Several years after I became a “Full-Fledged” landlord, I found myself trying very hard to make my tenants happy to live in my houses.  I didn’t realize it then, but this will never happen!  It seemed like the more I tried to please, the more my tenants wanted.  For example, some tenants rented my economy units that had no carpets.  Several of my lower income houses have carpets in only the living room and hallways. Immediately the tenants began asking for carpets in the bedrooms too. Several asked if they could repaint because they didn’t like my colors. I always use a basic off-white paint inside.

Many of the requests I got involved lots of dollars.  They would ask for rear yard fences -where none existed when they moved in.  What generally happens in this case — They  acquire a dog or decide to baby-sit small children in the backyard for extra income.  Don’t misunderstand what I’m saying here — I’m very much in favor of rear yard fences,
front ones too for that matter.  What’s missing in all of these requests, however, is the “CONSIDERATION”.   That’s the contract term for the extra money.  The question is who should pay for these special add-on requests?  I agree that houses without carpets are like cheeseburgers without fries.  But as you probably already know — McDonald’s charges extra for fries — And so do I for more carpets.

LANDLORDING IS A PEOPLE BUSINESS

Operating rental properties and dealing with the tenants are not separate jobs.  The fact is they’re inseparable parts of landlording.  I owe most of my real estate success to my landlording abilities.  Some folks don’t agree with me on this issue — They argue that professional property managers get paid a handsome percentage of the gross rental income to relieve owners of this thankless task.   Many owners end up relieved of there property instead!

The good news is — Owner-landlording is a profession that will help you to achieve financial independence and a quality of life second to none if you choose to participate.  A long-time investor friend of mine puts it like this — “If you are comfortable with the role of ownership and management, and don’t allow yourself to be intimidated by the responsibility for setting down the rules by which tenants may live in your properties, you will find as many others have — That owning and operating small rental properties provides a vehicle for self-employment and self-expression that is difficult to match in our society today. ”

BESIDES MAKING MONEY, being a successful landlord provides many sought-after personal benefits.  For example, you can provide an excellent quality of life for yourself or your family.  You can live anywhere you choose and set your own work schedule.  You can spend additional time with your hobbies and do those personal things that never get done when you work for someone else.  Being your own boss is the envy of every W-2 wage earner.  Just about everyone dreams of making a big income working for themselves.

I know many small-time and medium-size property owners who consistently earn $100 an hour and even more doing landlord work: Landlording is the key ingredient to making big money for “Do-Lt-Your-self” investors.  Owners of small rental properties who don’t learn landlording often throwaway a fortune because they allow the tenants to run their business and their buildings.  That’s a very poor choice, believe me!

TENANTS CAN MAKE OR BREAK A PROPERTY

It’s my Opinion that small real estate operators fail much too often because they never learn or understand landlording.  Almost all investors I’m in contact with are owners of houses and small apartment buildings. Even if your basic investment strategy is to buy, hold and sell — Tenants will normally be involved in the process.  Tenants can make or break a property.  Owners who pay little attention to landlording skills are basically allowing property managers or the tenants to have control over their investment dollars.

I can assure you based on my own personal experiences — A dumb landlord is absolutely no match whatsoever for the liberated “Rock-N-Roll” tenants of today.  You gotta know your stuff, now – — Because the tenants know theirs.  Remember this important fact Tenants are the lifeblood for a landlord.  Tenants are a landlord’s customers.  Almost every business has customers.  They are a very necessary and vital part of owning and operating rental properties because they supply the revenue. Obviously a landlord’s problem would be extremely serious if he or she didn’t have tenants to pay the rents.

As a rule, most small investors I know attempt to build their real estate portfolios with a small amount of cash and a large amount of personal effort.  This is what I teach because it’s the same method I use.  Unlike the cash rich syndications, small investors substitute personal skills in lieu of money.  They have the advantage of learning the landlord job from the bottom up — By doing it themselves.

ALWAYS TAKE CARE OF TENANT BUSINESS PROMPTLY

Good landlord’s always act first — Rather than re-act later!  Don’t fight and argue with tenants anymore than you would fight and argue with your boss over work requirements at your job.  Obviously discussions are all right, but fairness should always prevail.  Landlords are the bosses of houses.  They make the rules for tenants who live there.  Never compromise the issue of WHO’S IN CHARGE.  When tenants have the upper hand living in your rental property, you’ve got serious problems.

How do I know this, you ask?  At least half of the properties I own today were purchasd fom highly motivated sellers wo wanted more than anything else to get away from their tenants.  I made that possible for them—But at a reducd price of course!

Most beginners don’t fully understand the true value of learning to be a good landlord.  As you may have guessed by now — It’s a serious business.  Not only does it involve the daily management of your tenants — It also has a great deal to do with your long-range real estate profits.

LANDLORDING CAN BE LEARNED VERY EASILY

One of the many advantages of owning and operating rental houses is that individuals without any special skills or advance training can become very successful by substituting personal efforts (labor) instead of spending money to hire things done.  It often takes new owners twice as long to do a job, but remember it’s also training, in addition to the owner’s “free labor”.

You don’t have to agree with me about any of this. You don’t even have to like it –Please keep an open mind.  Someday if we meet, you may even thank me for the help.  Hands-on operators, the do-it-yourselfers, can put the big guys to shame in terms of building net worth.  Call it tender loving care if you wish or whatever else.  Nonetheless, it works!  There is indeed a great deal of truth to that old Chinese proverb which says ___ “The best fertilizer in the world comes from the owner’s shadow.”