Weird question, is this a bad idea?

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Weird question, is this a bad idea?

Lam N.
Rental Property Investor · Troy · Member since 2017 · 175 posts · 271 votes

I currently drive a beat-up old minivan with 240K miles on it.  Yeah, I sacrificed myself to jump-start my rental business.  I plan on buying the Tesla Cybertruck as my main vehicle.  

Recently, a thought came to me.  Is it a bad idea to get the cybertruck and then let the tenants see me driving in it?

Ok, hear me out.  Every time the cybertruck is mentioned, I always hear people saying it must cost $120K.  It looks expensive.  But the thing is it's only $40K.  One of my tenants drive a $70K truck, so... But that doesn't matter because people keep thinking Tesla = rich man's toy.

For the past year, there's been a lot of hate for landlords flying around.  A thought occurred to me that tenants seeing me drive what they think is a $120K vehicle might create resentment.  I'm afraid they might start thinking "so, this is what my rent is going toward..."

Is this fear warranted or am I over thinking it?  

A possibility is I could continue to drive my old minivan whenever I have to go to a tenant's place and only drive the Cybertruck strictly for pleasure.  A friend suggested this to me.

What do you think?  Do I have to worry about this perception or am I just overthinking this?

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Jonathan StyerBusiness Member
Real Estate Broker · Columbus, OH · Member since 2018 · 330 posts · 396 votes
5y

You know your tenants better than anyone on BP. If you're worried about it just drive the minivan when you go around like your friend said. As you grow, you're not going to really be able to worry about what the tenants think of you, this is a business. Treat them fairly and expect the same and anything outside of that is just noise. 

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  • Eric James
    Investor · Malakoff, TX · Member since 2017 · 2k+ posts · 2k+ votes
    5y

    What I mean is, the general public thinks wealthy people all drive expensive vehicles. Statically that isn't true. It's more commonly people who want to look wealthy drive expensive vehicles. 

    3Reply
  • Matthew Fassett
    Rental Property Investor · Lehi, UT (Lehi) · Member since 2018 · 91 posts · 99 votes
    5y

    @Lam N. I use to think this way too about what my employees saw me drive. They are getting paid 15 an hour and boss is driving a 90,000 dollar truck. The thing is I worked my TAIL off to get where I am. The money wasn’t given to me, I didn’t steal it, my daddy didn’t buy it for me, and I didn’t inherit a ton of money. I worked hard for that money and sacrificed many 18 hour days 7 days a week to be able to live the lifestyle I do now.

    1Reply
  • Logan Roca
    Rental Property Investor · Columbus, OH · Member since 2019 · 11 posts · 11 votes
    5y

    @Joe Villeneuve I

    I was thinking the same thing! I would assume my landlord has more experience driving a nice car. I’d probably be worried that my landlord is going to loose the house to the bank because he can’t afford a decent car.

    2Reply
  • Anthony Vander MeerPro Member
    Rental Property Investor · Brooklyn NY / Upstate, NY · Member since 2019 · 52 posts · 46 votes
    5y

    The Cyber Truck is only 40K, man I thought it was 70K to start.  You got me thinking, gas is getting expensive :).   You know I used to worry about this as well and always made sure to take my truck over my nicer car. Then I realized no one cares.  Tenants/people are worried about themselves not what your driving.  No one is not going to pay you rent because of what you drive. So pull up in that cyber truck and enjoy it.  

    2Reply
  • Steve Vaughan
    Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes
    5y

    If your tenants don't see you and think here comes that poor bast*rd working their butt off for nothing to keep us happy, you're doing it wrong.

    But I have been among the few on many issues here,  so factor that in. 

    4Reply
  • Bjorn AhlbladPro Member
    Investor · Shelton, WA · Member since 2017 · 6k+ posts · 6k+ votes
    5y

    @Lam N. Thanks for starting this thread. I had no idea the Cybertruck costs no more than just about any other truck. The 4 wheel drive job is 50k; that is about the same price as a new Tundra or Ford in 4WD. Pretty exciting!

    1Reply
  • Jill F.
    Investor · Akron, OH · Member since 2016 · 2k+ posts · 4k+ votes
    5y

    My beater mini-van has 266,000 miles; I'm keeping it until I am no longer a startup and I can afford to pay for enough help to renovate new purchases without us having to personally be on the crew and the new car chip shortage is behind us, or when the old mini-van girl gives up the ghost. I'm hoping to get on the tesla wait list end of 2022.  

    3Reply
  • Greg M.
    Rental Property Investor · Los Angeles, CA · Member since 2017 · 2k+ posts · 5k+ votes
    5y

    This question comes up a lot. I really don't understand the issue. I drive a $130K Porsche and I drive it to my rentals. I don't give a s*** what my tenants think about it or me or my finances. My life choices are not their concern. My financial situation is not their concern. What I choose to spend my hard earned money on is my choice. How much money I make is my business. If it bothers them that I can afford an expensive car, I'll be happy to non-renew the lease and they can find an equally expensive unit where the landlord drives a beater. 

    3Reply
  • Katarzyna Lach
    Realtor · Lone Tree, CO · Member since 2020 · 22 posts · 19 votes
    5y

    No matter what you do you can't control what each and every human being will think of you. You pull up in the junk car they will think you can't handle the money, you pull in luxury car well now you are a rich landlord out to get them for their money. Each person and mind is different and I think in the end your decision should be based on your needs and wants and not what other think. I personally think that being a professional there is value of representing yourself in the best possible way. So whether you drive a new Benz or a 98 Civic, whether you wear designer or budget clothes, keep things clean and in good shape when your customers see you their impression "this person cares about his/her things, and hopefully will treat me the same way". And of course in the end it's not about things it's about people so treat them right be a good landlord and they will appreciate you no matter what you drive. Good luck on that Tesla, maybe if you post the same question on Elon's page he will get you to the top of the waiting list!:) Cheers

    2Reply
  • Zambricki Li
    Real Estate Agent · Los Angeles CA + Lake Tahoe, NV and CA · Member since 2021 · 180 posts · 158 votes
    5y

    @Lam N. In general just be yourself, no need to front up or down. Tesla’s in particular are a sore spot for people. In Tahoe locals see them as the “canary in the coal mine” of SF money tech coming in raising prices. In LA every 3rd car is a Tesla no one would blink. I actually think it’s more about how you conduct yourself with the tenants than what you drive.

    2Reply
  • Tucker Cummings
    Investor · Raleigh, NC · Member since 2019 · 433 posts · 743 votes
    5y

    Have you considered hiring a property manager? It would create a buffer between you and your tenants and you’d never have to think about this again.

    2Reply
  • Robert MacNeal
    Member since 2020 · 9 posts · 14 votes
    5y

    @Lam N.

    Based on my experience think it could create some undesirable attention. I recently bought a Jeep Gladiator which all in brand new was about 50k. People comment all the time what a crazy cool “expensive” car it is - fun sometimes because it starts conversations but it feels like it definitely gives people the impression of a flashy car/truck. Thinking that if some of those people were clients it could give them the feeling that they are supporting a “flashy” lifestyle and then have bad feelings about the business and prices. Just a thought.

    Rob

    2Reply
  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    5y

    I've always driven an old, beater vehicle. It saved money, I didn't have to worry about it being dirty or getting a scratch while hauling tools or scraps around, and I wasn't flashing a "I'm rich" sign in front of tenants.

    I bought my very first new vehicle in late 2021 and am riding in style. However, I spend less time visiting properties now because I have employees doing it for me. I still occasionally feel like I'm showing off, but I think that's my perception. When I look around, I see tenants and even highschool kids driving nice trucks, so I don't really stick out as bad as I think.

    After driving a brand-new vehicle for six months, I'm honestly wishing I would have stuck with one that was 3-5 years old.

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  • Joe VilleneuvePro Member
    Plymouth, MI · Member since 2013 · 13k+ posts · 19k+ votes
    5y
    Originally posted by @Robert MacNeal:

    @Lam N.

    Based on my experience think it could create some undesirable attention. I recently bought a Jeep Gladiator which all in brand new was about 50k. People comment all the time what a crazy cool “expensive” car it is - fun sometimes because it starts conversations but it feels like it definitely gives people the impression of a flashy car/truck. Thinking that if some of those people were clients it could give them the feeling that they are supporting a “flashy” lifestyle and then have bad feelings about the business and prices. Just a thought.

    Rob

    ...except we're not talking about a business in that sense.  If I drove up as a contractor in a Porche to a construction site, I know my employees would drool, but after would remember that the next time their contracts were up.  That's because I would be controlling the same pool of money that pays them and myself.

    This doesn't work like that.  The tenants ARE the source of money.  The rent they pay isn't based on my lifestyle, it's based on the going rate for rent in the area the property is in...period.

     What I drive up with tells them how successful I am as their landlord, which in turn tells them how secure they should be about the property they live in...as long as I'm not holding back on repairs, etc...

    2Reply
  • Colleen F.Pro Member
    Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
    5y

    As far as this cyber truck cost it was $100 deposit to place an order when they first started accepting them and I think even that was refundable. $43,000  price was starting and my husband ordered one.  Not sure if he will go through with it but that was not as much as some other new trucks and very little commitment. One million on backorder I am not surprized because Tesla is using those "orders" to gauge production.  Although I doubt though they will available in your time frame.

    As far as what car someone drives, since the advent of leasing I don't think you can judge much by the car.

    1Reply
  • Eddie L.
    Member since 2020 · 89 posts · 43 votes
    5y

    @Joe Splitrock spot on! My wife had the model 3 and we paid ~$58,000 and she now has the Y and it was $61,000. Sad part is Tesla immediately reduced the price of the Model 3 when the tax credit expired. I think most people draw conclusions based on what others drive, not just tenants.

    2Reply
  • John MorganPro Member
    Rental Property Investor · Grand Prairie, TX · Member since 2018 · 2k+ posts · 2k+ votes
    5y

    I drove my old beat up minivan for the first five years in this game because I didn’t want an image of being a greedy wealthy landlord. I’ve been frugal my whole life to be able to invest my money and let it grow and take off, so I wouldn’t be poor my whole life with a pay check to paycheck life style…like all of my tenants. My money is finally working and has built up a lot of wealth for me by investing it over the years. Two years ago, I bought a 24k (three year old) Nissan Pathfinder that looks new and like an expensive 40k car. My tenants made comments about it at first, and I’m not worried about them thinking I’m wealthy. They haven’t changed and they still pay me on time and seem like great people. It’s an image I’m ok with now. But I was worried at first what they would think of me. And it was always kind of funny when my wife would always ask me why our tenants had nicer cars than us. I tell her because that’s why we own properties and they’re renting. Lol

    1Reply
  • Robert MacNeal
    Member since 2020 · 9 posts · 14 votes
    5y

    @Joe Villeneuve

    Joe,

    I would have to respectfully disagree. Having spent the first half of my life as a renter and having been in numerous properties with numerous landlords I never had a great feeling about the landlords who rolled up in what appeared to be expensive cars - many of whom were actually fine landlords. Not many people think of their landlords are doing them a favor or on their side regardless of the rent. I think it also adds to the pressure buildup should anything not go perfectly with the renter such as repairs in terms of timing or adequacy. It’s easy for a renter to fall back on “all he cares about is money” when their expectations aren’t met - even if those expectations aren’t reasonable. People generally emotionally, mentally and physically gravitate towards those who look - including possessions- and act and seem like them. It’s the built in tribal part of our brain. So unless they are all driving expensive cars and making what they feel is a lot of money - a lot being defined as the same or more than the person they are thinking about (ie. you) they will feel neutral to bad about the expense. Those who are killing it financially and who choose to rent based on sound economic or social factors are in the distinct minority. Most people base their decisions on emotions not logic and logic very rarely convinces them otherwise. So although you may be running a legitimately fantastic rental operation if your tenants perceive there is enough profit for you to drive an “expensive” car then they will likely equate that with they are paying too much. “Rich guys/gals” (think Jeff Bezos, the Waltons etc at the extreme ends) are generally not thought of very well in society at large regardless of the actual amount of good they are doing. We live in a country with very little and declining respect and understanding of capitalism. So in theory I agree with you but in practice I think it’s a little different matter. So yes if your rents are competitive and places are decent will you get renters - of course. And if you spend time educating your tenants about how they can buy hold and rent properties to achieve the same kind of success as you then maybe it’s a different story. Your success is an example to them. However that’s also a completely different business model. Just a thought from the other side of the equation.

    Rob

    2Reply
  • Andreis Bergeron
    Member since 2021 · 134 posts · 46 votes
    5y

    There is a management strategy at medium to large companies for which managers/execs who own/can afford expensive-looking cars should avoid driving them to the workplace. Obviously this is slightly different, and I am not taking one side or another, but appearances do matter.

    2Reply
  • John Soba
    Pompano Beach, FL · Member since 2018 · 21 posts · 10 votes
    5y

    @Lam N. Good morning, I hope this message finds you well. Understand, that whether you think it’s a good idea or a bad idea you’re correct. Remember that our thoughts generally control our actions which intern create a result, the problem is most of the time we don’t accept the results and/or the consequences after the fact. And most of the time we victimize ourselves in the process, because of lack of accountability.

    Quick example. I grew up In an environment where having food stamps public housing and section 8 or other government programs was the norm. however, now my family and I live in Coral Springs fl, which is consider an upper middle class neighborhood. Anytime I go back to those neighborhoods and see those that are still left that I can consider friends there’s always this look, or a sarcastic comment or something.

    Anyway, the point! If you live your life based on other peoples perceptions, You just not living. You’re just existing in someone else’s world.

    I’m sure you worked very hard to gain everything you have. If it was me, I’ll be damned if someone else is going to subject me into questioning whether or not I can enjoy what’s a earned. Believe me everybody has the same opportunities, Regardless of their upbringing.

    3Reply
  • Joe VilleneuvePro Member
    Plymouth, MI · Member since 2013 · 13k+ posts · 19k+ votes
    5y

    ok @Robert MacNeal As a renter for so long, how did you feel when your landlord showed up with a van that looked like the rust was holding it together, made noises not recommended in the owners manual, and was slow to react to your requests for repairs?

    1Reply
  • Victor S.
    WorldWide · Member since 2016 · 1k+ posts · 1k+ votes
    5y
    Originally posted by @Joe Villeneuve:

    ok @Robert MacNeal As a renter for so long, how did you feel when your landlord showed up with a van that looked like the rust was holding it together, made noises not recommended in the owners manual, and was slow to react to your requests for repairs?

    I highly doubt that's how Lam's van looks like. Big deal, he needs some wheel bearings... even throwing a new drivetrain into his minivan is probably a $1k labor job + $1k for parts or those thereabouts. He could have this thing running forever if he really wanted to (until he frame rusts thru). He obviously wants (read:emotional decision) a new toy to play with, and he sure has that right.

    Like @Jim K. had said, you have to gauge your tenant base. If you deal in C class or lower, then I definitely wouldn't be driving up there in a cybertruck, more like an armored truck lol A mom&pop landlord who does most of maintenance him/herself and drives and older vehicle would not strike me as someone who doesn't take care of business, on the contrary.

    Lam, my dad always told me this: if in doubt, don't do it. Sleep on it, digest the feedback, then pull (or don't) the trigger. 

    2Reply
  • Jim K.
    Handyman · Pittsburgh, PA · Member since 2018 · 5k+ posts · 13k+ votes
    5y

    I would like to repeat that my advice is for low C-class, self-managing LLs with a portfolio of long-term rentals in single family and small multifamily. I operate out of western PA. What works for me will not necessarily work for everyone else.

    BUT....

    I think most of you don't understand much about poor people, envy, class hatred, and how eighty pounds of concrete poured down a soilstack cleanout can ruin your day in a hurry.

    4Reply
  • Karl ForsheePro Member
    Member since 2018 · 9 posts · 6 votes
    5y

    @Lam N. Ok I’ll throw in my 2 cents or less

    Depends on how much you value other’s opinions of you and how much you let that control you. Of course everything in balance. Class A tenants will look at your van and say you don’t know how to manage your money. Class D tenants will look at your truck and say you are using them for their money. Perspective.

    Nonetheless here’s my story.

    A lifetime ago I worked over seas doing humanitarian/mission worked. Loved the work but of course pay was lousy. So to help make make ends meet for my family I flipped cars on the side. Through my wheeling and dealing ended up with a BMW 325i. Loved the car. Payed way less than my coworkers and the people I served payed for their SUV’s. Instantly changed everything. People’s said things like they are paying you too much.

    In the community if my wife rolled up with it purchase an item they would refuse to negotiate. However if I showed up with my beater truck they gave me good deals. It was a sad day when I sold it a year later.

    2Reply
  • Jim K.
    Handyman · Pittsburgh, PA · Member since 2018 · 5k+ posts · 13k+ votes
    5y
    Originally posted by @Matthew Fassett:

    @Lam N. I use to think this way too about what my employees saw me drive. They are getting paid 15 an hour and boss is driving a 90,000 dollar truck. The thing is I worked my TAIL off to get where I am. The money wasn’t given to me, I didn’t steal it, my daddy didn’t buy it for me, and I didn’t inherit a ton of money. I worked hard for that money and sacrificed many 18 hour days 7 days a week to be able to live the lifestyle I do now.

    So glad you made it through with your humility fully intact.

    4Reply
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