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. Once you’re coping with individuals and certainly one of your most useful belongings, the margin for frustration is excessive.
If you wish to be a profitable landlord—and never get run over—you should 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.
San Francisco’s Scorching 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 house costs close to all-time highs, mortgage charges nonetheless elevated, and the continuing AI boom 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. I listed it on Craigslist on a Tuesday and was instantly bombarded with curiosity.
By Saturday, I hosted two non-public showings for glorious potential tenants. Each teams wished 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 had been organized, enthusiastic, had nice jobs, and glorious credit score. It was troublesome to decide on between them, so I requested every to submit their finest supply. Inside 10 days, I had chosen the tenants, collected the deposit, and obtained the primary month’s hire.
Every little thing was shifting easily. Or so I believed.
Getting ready The Home For New Tenants
As a result of my spouse and I had been genuinely enthusiastic about this household, we put in further effort to organize the house. Over two weeks we painted partitions and trim, spackled and sanded uneven spots, scrubbed every part down, and did a large quantity of yard work. It was as if we had been prepping the home on the market.
Our earlier tenants had been stable, however that they had uncared for the yard. So my youngsters and I rolled up our sleeves and reseeded, trimmed bushes, pulled weeds, and watered every part to convey it again to life. Rental property maintenance with the kids is one thing I’ll often do to construct their work ethic and data. By move-in day, the home regarded recent, clear, and able to be loved.
There’s a deep satisfaction that comes from handing over a property in nice situation. It units the tone for the connection. You hope the tenants will see the pleasure of possession and reciprocate by taking good care of the place. Additional, you mentally really feel good realizing your property is in nice form earlier than handing it off 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.
- Good friend arriving at 11 to assist unload a van of extra delicate objects the tenant introduced.
- Most important movers coming at 11:30 with a big truck.
Every little thing about him was orderly and respectful.
The spouse confirmed up later, round 11:15, clearly confused from the packing and logistics at their previous place. The enjoyment she’d proven when she shouted, “I need to transfer in proper now!” was nowhere to be discovered.
After I greeted her with a smile and a “hey,” she barely regarded up. No massive deal, I informed myself—this can be a enterprise transaction, not a friendship. Transferring is tense and so much will need to 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 exterior working within the yard. This was encouraging. I pulled over to say “hey,” 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 “hey.” 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. 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 an awesome product for the hire individuals pay. That’s why I used to be a bit of stunned.
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. Actually, it explicitly states tenants are chargeable for sustaining the yard and vegetation.
Through the non-public 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 essential. If one thing isn’t within the lease, it shouldn’t out of the blue change into a requirement.
The Slippery Slope Of Giving In
Right here’s the hazard: when you begin giving in to further requests, expectations balloon.
In the event you purchase and unfold mulch, what’s subsequent? A Toto Washlet at your expense? Recent landscaping? A repainted entrance door of their favourite coloration when the previous door was completely wonderful? The listing might be infinite.
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 position shifts from proprietor to on-call service supplier. That semi-passive income 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 hire, 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 all the time says sure, saying no later turns into a lot more durable. Bear in mind, as somebody seeking financial independence, your belongings should give you the results you want, not the opposite approach 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 might decide it up themselves and unfold it round. At roughly $10 a bag, that may cowl about 15–16 luggage, which felt cheap.
This fashion, 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 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 start out the connection off on the appropriate foot. A bit goodwill to start with can go a good 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, so that they assumed that was customary.
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 wonderful with refreshing it each couple of years if wanted. I even instructed they spray some Rock Glue to assist preserve the mulch in place and informed them I’d cowl the price of that too.
In the long run, what may have been a sticking level became a small win-win. They’ll get the spruced-up yard they wished, and I bought peace of thoughts realizing we’d began our landlord-tenant relationship with a bit of cooperation as a substitute of battle.
I’m assured they’ll change into nice, caring tenants—that’s why I selected them within the first place. To start with, it’s all the time a leap of religion.
Why Strict Guidelines Construct Higher Relationships
Suppose again to high school. Bear in mind the strict instructor who laid out guidelines from day one? At first, you thought she was harsh. However by the tip of the 12 months, she was your favourite instructor. Why? As a result of the foundations had been clear, honest, and constant.
The identical precept applies right here. Clear guidelines create mutual respect. They only should be reviewed and understood by each events.
In the event you’re a tenant: learn the lease fastidiously, 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 tasks, and provides tenants a day or two to lift questions. You should be as thorough as potential. Preserve enhancing upon your lease for subsequent time.
That small effort on the entrance finish can prevent huge frustration down the highway.
Why I’m Decreasing My Landlord Publicity
Interacting with individuals might 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. Actually, I discovered the entire alternate exhausting. I by no means would have requested my landlord to buy lighting fixtures I selected for myself. Possibly it was a cultural difference. 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 pointless alternate 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 among the finest methods to construct wealth and safe your retirement, I’ve merely reached my restrict for desirous to cope with all the problems. I can not wait to promote one other rental property in a few years to qualify for the tax-free exclusion rule.
Landlording Can Be Like Working A Company Job
One of many most important causes I left company America was attributable to individuals. Workplace politics, troublesome personalities, and fixed requests wore me down after 13 years.
Being a landlord is usually no completely different. Even with supposedly “excellent” tenants, points come up. That’s why, regardless that I’m nonetheless bullish long-term on San Francisco actual property, I accepted a preemptive offer 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 venture capital—investments that require zero individuals administration. Shifting semi-passive rental revenue into really passive investments has been a aid.
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.
- Don’t change the phrases midstream. If it’s not within the lease, it’s optionally available, not necessary.
- Watch out with “extras.” When you begin saying sure, tenants might preserve asking for extra.
- Shield your margins. Bills creep shortly; 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.
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 adjustments solely with prior approval—and at their very own expense.
It is good to study from each new tenant to make the following expertise 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 take care of the property and are self-sufficient. Neither get together needs to maintain going forwards and backwards with one another throughout your entire time of keep.
This steadiness is achievable, however solely when either side clearly perceive and observe 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 feel setting expectations is the inspiration of a easy landlord-tenant relationship. However I’m curious—how essential do you suppose it truly is, and the place do you draw the road?
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