When you don't have the temperament

[sidinz]

I'm a sensitive type who's always taken things too personally.

I also have two IPs that I lived in while doing them up. Lots of (literally) blood, sweat and tears in every wall. So it gets to me when I have to (or so it seems) do it all over again a few years later because tenants have been rough on them, tried to hide the damage with botch-up jobs and been let down by property managers who haven't noticed (!?) and refunded the entire bond.
I'm currently finding it hard to swallow that the brand new kitchen I designed and the bathroom vanity that I searched high and low for are both swelling (MDF) due to tenants not ventilating the property and that the newly-laid carpet from a couple of years ago has to be replaced, again, on my dime. Not to mention the rest of the metre-long to-do list.

So how do you divorce yourself from the emotions? Have people here managed to overcome the anger, frustration, depression etc. to keep going, or is it best to admit that one just isn't suited and move on?

I'm also a bit of a procrastinator, which perhaps isn't ideal in a landlord.....

[Tan]

When you are doing up a place, bear in mind it needs to be hardy, but still nice and liveable. Are you investing the the right area to suit your expectations?

Sometimes it all goes wrong for no reason, and you can only hope for better in the future. Is your property manager a good one?

When I buy my rentals I don't see them as mine - they are now the tenants. Even my own home which I have now rented since I moved to Aus, I worked out how much it would cost to do it up when/if I return and put it out of my mind. Perhaps that mindset would help?

I look at the figures - income less expenses (incl repairs) and that is my focus, I can't even remember what they necessarily look like, but I know they are in a good possie for whatever reason and their return to me.

What was your reason for getting into property? Keep it top of mind.

Good luck in the future - I have been known to shed a few tears (quietly) over the state of a place, but it all seems to come right over time if you have invested in a good place.

I forgot to comment on the procrastinator remark - you HAVE TO do maintenance ASAP or the tenants will get annoyed (and remember like an elephant) or the law will get you. I go with what my trusted PM says, but I know them well. Even if no-one else can get through, I reply to them and get things fixed. Don't even think, do it!

[Glizzle]

So how do you divorce yourself from the emotions?

I view my Property investments as products, they are just a object that are built and put together to suit a certain clientele. Like a business selling products, you need to know your demographic to maximize success, the better you understand your market the more profit you can make my putting together a product that best suits at the most economical to make it fit for there living experience and expectation.
Your always going to run into issue but minimizing those risk is what separates great from good.

[Bluekiwi]

I once spent (wasted) 3 weeks of christmas holidays (instead of spending time with my children), fixing up and renovating (i am the "Anti-Handiman" by the way) three rental properties.

Never again.

I have 3 people I use now, Painter Handyman, Builder Handyman, Handyman Builder.
They are good, but not expensive, as they dont have offices and overheads.

I have property manager who deals with all the shit.

Suggestion:
Hand this all over to experts who will do it better and 20 times faster than you.

Spend "Your" time.
Finding a good property to flip.

And do one flip per year, project manage it, make about 20k so you dont feel bad about spending money on trademen

[skid]

Im sure everyone can sympathize with your situation.
As one poster mentioned ,the area where your properties are is a major factor.
If they are in a lower income area like south Auckland,then you may need to do up your properties in a more no frills ,robust and functional way(im sure you have learned from the mdf experience)(its a horrible product in wet areas)
But ,by far the most important factor is maximizing the potential for getting good tenants(your bread and butter as they say) If you use a property manager,then getting a good PM proceeds the former issue.
A good tenant who looks after the place3 will bring you peace of mind (and vice versa)
After that ,as was said ,regular maintenance checks will hopefully keep potential problems manageable(before they become big problems)
There are also lots of maintenance tricks to be learned(such as keeping a supply of the original color paint so if 1 wall needs repainted you dont have to muck around for ages getting the color matched)
If you can find a group of really good tradesmen,that is invaluable(always write down numbers of tradies that friends have recommended) so you can hopefully get a basic group on deck for emergencies or maintenance (regardless of whether your PM has some)
It sounds like you have repeatedly had tenants that disregard things and cause damage--this should not be the norm-There are good tenants out there and that should be your priority.
Get that right and provided you or your PM doesnt get lazy peace of mind should hopefully follow

[PC]

Being a LL is not easy.
The returns are ordinary and the media & government are out to get you.
Tenants are very rough on your properties.
Any positive sentiment you have towards tenants dies pretty quickly after the first few $000's of repairs.
Getting justice through the TT is unlikely.

PM's in general are poorly paid part time women - too soft and terrible at managing tenant damage.

You need to harden up, treat it as a business (i.e. WORK), find better PMs and actively manage them.
Chase those tenants for every cent of damage they've caused and also pursue the PMs for not doing their jobs.
That or share investing is much easier.

[Davo36]

Yep, Sidinz, I feel this way pretty often too. I use a property manager and make sure the tenants selected are really good.

On the commercial side, I've just lost a year's rent to a crooked accountant. And I've been in this game for 17 years. Totally not my fault, nothing I can do about it but re-lease the premises and move on.

Seriously, if it's too much, then maybe consider shares? I don't say this as a put down or anything. There's actually lots of benefits to them, one being that you don't get so attached and certainly don't have to spend your time fixing them.

[skid]

[QUOTE=Davo36;319661]Yep, Sidinz, I feel this way pretty often too. I use a property manager and make sure the tenants selected are really good.

On the commercial side, I've just lost a year's rent to a crooked accountant. And I've been in this game for 17 years. Totally not my fault, nothing I can do about it but re-lease the premises and move on.

Wow! That sounds like a story in itself!

[Davo36]

And I have blogged on it...

See the thread here called How do I Bankrupt Someone? And my own blog, search under the Davo Tries Again tag, or just look at some recent posts.

[sidinz]

Thanks for replies. I'm not using a PM, as each time I've tried in the past, they've ended up costing me thousands.....and I'm not talking about their commissions! Incompetent or negligent - take your pick. They are also inclined to throw multiple tradesmen at a problem costing $100s when a five-minute fix was all that was needed.

The last ones failed to do pre- and post-tenancy inspections which means that I had no comeback on any damage/missing items. And these were industry award-winners! They also gave a tenant permission to carry on a business at the premises without telling me, which was in clear violation of my insurance conditions. Then they basically broke the law by taking money from one entity to pay a 'debt' 'owed' by another entity. I could go on and on about their misdeeds......

Both IPs are in reasonable areas and are fairly well presented.

I am probably better suited to flips, (I did a good job of tarting up the current two) but don't currently have the working capital. Part of the reason that my renovations were so successful is that they were done on the smell of an oily rag by doing most of the work myself while living in them. I guess that's why it 'hurts' to see so much of my hard work undone by uncaring tenants. I just don't understand what on earth they do, to cause some of this stuff.

I have yet to find a good builder/handyman who'll do a reasonable job for a reasonable price so I'm still doing my own maintenance.

[Tan]

How about letting us know what area you are investing in and the recommendations will flow....

[Top Notch Investor]

I have my IP's in Sth Auckland and whilst I found it hard at the beginning with the tenants I was getting - I now no longer find it hard. I was like you at the start very emotional about my properties until my Property Mentor told me to get over it - so I did. I've had tenants trash my houses and cost me thousands - this doesn't happen anymore. My houses are renovated to a standard that suits the area and the tenants. If my houses sit empty for 6 weeks to get the right tenant then so be it. I ask for high rents which weedle out all the people that are going to abuse my properties and I get quality tenants. I put them on monthly inspections so if anything happens I can deal with it asap. I document everything after each inspection so if it does go to tenancy tribunal (which it rarely does cause I don't have time for it) but at least the tenants know where they stand, vice versa if the tenant wants something ie maintenance wise then I deal with it asap, if they want something as an extra then I may compromise at times. Its all about having a good relationship with your tenants, what I do find that works very well when renting out a property is I let the tenant do all the talking at the start, once they've looked around the property and they are interested I then give them a ten minute run down on what i'm like as a landlord, and I don't hold back. I then give the tenant the opportunity to go away and think about it before returning the application forms. The ones that return are the good ones that want a landlord like me, the others don't return because they know i'm not a pushover.

If you go to an inspection and you've had to issue a 14 day notice for breach and you go back and they haven't actioned the breach issue the 90 day notice onsite. Remember the is a business its not a charity and there are tenants queuing up waiting for a rental property. Don't be frightened to kick people out, you've got the opportunity to get new tenants in and raise the rent.

This is how I landlord and I get positive results through it too

[DaveW]

What was your reason for renovating the property? Your answer will tell me if you are in the right business.

[sidinz]

Because I wanted to add value. Both IPs were properties that I could do something with, to varying degrees, as is my home. I come from a family of renovators. It's possible that I'd be better suited to flips, but right now don't have the capital.

[DaveW]

After the renovation did you make any extra value?

and if so, then did you make any use of that extra value?