Managing The Stress Of Owning Rental Property
Hey, Spencer Sutton here with gkhouses. And today I want to talk about Managing the Stress of Owning Rental Property.
So, you may ask, well, what’s stressful about owning rental property? Because typically, if you’ve done some research and you’re looking to buy potentially some rental property as an investment, it’s easy to look at the positives, right?
Its a mailbox money, somebody’s going to pay down a loan if you have a loan on the property, things like that.
The house appreciates, you have rental appreciation, house appreciation, and you get a tax break.
I mean, there are a lot of positives that go along with owning rental property.
However, it can be stressful. So, what can be stressful about owning rental property?
Well, you’re going to have vacancy can be a stressful time because it could be a matter of months that you don’t have somebody in that house, just depending on your situation.
You can have slow paying or no paying tenants.
So, if you run into a collections issue, that can get stressful, it ramps up the communication that you have to have with that tenant.
And sometimes they may not cooperate the way you feel like they should.
Other things that can happen that will cause stress, maintenance issues cause stress because it leaves you going out and finding contractors.
Finding, you know, getting estimates back, figuring out how you’re going to fix something, especially if it’s larger than just a, you know, a small, like, small plumbing fix or something like that.
If it requires something more substantial, these things can stress you out.
So, there are a lot of things that can stress a landlord out, and so how do you deal with those?
And, what I’m going to do is I’m just going to walk through a few things that I personally would recommend how you deal with the stress.
POINT Number ONE ON Managing The Stress Of Owning Rental Property:
So, number one is getting enough sleep. And these may sound like common sense but common sense is not common practice.
Common sense, yes, but make it common practice for you. So, number one is getting enough sleep.
Typically, what I found is when I don’t have enough sleep I don’t make very particular, very good decisions later in the day, so 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’re tired, if we’re worn out, we haven’t been getting enough sleep, we can make poor decisions, so get enough sleep.
POINT Number TWO ON Managing The Stress Of Owning Rental Property:
Second thing I would say is exercise, workout, find a gym, something you can relieve stress.
Working out, eating properly, and getting enough sleep will absolutely help you manage the stress of owning rental property during the times when it does become stressful.
POINT Number THREE ON Managing The Stress Of Owning Rental Property:
The next thing I would say is, it’s helpful if you go into owning rental property with a long term view of owning rental property.
Things are going to fluctuate; things are going to go up and down.
Like I mentioned, if you have a tenant that moves out, if you have to go and repair a house.
if you had a tenant live there for a certain amount of time, maybe you have to spend $2,000 to $5,000 to $6,000 to get the house back rent ready.
And if that’s the case,
It can cause a lot of stress because you’re managing contractors, you’re trying to rent the house, you’re talking to prospective tenants, you’re looking at applications, and you’re doing all those things.
So, having long term view, don’t get caught up in the short term stress and the short term decisions. Just understand that, hey, this is a long term game.
And, during the good times make sure you’re saving some money, putting some money back so that you’re prepared for the short term fluctuations, so have a long term view.
POINT Number FOUR ON Managing The Stress Of Owning Rental Property:
The next thing I would say is, just roll with some of the punches.
So, this is a tougher one to do, it’s easier said than done, but when you have a difficult situation with a tenant, you just need to understand that this is just a part of owning your own property.
I mean, you are…when you own rental property, you are in business.
This is not a hobby, this is a business and so there are a lot of things that go into that, but you need to learn to roll with the punches.
If you fluctuate wildly with your emotions about things, the things get you emotionally, you know, off-kilter when things happen, then owning rental property may not be the best thing for you. So, roll with the punches.
POINT Number FIVE & THE LAST THING ON Managing The Stress Of Owning Rental Property:
The last thing I would say to help you deal with the stress of owning rental property is to make sure you have a really good team around you.
If you’re a landlord and you’re 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, you want to make sure that you are able to screen tenants the proper way, you want to make sure you have a good understanding of how to do that according to the law.
These things are very, very important. If you’re considering a property manager, they can be an important part of your team.
So, a property manager, a CPA, an attorney, these types of things, all of them in concert can help you so that you’re not just doing it on your own.
I can tell you from experience when I bought my first rental houses, it was a package of 10 houses that I bought, and I literally knew nothing about owning rental property.
I made all the mistakes in the world and if I would have known these things, getting enough sleep, exercising, eating right, you know, taking a long term view, rolling with the punches and then putting a good team around me.
If I would have known these things, then I would have fared much better through my rental history.
Now, I still own rental houses and it’s been 13, 14 years.
So, anyway, I hope this helps and feel free to shoot me an email at firstname.lastname@example.org.
If you have any questions I can help you with, anything at all.
hanks so much.