I take issue with the term "slumlord" and here is why

I take issue with the term "slumlord" and here is why

Investor · Marietta, GA · Member since 2016 · 98 posts · 168 votes

Landlords have a noble mission. We provide safe and clean housing to our tenants, keep homes maintained and reasonably respond to our tenants requests. We provide housing options so that the government doesn’t have to. We build profitable portfolios that employ handyman, electricians, framers, dry wallers, plumbers, roofers, cleaning crews and real estate agents.

We take dilapidated homes and transform them into clean, safe, live-able spaces that create homes for people who either cannot afford a home or chooses to rent. This helps improve the landscape of the local neighborhood and increase property values for everyone who lives there.

We take on all the risk- we keep the water heaters running, HVAC repaired, plumbing working and toilets flowing. We set proper boundaries to our tenants with the expectation that rent is paid on-time- not only helping them make financially wise decisions, but when the proper programs are in place- you can help boost tenant’s credit scores with positive on-time payment reporting.

And yes, we deserve to make healthy profits in doing so.

So next time you hear some jacka@@ referring to landlords as slumlords- share this sentiment. Stand in your power knowing you are providing something that the government simply can’t do well. Know that you as a private citizen are adding tremendous value to your community.

And for goodness sake- please screen your tenant’s properly. You can’t be a slumlord if you don’t rent to unqualified tenants. Stick to your screening procedures and don’t second guess yourself.

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Philadelphia, PA · Member since 2017 · 824 posts · 1k+ votes
6y

My father (who I don't have a great relationship with) called me a slumlord last Thanksgiving. Twice.

I politely reminded him that I took the knowledge I've gained to try and build a better life for me my wife. And that I would live in a property I buy, because I think that's important. And I told him my property rents were $1000 each, which I thought to be quite a bit of money, so I don't consider that a slum.

It was all the justification I needed -- I'm doing something that an armchair investor (or non-investor) would poo-poo. I could be a failure, but my rear-end is off the couch trying.

I think if you're called a slumlord, its for 3 reasons -- someone is jealous, someone has a bad landlord experience, or you may actually be a slumlord. I can't control the first two.

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  • Rental Property Investor · Birmingham, AL · Member since 2018 · 31 posts · 11 votes
    6y

    @Kimberly Kesterke I've been hearing this term more lately. I'm very new in the industry, just purchased my first property this year which is a nice enough SFH, in a nice enough area that anyone should feel comfortable living in. When I explain to friends and coworkers what it is I'm doing and my goals, they suggest Im pushing to be a slumlord, who cheats the tax system and makes life harder for everyone else. I've tried to explain that anyone in the room has the ability to save their money for a couple years, buy a property & then they can eventually take advantage of tax laws & incentives while creating wealth.

    But... I’m a part of the problem you know.

  • Rental Property Investor · New Bedford, MA · Member since 2019 · 6 posts · 9 votes
    6y

    @Kimberly Kesterke.

    As everyone else has said the slumlords are how we make our money!!

    -

    Got my house distressed for a DEAL because of a slumlord.

    -

    Fixed it nicely and can now rent for top market prices against SLUMLORDS who don’t even clean the apartments before showing and expecting the same prices as I am..immediate excitement and urgency to apply over here from everyone that sees the place!

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    I have set my own standard of living and it’s far from a slumlord and I will always maintains my units to be in conditions in which I’d be happy to inhabit. Slumlords will always be the ones that make my business SHINE and MAKE ME MONEY..

    -

    Any SLUMLORDS have any buildings they are losing control of that they want to give over to some good hands?! $$$$$

  • Flipper/Rehabber · Largo, FL · Member since 2018 · 13 posts · 9 votes
    6y

    @Kimberly Kesterke

    A little lame post. You wasted so many calories to type this. Who cares if someone calls you or others a slumlord. As long as both sides get what they want, you the income, the tenant a roof over his head.

    Whoever is not involved in that relationship saying that is just jealous.

    First of all, you are a landlord to make money, not just to provide people with housing or keep their toilets flushing for because you are good person.

    As long you don’t do anything morally or legally wrong, being called slum is not offensive at all.

  • Real Estate Investor · Springfield, MO · Member since 2017 · 1k+ posts · 2k+ votes
    6y

    For every slum lord, there are dozens of slum tenants.  News media and political hacks get mileage by bashing on the property owners, but who/what really causes the properties to deteriorate?  I would argue it's 1/3 age of the unit and 2/3 the tenants themselves.  Bad roofs absolutely qualify one as a slum lord.  There's really nothing a tenant can do to damage the roof unless they improperly mount a satellite dish or put up a Clark Grizwold Christmas light display.  Much damage, particularly the interior, comes from poor tenant behavior and damages. 

    I would like to go on TV some time and tour through one of those slum houses with a crew a point out the fist sized holes.  I would ask brilliant, investigative journalistic style questions such as, "Do you think the land lord punched a hole in the wall?"  And I would follow up with, "How many of the land lord's dogs peed on this carpet?"

    It's all part of the game.  Let them talk.  I have more constructive things to do than try to persuade the unpersuadable.

  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    6y
    Originally posted by @Tushar P.:

    I thought any rentals approaching/exceeding 2% rule (monthly rent >= 2% of purchase price) will require a slumlord to manage them - is that right? Also, we are hearing only one side of the story. It is easy to say that I am not a slumlord because I didn't do anything, it's just that the tenant converted my property to a slum. 

    @Kimberly Kesterke good point on the importance of tenant screening. Ask yourself (no need to answer here) whether you will provide the contact info of all the tenants in the last 2 years if a prospective tenant asked for it (good tenants use that to screen slumlords).

    markets price for risk

  • Daniel SmythPro Member
    Rental Property Investor · Rockford, IL · Member since 2019 · 471 posts · 342 votes
    6y

    @Kimberly Kesterke

    Actually, I never associated myself with being a slumlord, so as the term is used, it does not apply to me. It also does not apply to you, I am sure.

    Slumlord, to my definition, is one who rents properties that are in poor shape as a rule or practice.

    Just as my skin is very fair and light in color, I dont ever feel the need to apologize for racists, I refuse to apologize for slumlord because I rent homes in different states.

    In my book, people are good until they have proven to be otherwise.

    Happy New Year!

    I am getting a Son-In-Law in a few days. The New Year is looking good.

  • Member since 2019 · 3 posts · 0 votes
    6y

    I have managed property for several owners over the years in South Florida. I don’t have a proper definition or a litmus test to prove an owner’s identity as a slumlord but I know which owners I needed to move on from as soon as possible due to their maltreatment of their tenants.

  • Rental Property Investor · Sacramento, CA · Member since 2015 · 1k+ posts · 893 votes
    6y

    @Kimberly Kesterke you know I don't think all landlords serve a noble cause, but there are plenty who aim to do so. Low income housing is an area of great necessity, and increasingly so. It is in fact hard though, and I think the idea that we can all just screen tenants well and rough neighborhoods will become good neighborhoods is a bit oversimplified.

    I play in the C- to B+ range of assets. The C- range is different. It is higher yield for a reason. I'm more selective when identifying a C market to invest in, especially with respect to rental demand and landlord tenant law. I'm also pickier when performing due diligence with respect to condition and more averse to under market rents and vacant units. If you're prudent, these lower income assets can be higher yield and relatively stable, but the first year or so of stabilization is usually subject to more incidental risk. Honestly, I think they're good assets for someone who is willing to trade a bit of headache for the potential to earn higher ROI. I preferred these at some point, and my preference has shifted to B class as my income and value in my primary business has grown substantially- and I have observed the same set of preferences for others.

    As for being labeled a slumlord. We just have to shut it off. Maybe even speak of our ventures less, which is an unfortunate truth. You get rich off low income rental property, you're called a slumlord. You get rich off A class rental property, you're called greedy, or lucky. You get rich off a business and earn your success, and you're called a rich (insert expletive of choice) who thinks they're better than everyone else. Saying too much about your financial endeavors is not so different from saying too much about your love life, or political/religious positions. Obscurity is your friend. Go get yourself 1000 sec8 units. 

  • Rental Property Investor · Sacramento, CA · Member since 2015 · 1k+ posts · 893 votes
    6y

    @Jay Hinrichs risk isn't the ONLY determinant in market pricing. Although I agree it is one of them. 

    There's a bit of hidden gold in finding markets that are priced low for reasons other than risk. The richest investors are in fact some of the best speculators out there ;)

  • Rental Property Investor · Atlanta, GA · Member since 2019 · 3 posts · 1 vote
    6y

    @Joe P. well said!

  • Rental Property Investor · Member since 2018 · 29 posts · 3 votes
    6y

    Well said:-) Thx for the reminder.

  • Multifamily Syndicator · Houston, TX · Member since 2016 · 1k+ posts · 2k+ votes
    6y

    Both words have Lord in it! What else can one ask for!

    😜😜😜 

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