New to being a landlord - what haven't I thought about/considered?

[Anonymous]

I've been a landlord in DC for 15 years and honestly have never once had a serious problem with any of my tenants, ever. At the same time, I haven't done any of the exhaustive credit checks, reference checks, and other stuff that so many others are recommending. Maybe that makes me an idiot, I don't know.

There's a whole lot you can learn about potential tenants simply by reviewing their social media. Especially if they're on the more professional sites like LinkedIn. I've done that, met with folks, and then gone with my gut.

Maybe I have too much faith in humanity, but generally speaking gainfully employed people with reasonable educations and presences on social media, who present themselves cleanly and pleasantly, and who can come up with the security deposit and first month's rent at the blink of an eye can be assumed not to have plans to become squatters.

I will say that the one thing that you do need to be keen to is the tenant who for whatever reason doesn't tell you when something's wrong in the rental. You can't fix a problem that you don't know exists. We try to preempt this by making it very clear to tenants that we WANT to hear from them on these things, and beyond that we provide a free monthly cleaning for our tenants as part of the lease. Not only does that help keep the place clean, our cleaner will tell us if there's a leaky faucet, etc.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:This is OP: really that bad? We are NOT in DC - I would never do this in DC. It's a very landlord-friendly red state. I'm in a college town with an abysmal rental market for professionals, with a small house in a very desirable neighborhood/good school district.

Y'all are scaring me

No. And I’m a landlord in DC.

The most important thing is to screen your tenants thoroughly. Meet them and require an application (including income and rental history) and a small fee (shows interest/they’re not wasting your time). Full background checks, credit checks, require first month’s rent and deposit, etc etc. Look at the law in your state on what you may request and consider; every state/city is different.

Make updates/small improvements to your place BEFORE a tenant moves in. These are things like touch up painting, replacing light bulbs, considering replacing any appliance that seems like it’ll go soon, etc. It is easier to do all that without working around a tenant. And don’t cheap out; it’s better to do these things now instead of getting a call at 11pm that the fridge broke.

Know that stuff will break and that’s okay. Don’t get too attached. It’s a rental now. But treat it and your tenants with respect— fix things ASAP, keep big ticket items serviced regularly, and keep in touch with the tenants (but not too much). Don’t assume tenants (esp if they’re younger) to know anything about home maintenance. If you expect some, discuss and put it in the lease. Some tenants literally will not figure out how to replace a lightbulb even if one is provided for them, so have a plan for things like that in advance. This includes things like gutters etc. Deferred maintenance can lead to big problems like leaks so don’t just “forget” about your rental. Have someone on standby who you can call and send over about little and big home maintenance issues.

Price your place appropriately. Look at comps in the area and try to match them. In a good market, you should get interest within a few weeks; if you’re not, it’s either a dead time (what that means depends on the place, but generally mid-summer or mid-winter) or it’s too pricey.

Also, I’ve never found a property manager I like, fwiw. Some people really rely on them. But often they take quite a bit off the top and don’t earn it.

A fee is a sign of a seriously sketchy landlord... you may not be one, but you're just asking for trouble w/that... the kind of people you're going to attract are not good.

Always the armchair idiots chiming in with uselessness.

As a fellow highly successful landlord definitely have the fee. 1) it cuts back on BS applications and 2) it costs about $60-$150 to pay to run a background + credit check on tenants.

DP
Use SmartMove next time $47 and they let them pay directly.

[Anonymous]

Most landlords underestimate the hassles and expenses involved, and overestimate their likely returns, especially if they fail to plan to occasional periods when the property may not be rented or when a tenant may fail to pay their rent and require eviction.

You'll be starting a business, which will require your time, focus, and attention; it's not a easy path to passive income like investing in stocks and bonds. It will be illiquid, require insurance, and while many tenants cause not problems and pay as agreed, others do not, and you can't always know in advance how any particular tenant will work out. Even if they start out strong, things happen in peoples' lives, and that can trickle down to you if they lose their job or otherwise find themselves in later financial difficulties - their problems can become your problems.

Some landlords are very satisfied with their businesses; others not so much. For many people, sensible investments in the markets yield better returns with less hassle and much less personal involvement, all with liquidity you don't have with real estate.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:This is OP: really that bad? We are NOT in DC - I would never do this in DC. It's a very landlord-friendly red state. I'm in a college town with an abysmal rental market for professionals, with a small house in a very desirable neighborhood/good school district.

Y'all are scaring me

No. And I’m a landlord in DC.

The most important thing is to screen your tenants thoroughly. Meet them and require an application (including income and rental history) and a small fee (shows interest/they’re not wasting your time). Full background checks, credit checks, require first month’s rent and deposit, etc etc. Look at the law in your state on what you may request and consider; every state/city is different.

Make updates/small improvements to your place BEFORE a tenant moves in. These are things like touch up painting, replacing light bulbs, considering replacing any appliance that seems like it’ll go soon, etc. It is easier to do all that without working around a tenant. And don’t cheap out; it’s better to do these things now instead of getting a call at 11pm that the fridge broke.

Know that stuff will break and that’s okay. Don’t get too attached. It’s a rental now. But treat it and your tenants with respect— fix things ASAP, keep big ticket items serviced regularly, and keep in touch with the tenants (but not too much). Don’t assume tenants (esp if they’re younger) to know anything about home maintenance. If you expect some, discuss and put it in the lease. Some tenants literally will not figure out how to replace a lightbulb even if one is provided for them, so have a plan for things like that in advance. This includes things like gutters etc. Deferred maintenance can lead to big problems like leaks so don’t just “forget” about your rental. Have someone on standby who you can call and send over about little and big home maintenance issues.

Price your place appropriately. Look at comps in the area and try to match them. In a good market, you should get interest within a few weeks; if you’re not, it’s either a dead time (what that means depends on the place, but generally mid-summer or mid-winter) or it’s too pricey.

Also, I’ve never found a property manager I like, fwiw. Some people really rely on them. But often they take quite a bit off the top and don’t earn it.

A fee is a sign of a seriously sketchy landlord... you may not be one, but you're just asking for trouble w/that... the kind of people you're going to attract are not good.

Always the armchair idiots chiming in with uselessness.

As a fellow highly successful landlord definitely have the fee. 1) it cuts back on BS applications and 2) it costs about $60-$150 to pay to run a background + credit check on tenants.

I used to rent and I never paid a fee, never would pay a fee and wouldn't let my kids rent from anyone who asks for a fee. I pay rent, you pay your expenses.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:This is OP: really that bad? We are NOT in DC - I would never do this in DC. It's a very landlord-friendly red state. I'm in a college town with an abysmal rental market for professionals, with a small house in a very desirable neighborhood/good school district.

Y'all are scaring me

No. And I’m a landlord in DC.

The most important thing is to screen your tenants thoroughly. Meet them and require an application (including income and rental history) and a small fee (shows interest/they’re not wasting your time). Full background checks, credit checks, require first month’s rent and deposit, etc etc. Look at the law in your state on what you may request and consider; every state/city is different.

Make updates/small improvements to your place BEFORE a tenant moves in. These are things like touch up painting, replacing light bulbs, considering replacing any appliance that seems like it’ll go soon, etc. It is easier to do all that without working around a tenant. And don’t cheap out; it’s better to do these things now instead of getting a call at 11pm that the fridge broke.

Know that stuff will break and that’s okay. Don’t get too attached. It’s a rental now. But treat it and your tenants with respect— fix things ASAP, keep big ticket items serviced regularly, and keep in touch with the tenants (but not too much). Don’t assume tenants (esp if they’re younger) to know anything about home maintenance. If you expect some, discuss and put it in the lease. Some tenants literally will not figure out how to replace a lightbulb even if one is provided for them, so have a plan for things like that in advance. This includes things like gutters etc. Deferred maintenance can lead to big problems like leaks so don’t just “forget” about your rental. Have someone on standby who you can call and send over about little and big home maintenance issues.

Price your place appropriately. Look at comps in the area and try to match them. In a good market, you should get interest within a few weeks; if you’re not, it’s either a dead time (what that means depends on the place, but generally mid-summer or mid-winter) or it’s too pricey.

Also, I’ve never found a property manager I like, fwiw. Some people really rely on them. But often they take quite a bit off the top and don’t earn it.

A fee is a sign of a seriously sketchy landlord... you may not be one, but you're just asking for trouble w/that... the kind of people you're going to attract are not good.

Nope. The opposite. Which is why the vast majority of any kind of landlord (small or corporate) requires a small application fee.

No, this is a literal red flag for scams. Don't pay fees to sketchy landlords.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:This is OP: really that bad? We are NOT in DC - I would never do this in DC. It's a very landlord-friendly red state. I'm in a college town with an abysmal rental market for professionals, with a small house in a very desirable neighborhood/good school district.

Y'all are scaring me

No. And I’m a landlord in DC.

The most important thing is to screen your tenants thoroughly. Meet them and require an application (including income and rental history) and a small fee (shows interest/they’re not wasting your time). Full background checks, credit checks, require first month’s rent and deposit, etc etc. Look at the law in your state on what you may request and consider; every state/city is different.

Make updates/small improvements to your place BEFORE a tenant moves in. These are things like touch up painting, replacing light bulbs, considering replacing any appliance that seems like it’ll go soon, etc. It is easier to do all that without working around a tenant. And don’t cheap out; it’s better to do these things now instead of getting a call at 11pm that the fridge broke.

Know that stuff will break and that’s okay. Don’t get too attached. It’s a rental now. But treat it and your tenants with respect— fix things ASAP, keep big ticket items serviced regularly, and keep in touch with the tenants (but not too much). Don’t assume tenants (esp if they’re younger) to know anything about home maintenance. If you expect some, discuss and put it in the lease. Some tenants literally will not figure out how to replace a lightbulb even if one is provided for them, so have a plan for things like that in advance. This includes things like gutters etc. Deferred maintenance can lead to big problems like leaks so don’t just “forget” about your rental. Have someone on standby who you can call and send over about little and big home maintenance issues.

Price your place appropriately. Look at comps in the area and try to match them. In a good market, you should get interest within a few weeks; if you’re not, it’s either a dead time (what that means depends on the place, but generally mid-summer or mid-winter) or it’s too pricey.

Also, I’ve never found a property manager I like, fwiw. Some people really rely on them. But often they take quite a bit off the top and don’t earn it.

A fee is a sign of a seriously sketchy landlord... you may not be one, but you're just asking for trouble w/that... the kind of people you're going to attract are not good.

Nope. The opposite. Which is why the vast majority of any kind of landlord (small or corporate) requires a small application fee.

No, this is a literal red flag for scams. Don't pay fees to sketchy landlords.

No. The application + fee happens after a potential tenant sees the place and meets either the landlord or their representation. An application fee is so much the norm that DC has specific statutory provisions on how much a landlord can charge for one. A typical fee is about $30-$50, and it's a huge red flag for any landlord if someone cannot come up with that amount.

There are obviously tons of real estate scams, which is a separate issue. No one should ever send cash to a person they've never met for a place they haven't seen-- particularly if the fee is something crazy like $500.

But overall, a fairly small application fee is the norm, and has been for decades-- for good reason.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:This is OP: really that bad? We are NOT in DC - I would never do this in DC. It's a very landlord-friendly red state. I'm in a college town with an abysmal rental market for professionals, with a small house in a very desirable neighborhood/good school district.

Y'all are scaring me

No. And I’m a landlord in DC.

The most important thing is to screen your tenants thoroughly. Meet them and require an application (including income and rental history) and a small fee (shows interest/they’re not wasting your time). Full background checks, credit checks, require first month’s rent and deposit, etc etc. Look at the law in your state on what you may request and consider; every state/city is different.

Make updates/small improvements to your place BEFORE a tenant moves in. These are things like touch up painting, replacing light bulbs, considering replacing any appliance that seems like it’ll go soon, etc. It is easier to do all that without working around a tenant. And don’t cheap out; it’s better to do these things now instead of getting a call at 11pm that the fridge broke.

Know that stuff will break and that’s okay. Don’t get too attached. It’s a rental now. But treat it and your tenants with respect— fix things ASAP, keep big ticket items serviced regularly, and keep in touch with the tenants (but not too much). Don’t assume tenants (esp if they’re younger) to know anything about home maintenance. If you expect some, discuss and put it in the lease. Some tenants literally will not figure out how to replace a lightbulb even if one is provided for them, so have a plan for things like that in advance. This includes things like gutters etc. Deferred maintenance can lead to big problems like leaks so don’t just “forget” about your rental. Have someone on standby who you can call and send over about little and big home maintenance issues.

Price your place appropriately. Look at comps in the area and try to match them. In a good market, you should get interest within a few weeks; if you’re not, it’s either a dead time (what that means depends on the place, but generally mid-summer or mid-winter) or it’s too pricey.

Also, I’ve never found a property manager I like, fwiw. Some people really rely on them. But often they take quite a bit off the top and don’t earn it.

A fee is a sign of a seriously sketchy landlord... you may not be one, but you're just asking for trouble w/that... the kind of people you're going to attract are not good.

Nope. The opposite. Which is why the vast majority of any kind of landlord (small or corporate) requires a small application fee.

No, this is a literal red flag for scams. Don't pay fees to sketchy landlords.

No. The application + fee happens after a potential tenant sees the place and meets either the landlord or their representation. An application fee is so much the norm that DC has specific statutory provisions on how much a landlord can charge for one. A typical fee is about $30-$50, and it's a huge red flag for any landlord if someone cannot come up with that amount.

There are obviously tons of real estate scams, which is a separate issue. No one should ever send cash to a person they've never met for a place they haven't seen-- particularly if the fee is something crazy like $500.

But overall, a fairly small application fee is the norm, and has been for decades-- for good reason.

nope. maybe in tenements, but not in normal situations.

[Anonymous]

I have been a landlord for 15 years. 5 tenants during that time period across two units. 4/5 were fantastic tenants. The last one took 10 years off my life and I have stopped renting the property after finally getting her out. It’s great when it’s great and an absolute nightmare when it isn’t.

[Anonymous]

Anonymous wrote:Most landlords underestimate the hassles and expenses involved, and overestimate their likely returns, especially if they fail to plan to occasional periods when the property may not be rented or when a tenant may fail to pay their rent and require eviction.

You'll be starting a business, which will require your time, focus, and attention; it's not a easy path to passive income like investing in stocks and bonds. It will be illiquid, require insurance, and while many tenants cause not problems and pay as agreed, others do not, and you can't always know in advance how any particular tenant will work out. Even if they start out strong, things happen in peoples' lives, and that can trickle down to you if they lose their job or otherwise find themselves in later financial difficulties - their problems can become your problems.

Some landlords are very satisfied with their businesses; others not so much. For many people, sensible investments in the markets yield better returns with less hassle and much less personal involvement, all with liquidity you don't have with real estate.

+1 million to the bolded, but really everything PP said here is spot on

[Anonymous]

Anonymous wrote:Conduct in person bi-annual inspections (with photos). Some tenants won’t tell you about problems either because they don’t know what to look for or are afraid of getting a rent increase for being “difficult.” Pay particular attention to any signs of water damage or leaks and pest issues. You also want to ensure the tenant is maintaining the place (cleanliness) and not making unapproved modifications. It shows you are serious about protecting your investment. Get a solid lease from real estate professionals in your city. A lot of leases leave important things out that you wouldn’t think of without having a bad experience. I would consider hiring a property mgr to start (I also agree most are terrible) but there is a learning curve. Maybe hire them for 2-3 years until you fee confident self managing.

Yes, I found a property manager type (really a real estate company) helpful for getting started— holding open houses, screening tenants, showing a draft lease form, drafting an application, doing a background/credit check. It was not as helpful for management and so I started doing that on my own quickly.

Also- depends on your area but my place is in a rental-dense, popular area and it got tons of not serious, “just looking” interest. Some of those people hadn’t even moved to the area yet and were checking out the place through FaceTime via friend or agent. They wanted to move in like 3 months instead of a few weeks. It would’ve been annoying to show the place so many times for that and the company dealt with all that, fortunately.

We did charge a low application fee on their recommendation— something like $20, just to screen out the unserious people. Other small landlords charge more to cover a background check.

[Anonymous]

Anonymous wrote:This is OP: really that bad? We are NOT in DC - I would never do this in DC. It's a very landlord-friendly red state. I'm in a college town with an abysmal rental market for professionals, with a small house in a very desirable neighborhood/good school district.

Y'all are scaring me

You sound ok then.
Just vet any potential renters really well. Dig into their social media and what not. If they have it blocked, tell them to unblock it or you won't even consider them.

[Anonymous]

Anonymous wrote:

Anonymous wrote:This is OP: really that bad? We are NOT in DC - I would never do this in DC. It's a very landlord-friendly red state. I'm in a college town with an abysmal rental market for professionals, with a small house in a very desirable neighborhood/good school district.

Y'all are scaring me

You sound ok then.
Just vet any potential renters really well. Dig into their social media and what not. If they have it blocked, tell them to unblock it or you won't even consider them.

That is psychotic.

[Anonymous]

Anonymous wrote:This is OP: really that bad? We are NOT in DC - I would never do this in DC. It's a very landlord-friendly red state. I'm in a college town with an abysmal rental market for professionals, with a small house in a very desirable neighborhood/good school district.

Y'all are scaring me

Everyone loves a blue state until housing rights are protected. SMH.