Top 12 Drawbacks to Landlording

Let’s dive into twelve reasons why being a landlord can be more trouble than it’s worth, with real-life anecdotes highlighting the struggles property owners face.

1. Lengthy and Costly Eviction Process

Have you ever had to cut a vacation short to fly to an eviction proceeding? And once there, find out the tenant did not show up, or was able to make a last-minute extension? Because we have…Not fun!

“Evicting a tenant was the worst experience of my life. It took six months and countless court visits, not to mention the legal fees!” – Local landlord

• Time-Consuming Process: Evictions can drag on for months, requiring multiple court appearances and extensive documentation, all while the tenant continues to occupy the property without paying rent.
• Legal Complications: Navigating the eviction process requires a thorough understanding of landlord-tenant laws, which can vary significantly by location. Any misstep can delay the process further or even result in the case being dismissed.
• Emotional Toll: The adversarial nature of evictions can be stressful and emotionally taxing, especially if you have had a good relationship with the tenant in the past. Confrontations and disputes can take a significant emotional toll on landlords.
• Financial Burden: Besides the immediate loss of rental income, landlords must often cover court costs, attorney fees, and sometimes even repair bills for damages caused by disgruntled tenants during the eviction process.
• Property Damage: In some cases, tenants being evicted may intentionally damage the property out of spite, leading to additional repair costs and further delays in re-renting the unit.
• Re-Renting Challenges: After an eviction, the property might require extensive cleaning, repairs, and renovations before it can be rented out again, further prolonging the period without rental income and adding to the financial strain.

2. Bad Renter Blues

Smoking, partying, aggressive dogs, children that are out of control, broken appliances, and Police issues. Think about the wildest person in high school and renting out to 30 of them. Tenant screening and income requirements can only get you so far.

“One tenant left the place trashed and skipped out on three months of rent. I was left with a huge mess and a financial hole.” – Local landlord

Problem Tenants – Dealing with tenants disrespecting your property is frustrating and costly.

Troublesome Tenants – Unreliable tenants can lead to financial instability.

3. The Challenge of Changing Laws

Does your lease document protect you to the fullest extent of the law? Or are there things in your lease not compliant with your jurisdiction? It can be time-consuming and overwhelming at times.

“Keeping up with changing regulations is like having a second job. One mistake and you could face hefty fines or lawsuits.” – Local landlord

Legal Compliance – Understanding and adhering to laws requires constant vigilance.

Changing Laws – Staying updated with new regulations is a continuous challenge.

4. The True Cost of Repairs

$150 to get a plumber to come out to your site just to find out someone needed to replace a filter or plug in a machine. Expenses can mount very quickly if you are not frugal and aware of the best maintenance schedule for your big-ticket items.

Natural disasters can make big-ticket items, huge ticket items.

“I had to replace the entire HVAC system out of the blue. It was a $8,000 hit I wasn’t prepared for.” – Local landlord

Upkeep Costs – Regular maintenance and unexpected repairs add up quickly.

Maintenance Expenses – These costs often exceed initial estimates, straining your budget.

5. Unexpected Repairs

On any 4-day holiday weekend, you will likely have to take time away from your family or friends to deal with a fresh problem that needs an urgent result. From burst pipes to electrical failures, unexpected repairs can drain your wallet and disrupt your life.

“A pipe burst in the middle of the night, flooding the basement. I had to deal with the mess and the repair costs immediately.” – Local landlord

Emergency Repairs – These situations require immediate and costly interventions.

Surprise Repairs – Sudden issues can disrupt your daily routine and financial planning.

6. Plumbing Issues

You have to keep in mind that unlike homeowners, renters do not pay attention to possible plumbing problems before they flare up. Slow leaks become major leaks that become larger issues and you don’t know about it until you see large water/sewer bills, or worse, major property damage.

“Plumbing issues seem to pop up constantly, and they are never cheap to fix.” -Local landlord

Plumbing Problems – Leaks, bursts, and clogs require immediate attention and can be costly.

Leak Repairs – Timely repairs are crucial to prevent further damage and expenses.

7. Property Damage

Whether intentional or accidental is an inevitable part of being a landlord. Renters will always explain an issue has been there from when they moved in, or be unwilling to pay for an expense because they deem it as typical “wear and tear”. Do you want to fight a battle or do you want to take that expense?

“A tenant punched a hole in the wall out of frustration. Fixing it was neither cheap nor quick.” – Local landlord

Damage Repairs – Repairing damage can sometimes be hard to initially identify or find. Costly and time-consuming.

Tenant Damage – Often leads to conflicts and insurance claims.

8. Tenant Troubles

Managing tenant issues is a constant headache, from disputes to maintenance requests.

“One tenant would call me for every little thing, even stuff they could easily fix themselves. It was exhausting.” – local landlord

Tenant Issues – Constant complaints and maintenance requests can be overwhelming.

Tenant Complaints – Managing disputes and addressing concerns takes significant time and energy.

9. Late Rent

You will inevitably have tenants that ignore rent and not communicate their non-payment. Your bookkeeping has to be tight and communication has to be swift to ensure this will not continue.

“Chasing late rent payments every month was incredibly stressful. It felt like I was constantly fighting to get paid.” – Local landlord

Rent Delays – Inconsistent payments make it difficult to budget and plan.

Late Payments – Following up on late rent is time-consuming and stressful.

10. Landlord Stress

The pressures of managing a rental property can lead to significant stress and anxiety.

The constant worry about property issues and tenant problems took a toll on my mental health.” – Local landlord

Landlord Anxiety – The emotional toll of being a landlord is significant.

Management Stress – Balancing personal life with property management is challenging.

11. Preparedness Planning

Having an accountant and attorney on retainer for ad hoc questions are usually needed. Being prepared for emergencies is essential but adds another layer of complexity.

“Having an emergency fund saved me when unexpected repairs came up, but it’s hard to keep it stocked.” – Local landlord

Emergency Prep – Financial and logistical planning for emergencies is crucial.

Crisis Planning – Having a plan in place can mitigate stress and financial strain.

12. Vacancy Issues

When a tenant moves out the last day of the month and it needs to be cleaned and painted before a realtor can start showing the unit. Every month will ensure that the unit will not be profitable for that year. Renting in a more suburban or rural market can many times leave your property losing money on the year if it is not leased up quickly.

“Vacant properties are not just empty spaces; they are missed opportunities and a drain on your resources.” – Real Estate Investor Forum

Effective Marketing Techniques: Utilize targeted advertising, social media platforms, and professional photography to showcase the property’s unique features and attract potential tenants.

Tenant Retention Strategies: Prioritize tenant satisfaction by promptly addressing maintenance issues, fostering a sense of community, and offering incentives for lease renewals.

Conclusion

Landlording takes grit.

Landlording is not passive income.

Think about how much your hourly wage is before allocating hundreds of hours to something that you may not like, or be skilled at. This is why I buy bigger properties and let the experts manage the tenants so I can enjoy the things that matter the most to me.