So the weather has finally cleared and it looks like a nice day in West Central Paradise, and Maryan and I spent the day doing the early spring cleaning, reading old (really old) seminar notes and newsletters about being a Landlord. I’ve never seen more “nevers” and “alwayses” since the last election speeches.
And I think I had forgotten some of the early stuff we had learned about being a landlord. Never let the tenant move in until they have the utilities in their names. Never allow anyone to move in without first, last and security. Always post a three day notice on the first day after the grace period. Never fix anything and lie to the tenants, telling them your are the property manager.
When you are first learning the landlord game, you look for laws, rules and tricks, things you can do consistently because you do not know what to do. No one prepared you for this. It’s like being a parent. Everyone thinks they can fly by what they have seen people (their parents, friends who are landlords) do and make it work.
If that were true, gatherings of landlords would be joyous events with everyone talking about how happy they are because they just bought a new house and have a wonderful tenant. I have NEVER been to a gathering where landlords did anything except talk about how bad tenants are.
So let me confess. Little by little, I have gotten away from the hard and fast rules of always and never like I read this afternoon and have developed ways to approach this as a business that rewards good judgment. Maryan has already blogged that I have written an article called “Keep Your Friends Close and your Tenants Closer,” which we are rescheduling as an article in this series.
We have started a program for people–who do not have first last, security and utility deposits in this recession–to loan them money for the utility deposit so they do not have to wait until they have the cash to move in.
It is a business decision, requires special structuring of and language in the lease and involves a risk. And we expect tenants to be straight with us. So we do not understand how such a relationship can be built on lying to them that we are the property manager.
But, in fairness, there are some always and never things about being a landlord.
First, know and obey all pertinent laws. This can knock you out of the game fast and forever.
Second, understand this is a business, and if you run it well all nature of good things will happen. And, no matter how good, objective and caring you are, there will also be challenges and tests.
Third, as a business, there will never be a static, fixed routine that you run the business by. Things will change with or without you. With is less painful. The way we fill vacancies today is completely different than ten years ago. In some ways it is easier, but it sure is different.
Fourth, it is a thinking game. You must constantly be challenging assumptions and the way you do things. I have actually lost count of the number of houses we have rented to people who have never stepped foot in the house, using techniques that would have been impossible just a few years ago.
Finally, eternal vigilance and learning are crucial for freedom and in running a business. Join your local real estate groups; use the Internet to keep up to date. And in the rest of this series, let me suggest some of the ways to keep up with the profession. Not a lot of never and always, but some ideas for you to think about. It is a thinking game. More so today than ever before.
Tags: bad tenants, being a landlord, election speeches, grace period, joyous events, last election, maryan, parents friends, seminar notes, spring cleaning