Owning real estate can be a mixed bag. The more properties you have, the more issues you’re likely to face as a landlord. Back in June 2022, I decided to rent out a house I’d bought in 2019 and had fully renovated. The renovation took longer than expected, thanks to the pandemic, so we ended up buying another house nearby in 2020.
We first rented out the top two floors of the old house while the ground floor was being renovated. Once that was done, a family of three moved in. They’ve been great tenants so far, paying rent on time and causing less wear and tear than the previous tenants.
But even a newly renovated house isn’t immune to maintenance issues. In November 2022, the tenants reported a leak under the kitchen sink, which turned out to be a cracked pipe. Then in January 2023, after weeks of heavy rain and wind, our fence broke. It was an old fence, so I didn’t mind splitting the cost of replacement with my neighbor. But arranging for the work to be done took time away from my family, which is why I’m leaning towards private real estate investments.
Then there was the mysterious beeping sound. Every time I got a text from the tenant, my heart would sink. The latest issue was a smoke alarm in the basement that wouldn’t stop beeping. The tenant couldn’t figure out which one it was, and asked me to come over the next day to check it out. I was a bit annoyed, thinking it couldn’t be that hard to find the source of the noise. But I agreed to come over the next day with my son to investigate.
We couldn’t find the source of the noise either. After about 15 minutes, I realized the noise might be coming from inside the walls. My son and I listened at every wall until we found the loudest spot. The tenant was relieved to know she wasn’t imagining things.
We discussed the options: I would check my video archives to see if there was a fire alarm inside the walls. If there was, we could either cut a hole in the wall to remove it, or wait for the battery to run out. When I got home, I found a video showing a fire alarm inside the wall. The tenant agreed to wait a couple of weeks to see if the battery would run out.
Being a landlord has taught me the importance of attention to detail when remodeling a home. It’s also made me realize that rental income isn’t as passive as I once thought. But it’s also given me the opportunity to teach my son valuable skills, like problem-solving and communication. And it’s shown him that achieving financial freedom takes work.
Unfortunately, the beeping didn’t stop after three weeks. I had to call my handyman to cut a hole in the wall and remove the alarm. He charged me $100 for the job, which I thought was fair. I also took the opportunity to touch up some scuffs on the walls and remove some stains from the carpet.
Being a landlord can be challenging, but it can also be rewarding. It’s all about how you view the work involved. If you’re looking for a more passive way to invest in real estate, consider platforms like Fundrise. They focus on single-family and multi-family homes in lower-cost areas of the country, which can provide a steady stream of passive income.
