Lessons from a landlord

My husband and I have been landlords for seven years now. We started out living in one half of a duplex and renting the other. When we moved, we bought another duplex and did the same thing. So now we own four rental properties. Overall, I've been pleased with our experience as landlords, and I've learned some important lessons. I think all of these lessons can also be applied to life in general, and so I share them with you.

1. There are good people in the world and there are bad people; you can't tell them apart by looking at them. After the first tenants we had skipped out on us while owing two months' rent, we found a service that will do background checks for landlords. It's worth every penny. I've met plenty of potential renters who I really liked, until I read their credit history.

2. Don't be bullied; there's always a better tenant out there. I once had a call from a man who was opening an Italian restaurant in town with his brother. When I met with them, all I could think was mafia! They were seriously like people straight out of the Sopranos. Anyway, the house needed new carpet and paint before we could rent it. I told them this. I told them it would be a month before it was ready. They told me I would have it ready in a week. I stood my ground, and they finally stopped calling me when they realized it really couldn't be ready in a week. I always feel like I dodged a bullet with that one (no pun intended).

3. Trust everyone. But file an eviction anyway. We have lost a couple thousand dollars in non-payment of rent by trusting that people really are going to pay us. Now, if a tenant is late with the rent, they get one phone call from me, and one chance to pay me within two days, or I file for eviction. It's easy to stop the eviction process and it lets the tenant know I'm serious.

4. Some people are really good liars. Some just think they are. If you're going to lie to someone, at least make sure it can't be easily refuted by the neighbor who is also renting from your landlord. Because yes, your neighbors really are watching you! My favorite was the couple who swore they didn't have a dog, even though the neighbors could hear it barking, saw them walking it, and (gross!) could smell when it was left in the garage too long without walking.

5. Some people are just weird. As long as they pay their rent, I don't care. We've had a tenant who wanted us to get her a new stove because the clock on the stove was too loud (we didn't get her one). We've had tenants who painted a whole room in paint that could only be seen by black light. One of the current tenants periodically cleanses the house by waving burning herbs around the foundation. None of this bothers me. The first two moved out without owing us anything, and the third pays her rent faithfully.

Eventually, we'll sell the houses, pay the capital gains tax, and "retire" from the landlord business. But the lessons I've learned will last me a lifetime.