Rental property investing has always been seen as the path toward passive income. Buy a property, lease it to a tenant, and deposit those checks. How difficult can it be?
The reality is that it’s never really passive if you’re the landlord. That’s one reason to consider hiring a property management firm that can handle tenant relations and everything else. One mistake to avoid is retaining the services of a property manager that’s too far away. If you’re renting out a single-family home in Los Angeles, hire a Los Angeles-based company. And if you’re renting out an apartment unit in Houston, find a property manager in Houston.
While real estate is a proven wealth-building machine, there are a number of bizarre, odd, and even weird things landlords learn once they’re in the middle of it.
If you’re considering becoming a rental property owner, here are five odd things to look out for before you begin. You might decide that retaining a third-party property manager makes sense.
1. Tenants Will Call You About the Strangest Things
You can expect calls about leaky faucets and faulty heaters, but some tenants will come to you with problems you never imagined that you would ever need to repair.
Some of the complaints will boggle your mind. For instance, some tenants might call in a panic to advise you about a spider in their bathroom. You’ll be expected to come and do something about it. Others might accuse you of sabotaging the thermostat to limit how high or low they can set it. And others may hold you to task over things you never promised — much to your chagrin.
2. You’ll Be Surprised at How Creative People Get With Rent Apologies
Another strange but frequent occurrence? The ridiculous reasons tenants provide for late payment of rent. Yes, some will simply say “my paycheck was late.” But more off-the-wall excuses can include the following:
- “My dog hid my wallet.”
- “The ATM ate my card, and I didn’t wish to disturb it again.”
- “I thought I already paid you.”
While some excuses may give you a chuckle, late rent is no laughing matter. You can reduce instances of such issues by hiring a property manager to conduct thorough tenant screenings.
3. Your Property Will Be Affected in Strange, Unexplainable Ways
Leasing means wear and tear. Sometimes, however, there is no rhyme to the damage.
You may find strange stains on the floor, cabinet doors installed upside-down, nail holes on the ceiling but none on the walls, bad paint jobs using off-the-wall colors, and missing appliances.
Although you can never be sure how or why tenants do such things, you can be sure that such instances highlight the importance of routine inspections when people move in and when people move out. But brace yourself since you might be surprised at what you see.
4. The “Passive Income” Isn’t Quite So Passive
Most people buy the dream of a rental house because it promises passive income — money while you sleep. The odd truth? You’ll work more than you think. From dealing with repairs to filling vacancies to drafting leases, being a landlord is a full-time job.
It will seem strange to call it “passive” when you’re so horribly busy. But once you hire a property manager, things will be more manageable.
5. You’ll Learn More About Human Behavior Than You Ever Wanted
The strangest thing about owning rental property is that you’ll get an in-depth look into human nature. Landlords are privileged voyeurs of the craziness of humanity.
You’ll see tenants who’ve never, ever cleaned an oven. You’ll also see whole walls painted in bright neon color schemes without your permission, and people with hoarding tendencies that can turn a two-bedroom into a cardboard-box jungle. Among other things, you’ll find some entitled types believing that they should be able to live in your rental unit rent-free.
Owning rental property is full of rewards: monthly rental income, property value appreciation, and long-term wealth-building potential.
But not much gets written about the strange, off-the-wall things that occur along the journey. From strange tenant calls to unusual property damage, landlords learn very quickly that this business is never dull. If you join the realm of investment property owners, you’ll do yourself a favor by hiring a reputable property manager to help navigate the off-the-wall occurrences.