Things I Don't Like Being a Landlord

My decision to venture into real estate had, in part, been based on a dream — a dream of being able to just sit back and do whatever I wanted to while the rent checks rolled in.

So what is so bad about being a landlord?

1. The Phone Calls

When you become a landlord, your phone begins to ring. Sometimes that can be good; other times it can be bad. Good or bad, there comes a time when you’ll be ready to throw your phone in the river because it never seems to stop ringing.

And the more you grow, the more your phone rings.

2. The Attitudes You Deal With

It is amazing what non-real estate people think about what I do. I can’t count the number of times when I tell folks that I am a landlord, and they instantly reply, “Oh you’re a slumlord.” 

3. Being the Lone Wolf

Being a small landlord generally means being out on your own. No longer can you hang around the water cooler and gripe with your co-workers. Griping seems like a simple thing, but being able to gripe with like-minded people is important. It is a sort of therapy. It releases tension and steam.

4. The Misunderstandings

Sort of like being called a slumlord, many people have a complete misunderstanding of what it is I do. They seem to think that being a landlord is just about collecting rent. And while that is part of it, they do not understand the efforts I have made and the business I have developed to be able to collect that rent.

5. The Paperwork

The paperwork that comes with this job is overwhelming. There are leases, move-in forms, move-out forms, work orders, receipts, invoices and the list goes on and on.

The problem is, it all must be done to run your business properly. At first, you will likely to be able to handle most of this yourself. But as you grow, you will need help. Do not neglect to spend the money for this help; otherwise, you will become a paper-pusher rather than a landlord and investor.

6. Everyone Thinks I’m Rich

People tend to hear the word “landlord” and instinctively think of money — and that I have lots of it. While I may have a bit of equity here and there and rents checks coming in, much of that goes right back out. 

7. Everyone Tries to Get Into My Pocket

Tenants want breaks on their rent. Contractors inflate their prices, and the tax man is always around and coming up with something new. Every day someone is trying to dig deeper in my pockets, and one of the toughest parts of this job is keeping folks’ hands out of it.

8. The Constant Negotiation

Everybody always wants to negotiate. Applicants want to negotiate my rental criteria. Tenants want to negotiate the rules. Property owners want to negotiate prices. Being a landlord is being in a state of constant negotiation. This is one of the major changes of leaving the 9 to 5 world. And I do not think it will ever stop until I get out of the business. Stand firm and learn how to do it. If you can’t, you are in for a rough time.

9. The Bad Tenants

This is perhaps the worst part of the business. Even after 15 years and lots of lessons learned, a bad tenant still comes along every once in a while. Usually something happens in their lives, and they turn bad. They lose a job or fall off the wagon, something neither they or the landlord saw coming, but they take it out in part on you and your property. They stop paying rent, force an eviction and perhaps destroy your property. This is perhaps the worst of the landlording business. And nothing I have learned so far is completely effective at eliminating them.

Life as a landlord can’t really be all that bad. And, in fact, it is not. I certainly do not wish I had never gotten into real estate, and I do not think I could ever go back to the 9 to 5 world again.

So if you want to make the jump into landlording, by all means, do so. Just go in with your eyes open, and understand that not everything is wine and roses.