The older I get, the extra I dislike being a landlord. There’s an excessive amount of potential for disappointment, misunderstanding, or outright disagreeable moments. If you’re coping with individuals and one in all your most dear property, the margin for frustration is excessive.
If you wish to be a profitable landlord—and never get run over—you have to set expectations clearly and implement them. In any other case, you’ll continually really feel such as you’re letting somebody down or, worse, being taken benefit of.
This submit is a part of a sequence chronicling my journey as a landlord since 2005. My purpose is to provide readers a clearer image of what’s actually concerned in the event you’re contemplating turning into one your self. This newest expertise additionally underscores the worth of hiring a property supervisor: somebody emotionally faraway from the method who can deal with your property purely as a enterprise asset. Take pleasure in!
San Francisco’s Sizzling Rental Market
After 20 years of being a landlord, I’ve skilled all of the cycles. And proper now, the San Francisco rental market is robust. With residence costs close to all-time highs, mortgage charges nonetheless elevated, and the continued AI increase creating extra jobs, demand for leases appears to be growing.
Earlier this 12 months, my tenants of 5 years gave discover. That meant I had an opportunity to check the waters once more and re-rent my home. This time, the entire home to optimize our passive revenue, not simply the upstairs whereas holding the downstairs empty. I listed it on Craigslist on a Tuesday and was instantly bombarded with curiosity.
By Saturday, I hosted two personal showings for wonderful potential tenants. Each teams wished the place on the spot. One spouse was so excited she actually shouted: “We’ll take it! I wish to transfer in proper now!” when she was leaving.
These weren’t flaky candidates both. They have been organized, enthusiastic, had nice jobs, and wonderful credit score. It was tough to decide on between them, so I requested every to submit their finest provide. Inside 10 days, I had chosen the tenants, collected the deposit, and obtained the primary month’s lease.
Every thing was transferring easily. Or so I believed.
Making ready the Home for New Tenants
As a result of my spouse and I have been genuinely enthusiastic about this household, we went the additional mile to organize the house. Over two weeks, we painted partitions and trim, patched and sanded uneven spots, scrubbed the whole lot high to backside, and tackled an enormous quantity of yard work. It felt extra like we have been prepping the home on the market than for lease.
Our earlier upstairs tenants had been strong, however they uncared for the yard. So my youngsters and I rolled up our sleeves and set to work reseeding, trimming bushes, pulling weeds, and watering the whole lot again to life. Doing property upkeep alongside my youngsters is one thing I plan to maintain up. It builds their work ethic, provides them hands-on data, and helps them recognize the worth of taking good care of what you personal. Working with them additionally makes me extra smitten by addressing points.
On high of that, as a result of the potential tenants wished to maneuver in as quickly as potential, I needed to work out an earlier exit with the present upstairs tenants. That meant negotiating a prorated lease, agreeing on a snug move-out date, and ensuring they returned the unit in its unique situation. Not straightforward dealing with each side! Ultimately, all of it got here collectively. I acquired the brand new household in eight days forward of schedule. By move-in day, the home regarded contemporary, clear, and able to be loved.
There’s a novel satisfaction in handing over a property in pristine situation. It units the tone for the connection immediately. You hope the tenants will see the pleasure of possession and reciprocate by taking good care of the place. And as a landlord, it’s additionally a psychological reset. You are feeling good understanding the property is in nice form earlier than handing over the keys as soon as extra.
The Transfer-In Demeanor Shift
On move-in day, the husband arrived early for our walkthrough. Calm, well mannered, and well-prepared, he had scheduled out the day:
- Walkthrough with me at 10 a.m.
- Pal arriving at 11 to assist unload a van of extra delicate gadgets the tenant introduced.
- Major movers coming at 11:30 with a big truck.
Every thing about him was orderly and respectful.
The spouse confirmed up later, round 11:15, clearly pressured from the packing and logistics at their previous place. The enjoyment she’d proven when she shouted, “I wish to transfer in proper now!” was nowhere to be discovered.
After I greeted her with a smile and a “howdy,” she barely regarded up. No massive deal, I informed myself—it is a enterprise transaction, not a friendship. Shifting is disturbing and so much should have been on her thoughts.
I wrapped up the walkthrough, defined all of the nuances and upkeep tips on the home, handed over the keys, and wished them one of the best.
The Shock Request
Per week later, I occurred to be driving by and noticed them outdoors working within the yard. This was encouraging. I pulled over to say “howdy,” and rapidly seize a sizzling tub stool and a few chlorine bottles I’d left in out of doors storage.
The husband was pleasant, asking how I used to be doing. However the spouse instantly hit me with:
“Hey, I’ve acquired a query for you. Are you able to get some mulch and also you pay for it? There are some naked spots right here and particularly within the again.”
No “howdy.” No “thanks for the clear yard.” No “the home is nice.” Only a request.
Her tone caught me off guard. I anticipated some acknowledgment of the work we’d already carried out. Or not less than how she was having fun with the place. As an alternative, I felt like an worker being given a directive, one thing I’m not accustomed to after retiring in 2012. All these hours my youngsters and I had spent reseeding, trimming, and watering? Apparently meaningless or not adequate to their requirements.
I muttered a noncommittal, “Perhaps,” and left with a “goodbye” for good measure. I wanted time to consider her request after the lease was signed.
Setting Clear Expectations
I pleasure myself on offering an amazing product for the lease individuals pay. That’s why I used to be a bit of stunned by her request, and in addition why hiring a property supervisor helps with lowering emotional attachment.
My lease—which I’ve been refining since 2005—is a number of pages lengthy and really clear. Nowhere does it say the owner should present mulch. In actual fact, it explicitly states tenants are liable for sustaining the yard and vegetation.
Through the personal exhibiting, they by no means talked about mulch. Throughout lease evaluate and edits, mulch by no means got here up. Solely after signing did this “expectation” floor.
That is precisely why setting clear expectations is so necessary. If one thing isn’t within the lease, it shouldn’t all of the sudden change into a requirement.
The Slippery Slope Of Giving In
Right here’s the hazard: when you begin giving in to additional requests, expectations balloon.
In the event you purchase and unfold mulch, what’s subsequent—a Toto Washlet and new lighting fixtures at your expense? The record of needs could be countless. As an example, my new tenants additionally requested me to cowl the price of customized paint they utilized in a downstairs workplace and bed room. I declined. The present paint was completely advantageous. I had simply repainted a kind of rooms myself. Aesthetic upgrades fall squarely into the class of tenant bills.
Tenants are free to ask, however landlords want to guard themselves and are free to additionally say no. In the event you oblige each request, you threat blurring the boundaries. Your function shifts from proprietor to on-call service supplier. That semi-passive revenue begins turning into lively revenue, which is what you wish to keep away from.
And when your revenue margins are already squeezed by property taxes, mortgage curiosity, upkeep, and the occasional late lease, doing unpaid “extras” can tip your rental into unprofitability.
Worse than the cash is the psychological vitality drain. As soon as you identify your self as a landlord who at all times says sure, saying no later turns into a lot tougher. Bear in mind, as somebody searching for monetary independence, your property should give you the results you want, not the opposite method round.
Discovering A Compromise
After sleeping on it, I made a decision to supply a center floor. I emailed the husband—who had been well mannered {and professional} from the beginning—and informed him I’d reimburse as much as $150 for mulch. They may decide it up themselves and unfold it round. At roughly $10 a bag, that might cowl about 15–16 baggage, which felt cheap.
This fashion, I wasn’t setting the precedent of turning into their private landscaper, however I used to be nonetheless exhibiting some flexibility. To make issues simpler, I even informed them which retailer to go to and precisely the place to seek out the mulch within the retailer. It was a small gesture, however I wished to begin the connection off on the fitting foot. Slightly goodwill to start with can go a great distance over the course of a tenancy.
They accepted immediately and appeared genuinely grateful. Because it seems, at their final rental, the owner anticipated them to mulch the backyard each single 12 months, in order that they assumed that was normal.
I defined that I hadn’t seen the naked spots sufficient to make it a part of the lease, however since they introduced it up, I used to be advantageous with refreshing it each couple of years if wanted. I even steered they spray some Rock Glue to assist hold the mulch in place and informed them I’d cowl the price of that too.
Ultimately, what might have been a sticking level changed into a small win-win. They are going to get the spruced-up yard they wished, and I acquired peace of thoughts understanding we’d began our landlord-tenant relationship with a bit of cooperation as a substitute of battle.
I’m assured they’ll transform nice, caring tenants. To start with, it’s at all times only a leap of religion.
Why Strict Guidelines Construct Higher Relationships
Suppose again to highschool. Bear in mind the strict instructor who laid out guidelines from day one? At first, you thought she was harsh. However by the top of the 12 months, she was your favourite instructor. Why? As a result of the foundations have been clear, truthful, and constant.
After three years of teaching boys’ highschool tennis, I’ve realized the significance of building clear guidelines. In the event you don’t implement them with firmness, youngsters will rapidly check boundaries and disrespect your authority.
The identical precept applies right here. Clear guidelines create mutual respect. They only have to be reviewed and understood by each events.
In the event you’re a tenant: learn the lease rigorously, ask questions earlier than signing, and make clear expectations upfront.
In the event you’re a landlord: evaluate the lease line by line, spotlight tenant duties, and provides tenants a number of days to lift questions. Ask them if they’ve some other considerations that isn’t within the lease. You should be as thorough as potential. Preserve bettering upon your lease for subsequent time.
That small effort on the entrance finish can prevent monumental frustration down the highway.
Why I’m Decreasing My Landlord Publicity
Interacting with individuals could be draining, particularly when expectations don’t line up or the requests really feel unreasonable.
Take my previous tenants, for instance. They wished me to purchase three lighting fixtures that they had put in. I declined. I had already been versatile in letting them swap out the unique fixtures, so I informed them they might both depart their new ones behind or reinstall mine.
They weren’t thrilled with that reply after which requested me for the brand new tenant’s contact information to pitch them on shopping for the sunshine fixtures. I discovered the entire alternate draining over a couple of bucks. I by no means would have requested my landlord to buy lighting fixtures I selected for myself. Perhaps it was a cultural distinction. However to me, it simply felt like one other reminder of how mismatched expectations can create pointless friction.
If I had merely caught to the foundations and mentioned no to swapping out the unique lighting fixtures, this battle would not have taken place. However that is what you generally get for attempting to be versatile and good.
Though proudly owning rental properties is likely one of the finest methods to construct wealth and safe retirement, I’ve reached the purpose the place the fixed hassles outweigh the rewards. Every turnover requires managing departing tenants, dealing with an exit walkthrough the place harm at all times exhibits up that they’ve “no concept” what occurred, discovering and vetting new tenants, making ready the property, after which repeating the walkthrough course of. It’s a demanding cycle, and after years of managing it, I’ve determined sufficient is sufficient.
I am unable to wait to promote one other rental property in a few years, as by then, I’ll qualify for the tax-free exclusion rule as soon as extra.
Landlording Can Be Like Working A Company Job
One of many important causes I left company America was as a consequence of individuals. Workplace politics, tough personalities, and fixed requests wore me down after 13 years. I did not like managing individuals both.
Being a landlord is commonly no totally different. Even with supposedly “good” tenants, points come up. That’s why, though I’m nonetheless bullish long-term on San Francisco actual property, I accepted a preemptive provide in 2025 for my previous main residence that was a rental for one 12 months.
I reinvested 100% of the proceeds into the S&P 500, particular person shares, Treasury bonds, and enterprise capital—investments that require zero individuals administration. Shifting semi-passive rental revenue into really passive investments has been a reduction.
When you FIRE, you may also determine you don’t wish to handle rental properties, for most of the identical causes you left your job within the first place.
Classes Discovered For Landlords
Listed below are the primary takeaways from this expertise:
- Set clear expectations upfront. Your lease is your rulebook. Don’t depend on verbal understandings because it opens your self as much as misunderstandings.
- Don’t change the phrases midstream. If it’s not within the lease, it’s non-obligatory, not necessary.
- Watch out with “extras.” When you begin saying sure, tenants might hold asking for extra.
- Defend your margins. Bills creep rapidly; don’t let small favors flip into massive, ongoing obligations.
- Respect goes each methods. Kindness and courtesy matter. Tenants who deal with you properly deserve extra flexibility than those that don’t. Use your emotional intelligence to make life simpler for each side.
In my subsequent lease settlement, I plan to spell out extra particulars round exterior upkeep, make clear that the property is rented “as is,” and specify that tenants might make enhancements or aesthetic modifications solely with prior approval and at their very own expense.
The trail to constructing a livable passive revenue stream isn’t straightforward. The secret’s to at all times be taught from every expertise so the following one turns into a bit of higher.
Let’s All Perceive And Comply with The Lease
On the finish of the day, each landlords and tenants need a optimistic expertise. Tenants need worth for what they pay. Landlords need tenants who look after the property and are self-sufficient. Neither social gathering needs to maintain going backwards and forwards with one another throughout the whole time of keep.
This stability is achievable, however solely when each side clearly perceive and comply with the lease. With out expectations, frustration grows. With them, the connection has an actual likelihood of succeeding.
Landlords, have you ever ever had tenants ask for issues that went past the lease? How did you deal with it—did you accommodate, push again, or discover a center floor? And tenants, I’d love to listen to your facet too. Have you ever ever satisfied a landlord to go above and past what was in your lease? If that’s the case, how did you pull it off?
On the finish of the day, I believe setting expectations is the muse of a clean landlord-tenant relationship. However I’m curious—how necessary do you assume it truly is, and the place do you draw the road?
Spend money on Actual Property, With out the Complications
Don’t wish to take care of tenants, late-night upkeep calls, or chasing lease checks—however nonetheless need publicity to actual property? Take a look at Fundrise. With over $3 billion in property beneath administration and a minimal funding of simply $10,
Fundrise focuses on build-to-rent residential and business properties in additional reasonably priced components of the nation. They deal with the acquisitions, tenants, and property administration—so you may sit again and concentrate on the components of life you truly get pleasure from.
I’ve personally invested over $500,000 throughout a number of Fundrise funds and a number of other accounts, they usually’ve been a long-time sponsor of Monetary Samurai. With the Fed slicing charges once more and three years of underbuilding as a consequence of excessive financing prices, I count on to see continued upward strain on rents within the years forward.
