Some people think being a landlord is a great way to save money, but when it comes to multiple properties, it’s not fun, and it’s much less profitable than those who are in real estate make it out to be. While there are benefits to owning and investing in property, but self-managing can be a nightmare. Here are a few reasons why you shouldn’t be a landlord, especially if you value your time and your sanity.
First, as stated initially, if you’re going to self-manage, you can go ahead and kiss your free time goodbye. You can forget taking a vacation, weekends off, booking dates, and getting sleep. that’s because, tenant and renter inquiries will essentially come at all hours, and it’s quite a mess to deal with, that’s for sure.
It is also a huge job, and it’s essentially a full-time job. Despite it being mostly customer-service based, it actually involves marketing, leasing and screening, bookkeeping, doing some of the repairs and handy work, and even property management and inspection. Do you want six full-time jobs? Well, if you love yourself and your sanity, you don’t properly manage on your own.
Then, let’s talk about the mental draining, shall we? Being busy is one thing, though, in the job that you’re in, you’re going to deal with tons of stress. It doesn’t matter how good or how perfect the properties are, or even how good of a landlord you are, you’re going to get tenants that are demanding, and those with drama. There are a million reasons why some people can’t pay their rent, and it can be awful to deal with, and a total mental drain for yourself.
You also can’t be objective. When you’re that close to investment selection, supervising the rehabs and improvements, and accepting tenants and managing the properties, you’ll start to realize that emotions are there, and they come into play, and when you allow emotions to influence financial decisions, this does lead to a lot of risk in many cases, and it is a very risky thing. It’s better to just stick to looking at the numbers rather than looking at the property. One thing to always work to avoid is falling in solve with any property because this is how judgment gets clouded.
Finally, it’s super risky. that’s because of the fact that you’re going to be dealing with not just the physical aspects of job sites, but also dealing with tenants and collecting rents and dealing with tenants who are angry, and who might have dogs that are angry too. It’s something that really isn’t financially liable for those, and being a DIY landlord is super risky. If you want to put your life and limb in danger because of this, you should definitely consider it, and you should definitely put yourself there. But, if you love yourself and you don’t want to be a DIY landlord, you should definitely consider some alternatives.
Now, there are some great ways to get the benefits of real estate investment without having to be the landlord for the property. You can invest in funds, those the turnkey rental property investments, private lending, outsourcing the management, or partnering up with others who do the work. In reality, this can cost you some money, but if you learn how to become better at watching for this, and by smartly choosing who you’re going to let do the dirty work, it can make a world of a difference, and help you immensely.
When it comes to real estate investments and the like, you should make sure not to personally manage your properties. If you value your time, money, and personal sanity, you don’t do this, because let’s face it, dealing with the general populace is a nightmare. If you want it to be truly passive, you get out of this, and if you don’t want to have to put money into a potentially dangerous job, then you should make sure that you take the time that is necessary to prevent this from happening, and in turn, you should make sure that you’re smart about how you handle your properties.