Learn How to Fend Off Exhaustion Being A Do it Yourself Landlord
The rental business can be lucrative and enjoyable, but it can also be a mental and physical drain if you let it. So how can you fend off exhaustion as a do it yourself landlord?
If you started investing in rental properties for the passive income thinking it was going to be easy, you often find yourself disappointed. Even a part-time rental business can morph into a full-time commitment. That’s why it’s important to strike a balance between your work and your personal life. Setting boundaries will cultivate a successful business and help keep you sharp and motivated.
Here are several ways to fight off fatigue and burnout:
Set Realistic Goals
There can indeed be a great deal of money in being a landlord, but remember, this is not a get rich quick scheme. Your monthly rent checks build equity and produce modest profits, but this is a long-term strategy. Renting a few single-family homes won’t make you rich, but it can provide you with financial stability. Growing your business takes time, and over time, as your real estate portfolio multiplies, you will settle into a comfortable routine.
If It Wasn’t For That Darn Tenant..
Tenants are generally the primary source of a landlord’s frustration. In time you will eventually come across a nightmare tenant and be forced to deal with the mental and/or financial burden. Inevitably a situation will escalate to eviction, that’s just the business. You can try to avoid this by implementing strict and proper screening procedures and addressing problems promptly before they grow into an ordeal.
Handpick Your Locations
Purchase quality properties in appropriate neighborhoods. If your property is in a “war zone,” you shouldn’t be surprised by negligent tenants and loads of damage. Purchasing a newer, or at least a better-maintained property, can eliminate many of the pestering but routine repairs. As the neighborhood will determine the market rental rates and thus, the quality of tenant, purchase wisely. If a property has become too much of a burden, consider selling and reinvesting in another part of town.
Find Your Limit
Being a landlord is time-consuming; decide how many hours you can devote to your business and purchase appropriately. Trying to manage all aspects of the business yourself gets old. While having a few single-family properties as a side business can be manageable, trying to juggle a larger scale operation and a day job won’t be sustainable for long.
Get Help When It’s Time
You became a landlord to make a little extra money, not to have a nervous breakdown. As your business grows or you simply can’t handle the load by yourself anymore, it’s time to assign responsibilities to others. Hiring a part-time manager or a contractor to serve as a handyman will relieve you of some of the mundane, routine duties. If you’re looking for complete freedom from daily operations, retaining a property management company to handle your business may be your best solution.
Money Isn’t Everything
A job-independent, steady income may have driven you towards real estate investing, but at some point, you to realize that your time and personal life are just as important. Especially when starting out, small business owners, such as DIYers, are plagued with long hours and stress. No matter how profitable your business is, it not worth jeopardizing your health over. Sleepless night and depression will not only drain your mental state but will most likely cause your business to suffer, as well. At some point, you’ll need to evaluate your situation and decide for yourself whether the money is worth it at the expense of your personal life.
Big problems are easy to fix when they are still small. Losing enthusiasm in a job that you used to love and not caring as much as you used to, are initial signs of burnout. If a property is taking you in the wrong direction, it’s time to decide whether or not it is still a good fit for your portfolio. At some point, you’ll realize that being a DIY doesn’t have to mean that you Do It (all) Yourself.