“Sometimes when I consider what tremendous consequences come from little things, I am tempted to think there are no little things.”
(Bruce Barton)
“Catch for us the foxes, the little foxes that ruin the vineyards, our vineyards that are in bloom.”
(Song of Solomon 2:15)
A while ago, I was talking to a family member I don’t get the opportunity to converse with very often. It turned out he owned an out-of-state rental property that he was self-managing and he began to tell me about it.
Family Member: So things are going great! I have a long term tenant who makes her $800.00 rental payment like clockwork every month; she even has it direct deposited into my account on the 1st!
Me: (talking): Reliable long term tenants are awesome. Congrats!
Me (thinking): $800 a month? Could that possibly be close to the going rate in this crazily appreciating housing market?
FM: And I don’t even have to think about the house. If she needs something repaired, she calls. If not, I never hear from her.
Me (talking): Low maintenance tenants are great. Congrats!
Me (thinking): No on-site inspections ever, not even a heads up from a repair vendor you work with regularly that can let you know if they see something awry? Are the air filters being changed? Animals in the house? Smoking indoors?
FM: And it’s a total win-win relationship! She doesn’t use the all the space, so she rents out some of the rooms on Airbnb for extra cash.
Me (talking): I guess that ensures she can make rent each month. Congrats!
Me (thinking): If you are allowing this, are you getting a cut? That seems like a lot of risk as the homeowner for (what sounds like) no compensation. Do you know who is coming in and out of your home? Is there any type of insurance being utilized if a renter is an axe murderer and takes out a few neighbors or starts cooking meth in the house? And is there consideration for all the people rolling through adding additional wear & tear to the home?
When you’ve done something as a vocation for a while, your thinking gets warped and can really make you sound like a wet blanket.
I imagine it’s like telling Michael Jordan you put up a shot in a pick-up game at the park. He sees a different game than a weekend player. He might ask:
Where did you shoot from? How much space did the defender give you? Did you jab step? Was there a lane available to drive to the basket? Where were your teammates? Should you have passed it out instead? What was the score at the time? Who was sliding back on defense to cover your man if your opponent threw a long pass down court off of a rebound? What type of loft did you get on the release of your shot- was there potential for a long rebound? Did you feed the ball to your big man inside first?
Whoa! I thought basketball was supposed to be fun? That sounds like school with an aggressively tense teacher. I mean, do these small details really matter anyway?
I think so. When I’m flying, do I want my pilot checking the wind direction or knowing what to do if geese get in the plane’s path (kudos, Sully!)? Or if my daughter is going to the doctor, do I want a licensed professional who knows what questions to ask and what tests to run to head off any larger health issues? Of course! One missed detail could bring dire results.
Michael Jordan won six NBA Championships by being detailed-oriented (and really good, of course!). In the same way, it’s imperative to have a property manager who is experienced enough to ask the right questions and be uptight on the details (even if it makes for awkward conversations with family members sometimes).
Happy Landlording!
Posts
