Friday, February 16, 2024
What’s stopping you from becoming a landlord? The idea can evoke both excitement and trepidation in equal measure. On one hand, the allure of passive income, wealth creation, and financial freedom feels like a ticket to freedom. On the other hand, tales of nightmare tenants, property damage, and eviction woes can send shivers down your spine. But are these horror stories truly representative of the reality of real estate investing, or are they just a small fraction of the bigger picture?
We’ve all heard the stories. The man who used the basement floor as a litter box for his great dane. The woman with the sob story who kept getting second chances, only to be forcibly evicted after not paying rent for two years. Take the case of Mark, a first-time real estate investor who decided to dip his toes into the rental market. Excited about the prospect of passive income, Mark signed a lease with his first tenants, only to discover months later that they had stopped paying rent and disappeared without a trace. Left with a mountain of unpaid bills and damaged property, Mark wondered if it was even worth the risk of renting the property again.
But here’s the reality: horror stories like Mark’s are the exception, not the rule. For every tenant who causes trouble, there are many others who pay their rent on time, take care of the property, and treat their landlord with respect. My son, for example, has been a landlord for about 15 years. While he has had some negative experiences, overall, he has made hundreds of thousands with tenants who pay on time, report maintenance issues promptly, and take pride in maintaining the property as their homes.
So why do horror stories about tenants persist? One reason is that they make for juicy gossip and sensational headlines. After all, tales of chaos and destruction are far more attention-grabbing than stories of quiet, responsible tenants. Additionally, those who have experienced success from their investment properties aren’t going to be shouting it from the rooftops. They are much less inclined to share their stories publicly. Victims of tenant horror stories often share their experiences to get emotional support and to express their woes. Successful real estate investors on the other hand don’t typically speak up. They prefer to keep their achievements under wraps, fearing envy, competition, or unwanted attention.
Here’s the reality: real estate investing, like any other form of investing, carries some risk. And, with proper due diligence, risk management strategies, and a willingness to learn from both successes and failures, those risks can be minimized. From conducting thorough tenant screenings to implementing robust lease agreements and building strong relationships with tenants, there are many things landlords can take to mitigate the risks associated with real estate investing.
While the horror stories may be the first thing that pops into your head, these are far from the norm. The vast majority of landlords enjoy positive relationships with their tenants and experience success in their real estate ventures. So don’t let fear hold you back from checking out that duplex or triplex. With the right mindset, knowledge, and support, you can become a successful player in the world of real estate.
If you’re interested in finding out more about investing in real estate, connect with us at 613-860-4663 or firstname.lastname@example.org. Let’s get you building WEALTH wisely through real estate so you can live a LIFE exponential.