Whenever we come across the term “Landlord”, it exhibits a sense of pride and fulfillment in such a way that you feel like one in a million. So here you are, the owner of multiple properties, living a life in your terms.
This is exactly how we dream about being a hands-on landlord. You see, the “Land-Lord” is not a lord rather an owner of the property. On paper, the title seems to look great but in reality the job of the landlord is obnoxious.
There is no doubt about it that owning an asset (Real Estate) and investing in thriving rental property can reap in a lot of benefits. Right from generating cash flow, better ROI, equity appreciation, ownership pride, etc. But everything comes with a price. Owning multiple properties may feel like a dream come true but only if you’re not a self-managing landlord.
Here are a few reasons why being a landlord is not a great option:
1. Time Commitment
If you’ve decided to become a self-managing landlord, who self- manages all of its rental property portfolios then you cannot find time to pursue your other dream goals. Forget about taking off or going to an adventurous trip as you have to remain available 24/7/365 for possible tenants and prospective-tenant inquires.
2. Learning Too Many Full-time Job Roles
As a landlord, you are also the property manager who has to learn & master a whole team of full-time job roles, such as:
- Property Manager
- Customer service representative
- Leasing agent
- Possible tenant screening professional
- Property inspection Team
3. Mental Anguish
As said earlier that being a self-managing landlord can be a daunting task when it comes to entertaining different tenants. You will eventually face some tenants who might be more demanding. Sometimes they can’t pay you the rent on time, ask you to repair for the ceiling, etc. and it can be draining. So there is a lot of mental anguish while handling tenants, especially multiple tenants in different property of yours.
4. Risk Factor
When you take the job of managing the whole situation closely. Then as a landlord, you have to deal with the physical dangers of being on job site, facing angry tenants, collecting monthly rents, to the financial liabilities in being too close to it all, etc can make things worse.
As discussed earlier various benefits of owning assets and investing in rental property. It is possible to live a hassle-free life without being a self-managing landlord. There are other alternatives to have that such as:
- Outsourcing the management
- Going for turnkey rental property investing
- Private lending
- Investing in funds
- Partnering with those who’ll get your managing work done
It is not advisable to personally manage your properties. Since it is way more time consuming and painstaking. Time is what we want the most but what we use worst.
It will be great and way more profitable to have a professional team by your side who will handle most of the day-to-day property management, thereby giving you the time to pursue your other goals.
So instead of being a landlord, become an investor to live a hassle-free life.
What was your experience while managing multiple properties as a landlord?