5 Ways to Manage The Stress Of Owning Rental Property
Hey everybody! Spencer Sutton here with gkhouses. Today I want to tell you about 5 Ways to Managing the Stress of Owning Rental Property.
So, you may ask, what is stressful about owning rental property? Because typically, it is easy to look at the positives instead of the negatives. Some of the positive aspects include renting to pay off a loan on a property, the house appreciation and also getting a tax break.
I mean, there are a lot of positives that go along with owning rental property.
However, it can be stressful. Some things people often overlook include times of vacancy, slow paying or no paying tenants, and maintenance issues.
So, there are a lot of things that can cause stress, and so we ask, how should you deal with those?
I have compiled a few steps that I have done personally to ease my stress. Some of these may sound like common sense, but common sense is not always common practice.
POINT Number ONE:
So, number one is getting enough sleep.
Typically, what I found is when I don’t have enough sleep I don’t make very good decisions later in the day. We all have a certain amount of willpower during the day and certain things tax our willpower.
Things like making tough decisions, avoiding temptation, there’s all kinds of things that tax our willpower.
By the end of the day if we are tired and worn out, we don’t get enough sleep, we can end up making poor decisions. These decisions could affect relationships with tenants, property managers, and everyone else in your day-to-day life.
POINT Number TWo:
Second thing I would say is exercise.
Workout, do yoga, go for a walk, find a way to relieve stress.
Overall health is very important in managing stress. Working out, eating property, and getting enough sleep will absolutely play a role in managing stress.
If you are healthy to begin with, the times where rentals are causing issues will be easier to deal with.
POINT Number THREE:
Point number three in the 5 Ways to Manage the Stress of Owning Rental Property is having a long term view of your rental property. Go into the investment or rental period with a long term view.
Things are going to fluctuate with time.
Like I mentioned earlier, if you have a tenant that moves out or if you have to go and repair a house.
if you had a tenant for a certain amount of time, it could take anywhere between $2,000-$6,000 to get the house back to being rent ready.
If that is the case, you will be under a lot of stress due to managing contractors, trying to rent the house, etc.
So, having long term view means don’t get caught up in the short term stress and the short term decisions. Understand that this is a long term game.
It is equally important to save money during the good times. Putting money away to be prepared for future maintenance and move out processes will save you a lot of stress in the end.
POINT Number FOUR:
The next thing I would say is, be able to roll with the punches.
This is easier said than done. Although, when you have a difficult situation with a tenant, you need to understand that this is just a part of owning your own property.
We here at gkhouses say this all the time because it is so important to understand. When you own rental property, you are in business.
This is not a hobby, this is a business. There are a lot of things that go into that, and learning to roll with the punches is one of them.
Being emotional is not the best way to own rental property. Be objective and roll with the punches!
POINT Number FIVE:
The last thing I would say to help you is to make sure you have a really good team around you.
If you are a landlord doing it by yourself, then you want to make sure that you have a CPA.
Also, you want to make sure you have a good attorney, a set tenant screening process, and have a good understanding of how to screen according to the law.
These things are very, very important. If you are considering a property manager, they can be an important part of your team.
So, a property manager, a CPA, an attorney, these types of people. All of them together can help you so that you are not doing it on your own.
When I bought my first rental houses, it was a package of 10 houses and I knew nothing about owning rental property.
I made all the mistakes in the world! I wish I had known about these 5 tips before purchasing a package of 10 houses.
Now, I still own rental houses and it’s been 13, 14 years. It took me awhile to learn these things, but after applying them to my life it has made the rental business more fun.
I hope this helps!
Feel free to shoot me an email at firstname.lastname@example.org if you have any questions or concerns! I would love to hear which of these you are going to work on applying to your life!
Thanks so much.