the black-hole abyss of trying to manage the actual people, you'll find just 2 somehow have this power to eviscerate an entire week of time. So much relies upon the system, can not stress this enough.
As for the experiences, at this point I honestly think I could write about 14 seasons worth of "No Sh#t, I actually experienced ___ before". Cement down drains, seen it. Nasty messages painted on walls after eviction, yup, but it really is so much more meaningful when done in poo I just never understand why it's always hand applied..... Divorces gone wrong, yeah I could fill a few chapters on just that fun filled subject. Room-mate-wars, yup. And on and on and on and on......
So really, being "in the trenches" of PM requires becoming an expert negotiator, being calm as a cucumber when everything is going bonkers all around you, LEADING, reading people, creating, implementing and defending systems, knowing the red-flags and picking them out early especially when well hidden.
There is a lot to it, and asset class will vary the "fun".
BUT..... know what, there is also some great people you meet along the way too, some amazing people that you get to help, and they appreciate it, and the last 4 headaches just disappear and you feel like a rock-star again. There is positive experiences in the mix. You gotta have Rhino-skin, if prone to take in other peoples BS, it's going to be a rough road, going to take a lot of beatings to toughen up that skin.
Being a bit of an adrenalin junkie doesn't hurt either, lol.
4 Reply
Shane Power
OP
Member since 2022 · 4 posts · 4 votes
4y
Quote from @Nathan Gesner:

Quote from @Shane Power:

One of the things that has held me back from investing in real estate is the idea of being a landlord. I see and know many investors with multiple properties and the same question comes to my mind every time: "How do you manage so many tenants?! Is your phone being bombarded with text messages from your tenants about issues with the property? Do you have to be on-call all day to ensure you are responsive? How many plumbers/electricians/handymen do you have to know?" I would love to hear first hand experience from landlord in this community! Thanks everyone!

That was just for phone. Seriously, it's difficult, but it is easier for people that educate themselves and treat it like a business. I've been doing this for 12 years and have 400 rentals under management. I have solid screening processes, policies that nip problems in the bud, a tough skin, tenants that are trained to use my emergency line and not contact me on my cell, etc. I still have non-paying tenants now and then, but I don't let them get out of control. I still find a trashed rental now and then, but I turn it around and use the court or collections to go after them.
Even with 400 rentals, I don't work after 5pm or on weekends except for emergencies or the occasional call. I probably spend 1-2 hours a month on those.

Thanks so much for this input! This gives great perspective. For your 400 rentals, I am assuming you use a PM?
0 Reply
Jude B ritchie
Member since 2020 · 1 post · 3 votes
4y
I found it much easier to manage 40 units than just 1 or 2. When i just had one unit, i felt the urge to fill it as I needed the cash flow. As my property count increased a vacany allowed me time to improve the property ( thus increase the rent ) and make a good decision on a tennant. With multiple properties its easier to get skilled trade guys to show up as they know there will be more work from you. Additionally, at the very beginning I tell the new tennant that I use the "same guys" so they will consistently see the same plumber or HVAC person.... which in turn means you wont get same day service..... it might be actually 2 or 3. If you tell them in advance you ahve already set the expectations.
3 Reply
Chris Walko
Chicago, IL · Member since 2022 · 12 posts · 6 votes
4y
It can vary greatly in my opinion. If you rent in A-B areas with very good screening, new apartment, your experience in being a landlord is going to be totally different in a D area apartment that you didn't rehab.
2 Reply
JD MartinBusiness Member
Moderator
Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes
4y
Quote from @Shane Power:

Quote from @Nathan Gesner:

Quote from @Shane Power:

One of the things that has held me back from investing in real estate is the idea of being a landlord. I see and know many investors with multiple properties and the same question comes to my mind every time: "How do you manage so many tenants?! Is your phone being bombarded with text messages from your tenants about issues with the property? Do you have to be on-call all day to ensure you are responsive? How many plumbers/electricians/handymen do you have to know?" I would love to hear first hand experience from landlord in this community! Thanks everyone!

That was just for phone. Seriously, it's difficult, but it is easier for people that educate themselves and treat it like a business. I've been doing this for 12 years and have 400 rentals under management. I have solid screening processes, policies that nip problems in the bud, a tough skin, tenants that are trained to use my emergency line and not contact me on my cell, etc. I still have non-paying tenants now and then, but I don't let them get out of control. I still find a trashed rental now and then, but I turn it around and use the court or collections to go after them.
Even with 400 rentals, I don't work after 5pm or on weekends except for emergencies or the occasional call. I probably spend 1-2 hours a month on those.

Thanks so much for this input! This gives great perspective. For your 400 rentals, I am assuming you use a PM?

Nope. Just like the guy on TV, he not only plays a doctor, he is one in real life. Nathan manages his and other people's properties.
Podcast Guest on Show #243
Skyline Properties
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0 Reply
Isaac S.
Member since 2018 · 563 posts · 562 votes
4y
I can't believe no one has mentioned the terrible T's!!!

Tenants, toilets, trash, termites...in that order... for some people it's easy, for others it's too much. It's mostly easy and uneventful until it's not. Good luck!
2 Reply
Carlos Ptriawan
Member since 2019 · 7k+ posts · 4k+ votes
4y
It's a life full of surprises/misery and sometimes I cursed myself "why do I need to do this", but then when I checked Zillow and went to the tax guy, I'm happy again for no reason.

Nowadays I can answer random landlord questions like (-) which state you need to file tax when you receive loss at your K1 (-) what's the cost of fixing a plumbing in Alabama (-) Why are property taxes so high in Texas and IL (-) Why house soil condition is not that great in Montgomery (-) why there's a lot of HVAC thief at blablabla (-) this neighborhood in Indiana is really bad because ..... (-) Can I receive QBI deduction again ?? (-) So I can do cost segregation on STR ? yes BUT ...... (-) Why in the world someone would like to buy leasehold property in Hawaii (-) Today is Friday with CPI report and no liquidity in MBS, lock your rate ! (-) FAQ:how to kick squatter from your house (-) Don't do ADU in California because ....... (-) hey this property still has the K&T electric hahaha (-) The cost to change all the windows in your house to double pane is (-) 70% of your SPAM received call is from wholesaler that would like to buy your property at no reasonable price hahaha..
2 Reply
Jared HottleBusiness Member
Real Estate Agent · Cedar falls IA Waterloo, IA · Member since 2020 · 902 posts · 549 votes
4y
You won't know what you dont know as far as building systems go that streamline the process but you only learn by doing. Once you do something a certain way and like it do it that way all the time. If the system breaks or you are doing something you really hate, figure out a better way to do it and/or hire someone to do those things for you.
[email protected]319-288-5382
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Eric Gerakos
Investor · Costa Mesa, CA · Member since 2016 · 1k+ posts · 1k+ votes
4y
It’s as involved or as uninvolved as you want it to be. I “manage”my rentals which consists of occasionally calling my handyman who can fix anything at a reasonable price and collecting rent through direct deposit. In about 20 years of being a landlord I’ve never met a tenant. I’ve also never had a late rent payment. All true.
1 Reply
Sylvia B.
Rental Property Investor · Douglas County, MO · Member since 2014 · 1k+ posts · 1k+ votes
4y
What is it like being a landlord? Well . . . . . . It really depends on when you ask.
There are times when 3/10 houses go vacant at one time. There are good tenants that suddenly and inexplicably go very, very bad. Mystery plumbing problems that take a while to solve. Tenants who consistently pay just under the late fee deadline. Suicides. Incarceration. Freak windstorms that blow large trees onto houses. Etc., etc.
But 95% of the time none of that stuff happens. We have very few turnovers, partly because we treat our tenants right, and partly because our in market it is very difficult to find a rental, so people stay put.
We've never, in 11 years, had a call in the middle of the night. We did have 2 maintenance calls during our recent 2 week vacation, but they were a simple matter to take care of. One, the AC wasn't working and the high temp was close to 100. Called our HVAC guy and asked them to schedule with the tenant. Done. The other was a bad plumbing leak (broken pipe). Reminded tenant of how to shut off water and called plumber. Now all that's left is replacing ceiling tiles in the basement. Yes, it technically "interrupted" our vacation, but not too much. We've only had one other maintenance call this year.
Most of the time, it's smooth sailing.
0 Reply
Matt M.
Specialist · Easton, PA · Member since 2018 · 1k+ posts · 2k+ votes
4y
Quote from @Bruce Woodruff:

Don't not get into the market because you fear being a landlord. You can easily just hire a PM, and just collect your $$ every month....
What’s the fun in it if you just hire a PM?! Haha
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