Are you thinking about being a DIY landlord after you purchase your first multifamily investment property? If so, even though this may seem like a good strategy right now, the reality is that you shouldn’t become a DIY landlord because there are a variety of things that most DIY landlords actually hate about land-lording.
#1 – Having Tenants That Tell Lies
Let’s face it, the longer you own multifamily properties and are land-lording, it’s highly possible that you’re going to encounter some tenants who tell you lies. Sadly, some tenants will lie when they can’t pay their rent on time while others will lie or make credit excuses for why they’ve broken their leases.
To avoid falling into the trap of renting to tenants who tell lies, it’s best to thoroughly research a prospective tenant and learn more about their rental history because this will give you a good idea of the quality of the person that you’re going to be renting to.
#2 – Never Being Able to Truly Take A Break
Even though you may be able to get away for the occasional weekend, or vacation, the reality is that when you’re a DIY landlord you will never truly be able to take a break from your responsibilities as a landlord.
Most landlords are constantly thinking about what their properties need or collecting rent from tenants who haven’t paid, so it’s quite literally impossible for them to walk away from their properties without truly being able to put their business to bed.
#3 – Hiring Contractors
It’s impossible to think that during the years that you own investment properties you’re not going to need to hire a contractor.
Repairs are a fact of life and it’s likely that you will need a contractor to do that work for you. Sadly, most DIY landlords hate having to hire contractors because there’s a lot of shady contractors out there who are unreliable and don’t perform the work that they are hired to do.
Thankfully, with the Internet, you have more resources at your disposal to fully research a DIY contractor before hiring them but for best results with eliminating having to hire contractors, it’s best to a hire property management company to professionally manage your multifamily property for you.
#4 – Dealing with Water Leaks
Water leaks are absolutely horrible because they always pop up at the worst times, especially when you’re a DIY landlord! Imagine getting called at 3:00 am by your tenant informing you that their roof is leaking. This is the plight that a DIY landlord has to face.
Besides roof leaks, it’s also possible that you may eventually face leaky plumbing including leaky faucets, sinks and other plumbing in your multifamily property. Unless you plan on becoming a proverbial “Mr. Fixit”, it’s best to hire a property management company to fix those water leaks for you.
#5 – Tenant Drama
Part of the day to day life of a landlord is also having to deal with tenant drama. This has also been described as a “train wreck” in some cases. It’s possible that you will be able to see all of the problems that are going on with a tenant and not be able to do anything about it because you’re just their landlord and are providing them with a place to live.
#6 – Being The “Bad Guy”
Another thing that most DIY landlords absolutely hate about land lording is being the “bad guy”. This can happen in a variety of ways but the most common is when a tenant doesn’t pay their rent on time, the landlord will have to collect that rent and risk their relationship with their tenants.
#7 – Keeping Up with Insurance
Dealing with Insurance when you’re a DIY landlord can many times be like running a race because laws are always changing, policies are canceling and you have to stay on top of insurance to protect your best interests.
#8 – Staying Organized
There’s no denying that owning multifamily properties is a great way to build wealth but one rule that you should always follow is staying organized. This is vital because there’s going to be a ton of paperwork involved with managing your own investment properties and you’re going to have to find a way to stay on top of it all or risk getting frustrated and overburdened with a mountain of paperwork that needs to be filed and dealt with at the worse times.
#9 – Being Your Tenants “Baby Sitter”
Your kids may be grown and it’s just you and your spouse but when you own multifamily property it’s possible that you may have to become a “baby sitter” for some of your tenants. This means that you will have to enforce your lease and make sure that your tenants do things that you would never do like treat the rental property like a dump or cause problems with other tenants.
#10 – Refinancing Your Multifamily Properties
The longer you own multifamily properties, it’s quite possible that you will want to refinance them to get better terms or rates on your loans. This is to be expected but refinancing can also be a bear because there will be a new stack of paperwork for you to fill out.
#11 – Eviction and The Aftermath of The Eviction
No landlord enjoys evicting their tenant but what can be worse is having to deal with the aftermath of eviction. This can be anything from having to move your tenant’s belongings that they left behind out of their former unit to deal with the destruction that they caused to the property.
#12 – Dealing with The Reality of Capex
When you own a multifamily property one thing to keep in mind is that it’s literally like an old ship that’s falling apart and needs repairs.
Over the years that you own your property, it’s going to need things like a new roof, windows and driveway so it’s best to always budget for these things or get caught unprepared when your building needs repairs that you cannot afford.
As you can see from the twelve things that DIY landlords hate about land-lording, there are a variety of things that the average person hates about managing their investment properties themselves.
What’s the solution to the problem? It’s simple, avoid being a DIY landlord and hire a property management company.
A property manager will save you the time, money and hassle of having to manage your investment property yourself.
Thanks to the internet, you can easily research property management companies in the city or town where your investment property is located.
Take the time to fully investigate a property manager before calling them. Your research should include looking for reviews about the company on websites like Google My Business or Yelp so that you can learn more about their services and verify if they will be the right company for you or not.