The 5 things I wish I knew before becoming a Landlord...

These are the 5 things I wish I had known before becoming a landlord, and why learning these NOW can make you a better real estate investor in the long run. Enjoy! Add me on Instagram/Snapchat: GPStephan

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First, I wished I had treated it more like a business rather than a hobby.
When I first started, I was 21 years old. At this point, I had been working as a real estate agent for a little over 3.5 years and even though I had been doing a lot of rentals for OTHER PEOPLE, I had never done it for myself. All of a sudden you have a hard time thinking objectively, you throw your own emotions into the mix, you have self doubt, you worry if what you’re doing is right, and there’s a blurred line between running this like a business vs a hobby…and when I started, I ran it like a hobby. Don’t do that.

This brings me to my second point…keep things professional, and STICK TO THE CONTRACT.
In the beginning, I treated the contract more like a guide…as long as you roughly followed it, that was fine. No, NO, NO. Do NOT do this. Enforce the contract word for word. The contract is written for a reason - there should be no misinterpretation from what’s allowed and what’s agreed on. This clarifies everyone’s expectations for not only the tenant, but also for the landlord. When that contract is signed, all parties must abide by it.

The third thing I wish I knew was that I’d need to be on call 24/7.
If there’s ever an emergency, I have my phone on me to handle anything as it comes up. Most situations that come up, even though I’m technically “on call 24/7,” just aren’t that urgent; usually little minor things that are usually sent over email and you can handle them when you have the time.

The fourth thing I wish I knew is that anything that can possibly break, will break.
As a landlord, you walk into the brutal reality that most people simply don’t care about how they live or how delicate something is. Just like you baby proof a house, you will need to renter-proof your house. This means making things indestructible. If something is likely to break, make sure you don’t spend too much money on it. Just buy good quality DURABLE, not high end BREAKABLE. This will prevent you from fixing and buying new things after every tenant.

The fifth thing is that the biggest learning experience of all of them is simply dealing with people.
On a bigger picture, deeper down, you really have to learn to communicate effectively, be ok with saying no, be okay with standing your ground, while still being able to hear the other person out. You need to learn how to explain yourself in a way that makes sense to the other person, without coming off as insensitive or inattentive. The other person needs to be heard and their thoughts validated before you can say what you want. Just like anything else, people skills are incredibly important and can make a huge difference in whatever business your in.

Suggested reading:

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[CommandoMaster]

Lesson here is: Don't try to be friends with everybody. When money is involved, keep things professional and follow the rules.

[gregcarlson]

1) Treat it like a business!
2) Stick with the contract
3) Be on call 24/7
4) Anything that can break...will break
5) It’s a people business

[beaviswealth]

It’s unbelievable how many houses are rented out without a contract... even if it’s a close friend or relative, it’s better to be safe than sorry!

[jonathancrump]

When they come to look at your place, Look at their car inside and out! This is what your rental will look like when they leave!

[agoo]

Your tenants should never know that you are the landlord always perceive your self as the property manager. Then you wouldn't have to be worried about the whole age thing. That's what I do and it works.

[MikeRosehart]

I have a plumbing plan on most of my bigger rentals. I pay 21/month for unlimited plumbing calls and fixes for anything. My tenants have the number on the fridge. It’s great for multi-family.

[rickkern]

Rentng to friends has backfired on me every time.

[sirraymondluxuryyacht]

My friend rents his basement suite to an unmarried mother who has missed multiple months rent and seems to have one disaster after another in her life. She is waiting on a large insurance payout from a car accident that wrecked her back, but I'd guess that even if/when she gets it, she will not catch up on the rent owed....rarely do people repay kindness/patience - they just expect even more as if they are entitled to it

[marksoberay]

#4 put in lease required 2x a year inspection, then address and bill for damages

[rickkern]

When friends ask if I have any rentals open I say I do not manage my apartments, it goes through my property managers. I manage some and my property managers manage some. This is kinda true---grin----I have even been rent scammed by relatives. Never Ever rent to relatives or friends if you want to collect rent.

[bobbyzapp]

Bobby Zapp here. I am a 25-year real estate investor. Renting properties has been amazing. But my mentor taught me right up front that it was a business, so never get emotional. Continue to learn and expect your business to have problems. We are problem solvers.

When I started I was very young, I would tell the tenants I was managing the property for Someone else.

So the tenants respected me even though I own the property. I used my LLC on contracts. I always meant what I said, and followed the lease. Always go with your gut feelings with people, which means don't let them control your emotions. Money is not worth giving away your Peace.

[lxs]

It's so weird how before I watched this video, my dad gave the book "how to win friends & influence people" a while back. It's been sitting on my side table for a couple of days now cuz I've been meaning to read it. Hearing you mention that I should read the book is such a coincidence! I'm going to take it as a sign and just start reading!

[dennispike]

"Renter Proof", ROFL, this is so true!! My parents own rentals and the tenants always found ways to destroy stuff by accident. Not everyone was raised by good parents. And if they don't own it, they don't care.

[tetewilson]

The way how he said "They would magically find some way to break it" just took me out.

[SpicerCapital]

The first tenant I had to evict cost me more than year’s returns. They totally destroyed the house. Used one of the bedrooms as their dogs’ pen ...which they never cleaned up after. 😒 🐕 💩

It was awful! These are some amazing tips that I wish I had known before I started as well.

[crand]

When you get someone to sign the contract talk about eviction procedures and what's going to happen if they don't pay rent. Ten day notice, etc.

[austinblair]

You're inspiring. I wanted to be a landlord for years but I was scared and backed off the idea. Now I'm motivated to give it another shot. Thank you!

[tacsystems]

I broke the bell by smashing it. Fix it slumlord. 😂

[lw]

True. After paying the late fee once, tenants will pay on time. Notify them of violations in writing. Get a good security deposit, when they decide to leave without paying the last month's rent. Most importantly, learn from previous problems and include them on the next lease. It's a working document, and it can be as long as you want.

[ginacardarella]

Omg! I love it you are so right--Ive been a landlord on a small scale for 20 years listen people he knows what he is talking about... thinking about buying more property but first listening and reading about realestate as much as I can find --Please do more video thank you