If you're a new landlord, there's a lot that you don't know. In the beginning, you won't know landlord lingo or acronyms and how everything blends together: CapEx, Cap Rate, or Capital Gains...and whether or not they actually matter to you as a new landlord. You won't know system shortcuts that save you money and time. You won't have any idea how to anticipate repairs. If you're lucky enough, you'll figure things out before something major goes wrong.
You know what, I'm just going to call it out now. You are probably going to fall victim to the frugality trap. There's such a widespread belief that landlords should do everything, even their own repairs and maintenance. It's madness! There's such a strong bias out there — you're going to end up doing it too (unless you learn to question it now).
New landlords are so determined to save money, they fall right into the trap. They are willing to do almost anything. Especially if they only have one rental and they're desperate to save every penny. They'll spend hours watching YouTube, listening to podcasts, reading books, and researching laws online. They'll download free leases, addendums, and other forms. It doesn't stop there; they'll send out handcrafted emails or private message every landlord they know looking for free advice. They are not even ashamed to post questions across social media whenever they have issues.
The problem here is they're wasting a lot of time and getting mostly bad advice with no clear strategy. If this is you, it's okay, it happens to the best of us. Landlords are often so concerned with how to do things that save them money, they lose sight of the big picture.
If you're out there trying to collect free advice, recognize that old-school landlords can be narcissistic in the way they do things, and they want them done THEIR WAY — even if there are situations where you’re able to show them there is a smarter, easier, faster, better way...You know the type? They can’t possibly be shown a better way.
They are entrenched with their "myside" bias; their way is the only right way. They'll be the ones to tell you how to swing by your rental and do stuff: check filters and patch drywall holes, everything from mowing grass to clearing drain lines, no job is too small—not even swapping batteries or cleaning house. They especially like replacing and fixing: windows, doors, floors, and toilets... You get it—they do anything and everything to save money. It's madness!
Landlords that don't have systems for protecting their time fall victim to using a reactive approach that's riddled with bad advice. If they are not careful, before they even recognize it, they'll be a jack of all trades, and a master at blaming tenants for their problems. This is a formula for disaster. As a landlord, you risk burning out early or becoming a grouchy slumlord.
It's kinda shocking, the real issue is knowing what not to do. Yes, strategy is more important than tactics. Even if you had all the tools and directions... Without a winning strategy, small-time landlords fizzle out and never build lasting wealth. Everything needs to tie into a real freedom strategy. Anyways that's how I see it... Don't take my word for it, you'll find out if you stay in the game long enough.