Owning real estate is a mixed bag of experiences for me, with its fair share of ups and downs. The more rental properties you have, the more challenges you face as a landlord.
In mid-2022, I decided to lease out a single-family home I had bought in 2019 to a new family. Our original plan was to move into this house once renovations were complete. However, the remodeling process, extended by the pandemic, took much longer than the anticipated one year, stretching to two and a half years. Consequently, when another renovated home came up for sale in 2020, we seized the opportunity and moved there.
Initially, a family rented the top floors of our old house while the ground floor was being remodeled. Once completed, a new family of three moved in, paying a higher rent. Fortunately, they have been reliable tenants, paying electronically each month and causing less wear and tear than the previous occupants.
Despite being newly remodeled, the house wasn’t free of maintenance issues. In November 2022, a tenant reported a leak under the kitchen sink, which turned out to be a cracked p-trap pipe, easily fixed for $150. Then in January 2023, after heavy rains and winds, the old wooden fence, shared with a neighbor, needed replacing, which cost us $2,600 split between us.
These incidents, along with the desire to spend more time with my family, are why I’m leaning towards private real estate investments.
Another issue arose when a tenant reported a beeping smoke alarm, which they couldn’t locate or fix as it was hardwired. This prompted me to visit the property with my son, turning it into an educational experience for him.
I engaged my six-year-old son as “Inspector J” to help locate the beeping sound, promising him popsicles if successful. Surprisingly, we also struggled to identify the beeping alarm. Eventually, we realized the sound was emanating from inside the walls. Upon reviewing construction videos, I discovered a forgotten battery-operated alarm left behind before the sheetrock was installed.
We informed the tenant, who agreed to wait for the alarm’s battery to run out. This experience underscored the importance of documenting all stages of construction.
Dealing with these rental property issues has taught me the value of attention to detail in remodeling and the need to adjust my mindset as a landlord. I now view these situations as opportunities to teach my children valuable lessons:
- Problem-solving and conflict resolution: These experiences teach children how to approach and solve problems effectively.
- Effective communication: Navigating these issues requires clear, respectful, and empathetic communication.
- Expanding vocabulary: Terms like ‘inspector’, ‘permits’, and ‘remodeling’ enrich a child’s vocabulary.
- Understanding financial planning: Managing rental properties can prepare children for future responsibilities and financial understanding.
- Realities of financial freedom: These situations demonstrate the effort required to achieve and maintain financial freedom.
Three weeks later, the alarm was still beeping, so I had to intervene again. My handyman removed the alarm for $100, and I spent some time patching and painting the wall, along with removing stains from the carpet. This reinforced the difference in care between owning and renting a property and my preference for not expanding my rental property portfolio.
