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 certainly one of your most respected property, the margin for frustration is excessive.
If you wish to be a profitable landlord—and never get run over—it is advisable set expectations clearly and implement them. In any other case, you’ll consistently really feel such as you’re letting somebody down or, worse, being taken benefit of.
This put up is a part of a collection chronicling my journey as a landlord since 2005. My aim is to offer readers a clearer image of what’s actually concerned for those who’re contemplating changing 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.
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 powerful. With dwelling costs close to all-time highs, mortgage charges nonetheless elevated, and the continuing AI growth creating extra jobs, demand for leases appears to be growing.
Earlier this yr, 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 retaining 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 needed the place on the spot. One spouse was so excited she actually shouted: “We’ll take it! I need 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 troublesome to decide on between them, so I requested every to submit their greatest supply. Inside 10 days, I had chosen the tenants, collected the deposit, and acquired the primary month’s lease.
All the things was shifting 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 all the pieces prime to backside, and tackled a large 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 all the pieces 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 information, and helps them admire the worth of taking good care of what you personal. Working with them additionally makes me extra captivated with addressing points.
On prime of that, as a result of the possible tenants needed to maneuver in as quickly as attainable, 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 either side! Ultimately, all of it got here collectively. I bought the brand new household in eight days forward of schedule. By move-in day, the home seemed 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 straight away. 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’re feeling good figuring out 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.
Buddy arriving at 11 to assist unload a van of extra delicate gadgets the tenant introduced.
Fundamental movers coming at 11:30 with a big truck.
All the things about him was orderly and respectful.
The spouse confirmed up later, round 11:15, clearly harassed from the packing and logistics at their outdated place. The enjoyment she’d proven when she shouted, “I need to transfer in proper now!” was nowhere to be discovered.
Once I greeted her with a smile and a “good day,” she barely seemed up. No huge deal, I advised myself—this can be a enterprise transaction, not a friendship. Transferring is traumatic and so much should have been on her thoughts.
I wrapped up the walkthrough, defined all of the nuances and upkeep recommendations on the home, handed over the keys, and wished them the perfect.
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 “good day,” and shortly seize a scorching 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 bought 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 “hello.” 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 completed. Or at the very least how she was having fun with the place. As an alternative, I felt like an worker being given a directive, one thing I’m now 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, “Possibly,” 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 a fantastic product for the lease individuals pay. That’s why I used to be somewhat stunned by her request, and in addition why hiring a property supervisor helps with decreasing 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. The truth is, it explicitly states tenants are accountable for sustaining the yard and crops.
In the course of the personal exhibiting, they by no means talked about mulch. Throughout lease overview and edits, mulch by no means got here up. Solely after signing did this “expectation” floor. Between signing the lease and shifting in, the mulch didn’t instantly disappear and this quick time period.
That is precisely why setting clear expectations is so vital. If one thing isn’t within the lease, it shouldn’t instantly turn out to be a requirement.
The Slippery Slope Of Giving In
Right here’s the hazard: when you begin giving in to further requests, expectations balloon.
When you purchase and unfold mulch, what’s subsequent—a Toto Washlet and new lighting fixtures at your expense? The checklist of needs may be infinite. As an illustration, 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 fantastic. 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. When you oblige each request, you danger blurring the boundaries. Your position shifts from proprietor to on-call service supplier. That semi-passive revenue begins turning into lively revenue, which is what you need 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 power drain. As soon as you identify your self as a landlord who at all times says sure, saying no later turns into a lot more durable. Bear in mind, as somebody looking for monetary independence, your property should give you the results you want, not the opposite means 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 advised him I’d reimburse as much as $150 for mulch. They might decide it up themselves and unfold it round. At roughly $10 a bag, that may cowl about 15–16 baggage, which felt affordable.
This manner, I wasn’t setting the precedent of changing into their private landscaper, however I used to be nonetheless exhibiting some flexibility. To make issues simpler, I even advised them which retailer to go to and precisely the place to search out the mulch within the retailer. It was a small gesture, however I needed to start out the connection off on the correct foot. Somewhat goodwill to start with can go a good distance over the course of a tenancy.
They accepted straight away and appeared genuinely grateful. Because it seems, at their final rental, the owner anticipated them to mulch the backyard each single yr, 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 fantastic with refreshing it each couple of years if wanted. I even urged they spray some Rock Glue to assist hold the mulch in place and advised them I’d cowl the price of that too.
Ultimately, what may have been a sticking level became a small win-win. They’ll get the spruced-up yard they needed, and I bought peace of thoughts figuring out we’d began our landlord-tenant relationship with somewhat cooperation as an alternative of battle.
I’m assured they’ll develop into nice, caring tenants. At first, it’s at all times only a leap of religion.
Why Strict Guidelines Construct Higher Relationships
Suppose again to high school. Bear in mind the strict trainer who laid out guidelines from day one? At first, you thought she was harsh. However by the top of the yr, she was your favourite trainer. Why? As a result of the principles have been clear, truthful, and constant.
After three years of teaching boys’ highschool tennis, I’ve discovered the significance of creating clear guidelines. When you don’t implement them with firmness, youngsters will shortly take a look at boundaries and disrespect your authority.
The identical precept applies right here. Clear guidelines create mutual respect. They only should be reviewed and understood by each events.
When you’re a tenant: learn the lease rigorously, ask questions earlier than signing, and make clear expectations upfront.
When you’re a landlord: overview 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 attainable. Hold enhancing upon your lease for subsequent time.
That small effort on the entrance finish can prevent huge frustration down the street.
Why I’m Decreasing My Landlord Publicity
Interacting with individuals may be draining, particularly when expectations don’t line up or the requests really feel unreasonable.
Take my outdated tenants, for instance. They needed me to purchase three lighting fixtures they’d put in. I declined. I had already been versatile in letting them swap out the unique fixtures, so I advised 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 data 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. Possibly 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 principles and mentioned no to swapping out the unique lighting fixtures, this battle would not have taken place. However that is what you typically get for making an attempt to be versatile and good.
Though proudly owning rental properties is without doubt one of the greatest 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 reveals up that they’ve “no thought” what occurred, discovering and vetting new tenants, getting 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 can not 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 predominant causes I left company America was attributable to individuals. Workplace politics, troublesome 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 “excellent” tenants, points come up. That’s why, though I’m nonetheless bullish long-term on San Francisco actual property, I accepted a preemptive supply in 2025 for my outdated major residence that was a rental for one yr.
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 aid.
When you FIRE, you may also determine you don’t need to handle rental properties, for lots of the similar 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 elective, not obligatory.
Watch out with “extras.” When you begin saying sure, tenants could hold asking for extra.
Shield your margins. Bills creep shortly; don’t let small favors flip into huge, 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 either 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 could 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 subsequent one turns into somewhat higher.
Let’s All Perceive And Observe The Lease
On the finish of the day, each landlords and tenants desire a optimistic expertise. Tenants need worth for what they pay. Landlords need tenants who look after the property and are self-sufficient. Neither get together needs to maintain going forwards and backwards with one another throughout your complete time of keep.
This steadiness is achievable, however solely when either 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? In that case, how did you pull it off?
On the finish of the day, I feel setting expectations is the inspiration of a easy landlord-tenant relationship. However I’m curious—how vital 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 need to take care of tenants, late-night upkeep calls, or chasing lease checks—however nonetheless need publicity to actual property? Try Fundrise. With over $3 billion in property beneath administration and a minimal funding of simply $10,
Fundrise focuses on build-to-rent residential and industrial 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 really get pleasure from.
I’ve personally invested over $500,000 throughout a number of Fundrise funds and several other accounts, and so they’ve been a long-time sponsor of Monetary Samurai. With the Fed slicing charges once more and three years of underbuilding attributable to excessive financing prices, I anticipate to see continued upward strain on rents within the years forward.
