Nothing teaches you better than your own experiences, Bookish knowledge alone is not enough. You must do something to know everything about it. The same is true for landlords. Unless and until you handle all the challenges yourself, you cannot hope to be successful as a landlord. This is because there are always unseen challenges and unexpected events that cannot be taught to someone who has a desire to become a successful landlord. Here are 5 common surprises experienced by most people when they become a landlord for the first time.
You cannot take people on face value
If you look at the people and the deals as an outsider, everything appears to be streamlined and organized. It is only when you join the circus as a landlord yourself do you start to learn the loopholes in this business. You get to see the real faces of the tenants, the clutter, and truth behind credit scores. Be ready to face the disorder and all the chaos that comes with being a landlord.
There is no end to repairs
You know that things can break down in life with time and frequent use. But what you do not know is the high frequency at which you will receive requests and complaints from your tenants. Never expect your tenants to take care of the structure and the appliances like you do. Be mentally prepared for this nasty surprise in the form of break downs in your property every now and then. In fact, you will have to set aside 10% of your monthly rental income for repairs.
Lies and deceit
You may think that it is all very straightforward as a landlord. Wait till you become a landlord yourself. You will be surprised how easily people speak lies and try to cheat you as a real estate investor. It is not just tenants hiding truth and giving false information as you find realtors, vendors, contractors, and even officers in government agencies lying with you. The first lesson you will learn as a landlord is to not believe others and cross check the facts yourself.
You will need a strong will power
You are shaken inside when you see people saying or doing the exactly opposite of what they are supposed to say or do. It will make you feel disgusted and only a strong will power will keep you standing as a real estate investor or landlord. It is your strong desire to succeed as a landlord that will keep you functioning in this murky business.
People will be suspicious of you
You think of yourself as an honest and reliable individual, but you will be surprised to find people being suspicious of you when you become a landlord. People will approach you cautiously and hardly believe what you say or do. It comes as a shock to you, but you will have to get used to be viewed suspiciously by others in this business.
There is no need to rethink your decision of becoming a landlord after knowing about these surprises. They are a part and parcel of this business and you will get used to these and many more surprises that are in store for you as a first-time landlord. Treat them as challenges and you will find that you will find that you are adapting well to the demands of this business.
If you’d like to talk more about property management, or you need help with Everest Property Management, please contact us at Everest Realty.
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As a top producing Realtor and Property Manager; Terry specializes in sales, extensive construction homes, rentals, REO’s, short sales, and all aspects of Real Estate. After graduating the University of Michigan with a master in MBA, Terry continued his endeavor and now has over 15+ years of experience in the Real Estate world. If there is anything that has to do with Real Estate and sales, you can always be sure of Terry to provide important, specialized knowledge.
