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Jun
08
2008
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Things I Hate About Being A LandlordCategory: Landlord Advice
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Over the previous few years I’ve spent a large portion of time talking about the cool perks of being a landlord; consequently I’ve managed to spend limited time discussing the downside of being a Landlord. While I think being a Landlord is an awesome occupation, I’m not completely oblivious to how much of a shitty experience it can be. I’ve experienced the good and bad times, but mostly been fortunate enough to experience the perks.
When I think about it, there are actually a lot of things I despise about being a Landlord, but I guess every job has its battles. I don’t use a Letting agent to manage my properties, so I probably have a longer list than the average Jo that forks out on full-management services…
Keeping up with the finances
The financial market is constantly changing, and that can severely have an impact on the livelihood of landlords. For example, an increase in interest rates could mean higher mortgage payments at the end of the month. A few consecutive jumps in rates and landlords could find themselves struggling. After a shortly lived fight, “for sale” signs start to go up.
To be financially efficient, it’s always good to look out for the best mortgage deals on the market, so you can remortgage and get better rates. Remortgaging is something I highly recommend, because eventually there’s going to be a new deal on the market that will make more financial sense than your current policy.
The versatile financial market can be worrying and remortgaging can be hassle, but unfortunately it is the nature of the buy-to-let beast.
Relying on tenants
Every landlord is at the mercy of their tenant, and that’s the sad reality. It’s a fucking nightmare situation. I usually hate relying on people, but unfortunately when you’re a landlord you have to rely on your tenant for a number of things. For example,
- make rental payments on time
- keep the property in acceptable condition
- to not piss off the neighbours
Chasing rent
I hate having to chase rent, but a lot of the times it comes with the territory; being a bailiff can be part of the job description. Only in an ideal world will every tenant make rental payment on time every month. Unfortunately, I don’t live in Disney World, so I’ve had to chase up on tenants a few times. For the most part, it’s just a case of the tenant forgetting to send the cheque, or has been too busy, so all that was required was a phone call to push the payment along. But still, it’s hassle I don’t need nor want.
I expect rent every month at the agreed date. Alas, it just doesn’t always happen.
Being on call 24/7
As mentioned, I don’t use Letting agents to manage my properties, so if there’s a problem with one of my properties I’m the first one to be called, even if it means interrupting my beauty sleep at 2am. Burst pipe at 4am, it’s my responsibility. Hole in the roof on Christmas day, it’s my responsibility. It’s the Landlord’s responsibility ALL the time, at anytime.
Responsibility
Owning a house and having a mortgage is stressful, but a landlord wins the bonus prize of having additional stressful responsibilities because they also become an offsite babysitter for the tenant.
Not only is the responsibility of making every mortgage payment on time every month a constant concern, but for example, i’m also burdened with the responsibilities of making sure my tenants don’t burn down my house, and that my properties meet all legal standards of buy-to-let properties.
Finding tenants
Finding “decent” tenants is probably the most important step a landlord needs to make, and that’s why it’s such a pain. The margin for error when it comes to tenant selection is massive, and the penalty can be life ruining. Bottom of the barrel tenants have enough power to inflict repossession. All it takes is one snotty tenant to refuse to make payment for 6 months and vacate the property to ruin a Landlord’s life. It happens.
The problem with tenants is can be difficult to spot the good from the bad; they come in all shapes and sizes. A lot of the times you can spot a rotten apple from amongst the bunch, but unfortunately people can be deceiving.
Losing good tenants
I haven’t had many tenants over the years because I’m still new in the game, but I have had a mix of the good and the ugly. I’ve recently lost a really good tenant, and it genuinely made me recognise the importance of quality tenants. This kind of continues from my previous point (finding tenants); it’s tough to find decent tenants, but it’s even tougher when you’re trying to replace an excellent tenant because you already have high expectations.
The thing with the buy-to-let game is that it’s based on a partnership between the landlord and the tenant; if there’s a weak link in the chain then things can turn sour pretty quickly.
Losing a tenant that threats your property like a home and pays rent on time is a big blow, and it’s something I really hate to lose.
Dealing with tenants
Depending on the calibre of tenant, a Landlord needs the patience of an angel to stand any chance of victory, that’s for sure.
If I didn’t have some level of patience I would have ripped my hair out by now because of incompetent, selfish, rude tenants. I’ve had to deal with unbelievably scummy tenants; tenants that have less credibility than the gum under my shoes.
“Dealing with tenants” is an extremely broad area, and I’ve already covered some situations where a landlord would need to deal with tenants. It could mean dealing with rent chasing, it could mean dealing with a tenants’ shitty request, or could even mean evicting a tenant. I’ve dealt with all scenarios before, and when you’re dealing with people like that in ANY industry, life becomes difficult.
Essentially, if landlords could receive rent without actually having tenants, they would, because tenants can be a pain in the ass.
The law sucks
Tenants in England have way too much protection from the law, and it’s embarrassing. If a tenant can’t keep up with payments, they should be immediately vacated from the property, right? Right. Does the government see it like that? Hell no! In fact, if you personally try and throw a tenant out when they fail to make rent, it’s against the law to try and force them out. Unbelievable!!!
The country is messed up when it comes to landlord’s rights. Landlords aren’t allowed to force entry regardless of situation, they’re not allowed to independently reclaim their property; they basically can’t do anything without going through the appropriate lawful steps. It’s a joke, because the “right” process is a lengthy and costly process for Landlords. Why should decent landlords have to suffer because of scumbags?
The saddest example is, tenants could file a complaint against a landlord for entering their own property without giving at least 24 hours notice to the tenant, which the tenant must agree to. Requiring permission to enter your own property when it’s being occupied by someone that isn’t paying rent is ridiculous.
I personally feel the law favours ‘cowboy tenants’ over decent landlords, and that makes life extremely difficult for a landlord.
Are you a Landlord? If so, what aspects do you hate about being one?
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…Yeh I don’t think I could ever deal with all that shit so congratulations to you on maintaining your sanity….thus far
What I dont like is the number of times that dishwashers or washing machine need replacing.
Yeah, replacing dishwashers and washing machines are expensive. Fortunately I don’t provide either
However, I have had to replace a cooker before. But I’ve been fortunate so far, haven’t had to replace too many items; costs have been minimum *touches wood*
You said “life extremely difficult for a landlord”. I say “life more extremely difficult to employers”!!!
The most important thing is “Finding tenants”, the other items you can hire a estate agent to do. Then you will need spend the same time with the estate agent, instead the tenants.
Roberto: with respect, I think it’s completely transparent that you don’t know what you’re talking about.
Firstly, Estate agents don’t handle “lettings”, that would be a letting agency.
Secondly, a letting agent charges approximately 14% for a full-management service. That’s a lot of money.
Thirdly, agents can’t handle everything. For example, if tenants destroy your property, an agent can’t do anything…
Forthly, even if you do have a letting agent doing all the work. It’s still worry on the landlord’s head when the tenant refuses to pay rent. You think a letting agent is going to worry about their clients mortgage? Get real.
Hum. I fail to see what the problem is. You do a job…it’s hard…you get paid…welcome to life.
I am on the other side of the coin (a ’snotty’ tenant). The reason tenants have “way too much protection from the law” is because of the natural bahavoir of landlords…cheapscates who expect to make a living lying on their backs sipping cocktails while their scum tenants pay off their mortgages. Back in the bad old days, tenants had no rights…and landlords could do what they wanted (throw people out at the drop of a hat, up rent whenever they wanted, provide sub standard flea pit accomodation, etc). Thanks to the actions of your predecessors (vile, work shy freeloaders), you now have to work to be a landlord and (thank god) provide a basic service on your letting.
If you provide a washing machine, dishwasher or cooker and it breaks…damn right you have to fix it… those are your assets, and they were used to sell your property to the prospective tenant, they make up a proportion of the rent each month (as you know), and that is what the tenant is paying for. It’s like a hotelier whinging because they have to change the sheets EVERY night (it is part of the service!). If you don’t want to get called on Christmas day, don’t be a cheapscate and empower your tenant to call out professionals (not your hairy mate bill who you employ as an “odd job man”), to get the job fixed. You use the word babysitting, that is what happens when you have a draconian tenancy agreement that says run everything past you when something goes tits up.
I find it sad that council tenants are given 100% service (with compensation for lack of service), while anybody in the private sector has to put up with (in the main) half witted, dullard landlords who instead of employing contractors to carry out work, send round their hairy odd job man to mess things up even more! Problems such as “the lock on the main front door of the building is broken”, “I have no hot water because the boiler is broken” can go unanswered for weeks or even months.
I bet you think that the introduction of deposit protection schemes are a waste of time and an affront to landlords because it means your tenancy divident was taken away! Wonderful.
If you do things with a slim margin, of course you will feel the pressure when you have to do everything, or shell out for new stuff because the budget piece of equipment you paid for has (surprise, surprise) just given up the ghost.
A lot of the time, landlords appear to have managed to buy their ‘investments’ (homes to you and I), after a relative has very timeley popped their clogs…moving from factory line worker to ‘property developer’ over night is a pretty big change, and I fear that most private landlords I have encountered couldn’t manage a childrens party let a lone a property full of paying tenants.
I relly enjoy being a landlord
Its a bussiness and you have to manage it
Its better than being in the Rat race 9 till 5
every job has a down side
Get on with it look at the good sides not the bad
There seems to be some confusion. I love being a Landlord. I love owning property, knowing that I’m building a secure future for myself.
This is merely a list of things I dislike about being a Landlord- as people have mentioned, there are negatives to every profession.
I can make a longer list of the things I love about being a Landlord.
Sorry, i am learning about the market here in UK. I have 7 small houses rented on Brasil, and I use a “letting agent” do “manage” my houses (I thought that estate was correct, i am still learning english). :/
But there, the market is different, because I pay 7% to a full management service and for me is very good because I don’t need pay mortgages for these houses! But I passed for about 5 letting agents until get a good service.
Also, I force all tenants (when they sign the contract) to pay a insurance. If tenants don’t pay me, the insurance company pay me!
Do you know if exist similar insurances in uk? Is it possible to “force” tenants to pay this insurance?
Hey Roberto.
If letting agents only charged 7% then I would definately use them
But unfortunately, they charge double that over here!!
Also, I have mortgages to pay on my property, so it would cost me a lot more. It sounds like you’re in a great position
Rental insurance is available for Landlords in the UK. In fact, i use it myself.
I suppose you could it compulsory so that tenants have to pay for insurance, yes. But by doing that you’ll probably limit the amount of people who would want to rent your property, as it will cost them more money!
Kind regards
I think Baron Nogood has hit the nail on the head.
I have more than enough vitriol to share on the relationship of landlord/tenant:
Why is the amount I pay and the state of the property the concern of some private property owning moron who, when it comes down to it, couldn’t give two fecks about me as a tenant, beyond being capable of paying rent of course. I’m an asset and, if they had their way, a disposable one as well…
I hate the property owning, ladder climbing times we live in. I rejoiced the day I heard about the credit crunch, I sat patiently outside new builds, awaiting crying young couples brought to their knees contemplating their negative equity! Sadly all I’ve noticed is the rent in my area going up, arse!
Good tenants are out there, people who work for a living, pay taxes and paint the walls to remove the grime stains form your walls. If you choose to rent to scum, it really is your fault. I can’t afford to own a house, I can’t stump up the deposit and have no wealthy parents to do it for me. I don’t want sympathy, just the chance to live in the town I work, pay as little rent as possible and keep some dignity. It seems I’m loosing this battle whilst landlords are winning.
What, exactly, is wrong with centrally owned, rent controlled property? Flats and houses given to those who can prove the ability to pay the rent and bills with, perhaps, the decision to buy after a year or more? It would spell the end to all you parasitical, work shy, cheapskate, pseudo bourgeois, capitalist cash vacuums…
I know the Government is starting to introduce such schemes but I’m afraid it’s too little too late…
Case in point: I left my last property after the landlord felt it necessary to raise the monthly rent by £100. I’d only just told him about my plans to install cable broadband, and, perhaps, operate as a freelance designer from the flat, in short: I was willing to commit to another 3 years minimum. Then, after all that, he told me he wanted to put the rent up!!!! Nothing about a new toilet (which was needed) or new windows: which let so much cold air in the winter, I might as well made a fire from ten pound notes! Nothing, in essence for me, just a nice extra £100pcm for him, BASTARD!!! I knew he was privately wealthy, retired early with no debts to his name (because he told me). He even had the temerity to pronounce me as his favourite tenant…?!
Come MY revolution, YOU WILL BE FIRT AGAINST THE WALL – OR PERHAPS THE WALL ITSELF!!!! Either that or I’ll end up being one of you…?
I’ve rented over 14 properties now, most have been over priced, poorly maintained, grimy, damp, magnolia hell holes. Good for nothing more that my suicide: brought about by the slow realisation that a young professional, decent chap like my self is little more in this property porn film than the guy who mops the cum off the floor…with his tongue…whilst having to pay top rates for the privilege.
Rant over, good luck with the landlord business….
Cxxxxx
I’ll be the first to admit that there are a lot of cowboy landlords out there.
I’ve been renting a particular property to the same tenant for 3 years, without increasing rates once. I’m severely undercharging at the moment, and it is effectively costing me. However, she’s an awesome tenant- and that’s where I get my value back. Anyways, the tenant/landlord scenario swings in round abouts.
Good luck with the daily grind- you seem stressed.