How is a Landlord like a Superhero?

Answer: They both have origin stories and incredible powers that can be harnessed for good or evil.

Ask 1000 school children what they plan to do when they grow up, and “landlord” won’t make the list. Very few people dream of becoming landlords.

Most landlords origin stories are closer to Spiderman being bitten by a radioactive arachnid than Tony Stark designing and building the IronMan suit, but landlords get started in a myriad of ways and come in many flavors. I have never met anyone who always wanted to be a landlord. Most of us stumble into the role, lured by circumstance, opportunity, or the idea of building equity in a property while someone else foots the bill.

In the mid-nineties, while serving in the US Navy, I was transferred from Virginia to California. My wife and I decided not to sell our VA home, opting to hire a management company to handle it for us, instead. When we sold the property five years later, we had built significant equity with no out of pocket expense. I was intrigued, but my immersion in the business of investment property wouldn’t come for another decade.

In 2008, I was a newly licensed real estate agent talking with a couple about their struggles to sell their home. They asked, “Can you help us find a tenant?” and the pieces fell into place from there. Since that conversation, I have leased and managed hundreds of homes and thousands of tenants.

I have met hundreds of landlords over the course of my career. Only a handful charted a course toward building a stable of income-producing properties from the outset. Most of them were created by a twist of fate or an unexpected opportunity. The “accidental landlord” path is by far the most common.

How did you become a landlord? Maybe you bought a larger home to accommodate your growing family and had an “aha moment” that launched your new career, or you were the beneficiary of family property and weren’t quite ready to see it sold.

Perhaps you were one of the few who embraced the concept of owning investment property and having their investment paid for by their tenants and decided to start buying investment property. This more intentional landlord may be slightly better prepared for the role than the typical accidental landlord, but the difference is usually slight because landlording is one of those things that looks very simple but is actually complex.

At the end of the day, it doesn’t matter how you got started. Welcome to the landlord club. We’re glad you’re here!

What about those incredible powers I mentioned?

As a landlord, you have a tremendous impact on the lives of your tenants. It is important to remember that your tenants are people just like you. They have complex lives filled with joy and struggles, just like you do, and just like you, their home is a big part of their life.

Whether they need permission to paint the bedroom blue, have a leaky kitchen faucet, want to adopt a cat or need a few extra days to get the rent together this month, your response will have an impact on their emotional well being, peace of mind, and quality of life.

How you handle these interactions will affect you as much as it affects your tenants. You aren’t striving for friendship here, but you do want to encourage communication. Your tenants are valuable to you in many ways, and you should strive to let them know that. Try to say “yes” when you can and remember that in addition to being people, your tenants are directly responsible for your income stream.

Most states have laws that reference “the landlord-tenant relationship.” If you want to have a successful career on the landlord side, one of the most important concepts you can grasp is that when you rent a property, you become part of a relationship. Tenants are not non-player characters. They are real people who laugh, cry, bleed and die.

Want a sure-fire formula for success? Rent your properly maintained home to a well qualified tenant. Treat them with the same kindness, courtesy, and empathy you would extend to your best friend or a cherished family member. Treat them as a partner in your success. Keep the rent slightly below market rate and remind them that you value their partnership. You will be rewarded with loyal residents who take care of your home, notify you of maintenance needs before more expensive problems arise, reliably pay their rent and stay in the property far longer than average tenants.

Great landlords tend to be people who are good at relationships in general. They are “people people” who take their role seriously. They hold up their end of the bargain, treat their tenant partners with kindness and empathy, and always give just a little bit extra. Great tenants are drawn to great landlords like aspiring actors are drawn to the lights on Broadway or the Hollywood sign. Great tenants are worth their weight in gold.

Great landlords identify with Spiderman, Superman and Captain America. If you admire Lex Luthor or Leona Helmsley, please don’t become a landlord. You won’t last and you will just add to the frustration bad actors impart on our industry.

No matter how you start, once you don the landlord hat, you accept a lot of responsibility. It’s important to remember the lesson Peter Parker’s uncle tried to teach young Spiderman; “With great power comes great responsibility.”

If you are able to consistently enforce the terms of your lease and keep your tenants happy at the same time, you are on your way to a delightful new career.

Have fun today!

Chris Compton - Broker