Confessions of a Reluctant Landlady

I never intended to become a landlady, but my pending out-of-state move made it inevitable. I was not about to sell my house as the market was continuing to improve. My vision of a landlord was much like the school lunch lady – usually mid-50s and disgruntled for no readily apparent reason. As someone in my late 20s, I had a hard time seeing myself in this role, though my self-image was the least of my worries. My mind was swirling with questions about my new landlady responsibilities.

Would the tenant trash my beloved first home? What would I be liable for? Can I charge enough rent to cover my mortgage? What tax implications are involved in having a rental property? How do I manage everything thousands of miles away? I knew there were professional property managers I could hire to handle things, but I am a penny pincher and save every opportunity I can.

Being a Generation Y-er, I turn to the internet to solve my problems. Enter the World Wide Web and massive information overload. I read articles seeing messy evictions, costly squatting, the wide range of ways a property can be destroyed from pests to pets to drugs to water damage, and all the things I didn’t even know I didn’t know about renting your house. I started looking into the wide range of leases, tenant screening methods, tax, state, and fair housing laws.

The Dilemma: DIY or Professional Property Management?

I knew that I could save a little money each month on management fees and assume I am smart enough to make the right legal, accounting, and other crucial decisions. On the other hand, I could hire a professional who has a bank of resources, a network of experts, years of experience, and whose living is entirely based on managing rentals well. I knew there were huge financial and legal risks I was exposing myself to by becoming a DIYer.

I also knew that vacancy rates are around 9%, while professionally managed properties boast half the vacancy rate. Vacancy is expensive, meaning a huge loss of rental income plus the cost of turnover, and this fact alone was almost enough to convince me. I knew I could spend time trying to learn about all these subjects and struggle to manage my property from thousands of miles away, effectively letting my house control me. Alternately, I could buy myself some peace of mind and enjoy half the vacancy rates while I spent time adjusting to my new home and job situation, focusing on how to maximize my other assets.

Hiring a Professional Property Manager

I ended up finding a property manager with over 10 years of experience who handles everything for me. The tenant he placed is quite like me – fastidious and responsible. My manager checks on the property regularly, and I get a rent check every month that more than covers my mortgage, management fees, and taxes. So no stress over advertising the property, picking the right tenant, setting rates, rental housing laws, late-night emergency calls, and no disgruntled landlady here. I just get to sit back, collect money, and build equity. I guess being a landlady isn’t so bad after all.

The Rent Control Debate

While my personal experience as a reluctant landlady has been relatively smooth, the broader rental market landscape is more complex. Rent control, a contentious issue, has reemerged as a potential tool to address the housing affordability crisis in the U.S. According to a recent Forbes article, rent control has a long and hotly debated history, with diverging views on its efficacy in promoting equitable housing outcomes.

On the one hand, landlords, for-profit developers, and real estate industry representatives are skeptical of rent control’s ability to provide affordable housing for renters with low incomes and renters of color. They argue that rent control can lead to reduced investments, shifted plans to other markets, and canceled development plans altogether. The National Apartment Association’s (NAA) latest research aligns with decades of data and real-life case studies that all lead to the same conclusion: rent control is a failed policy that brings more harm than relief to local communities.

On the other hand, many tenant advocates and housing policy researchers disagree and feel that policy loopholes or weak regulatory coverage are to blame when rent control fails to improve housing affordability. They believe that rent control can balance power between renters and landlords, increasing stability and affordability for tenants in controlled units.

The Impact on Housing Supply and Affordability

The NAA’s analysis highlights the unintended and detrimental consequences of rent control. According to their research, housing providers faced with the financial strain of absorbing essential maintenance costs are forced to reduce investments in improvements and non-essential maintenance. As a result, 54% said they expect to or would consider selling some assets. This is particularly alarming for the apartment industry as the nation faces housing supply challenges and must build 43 million new apartments by 2035 to meet current shortages and address future demand.

Furthermore, the apartment industry and its residents contribute $3.4 trillion to the national economy and support 17.5 million jobs. Squeezing housing providers with strict rent control regulations risks lowering current supply and limiting future growth, creating a volatile environment for affordable housing across the U.S. and ultimately doing more harm than good for renters.

The Need for a Balanced Approach

While the rent control debate continues, it’s clear that a balanced approach is needed to address the housing affordability crisis. Policies that focus on increasing the overall housing supply, rather than just controlling rents, may be more effective in the long run. This could include incentives for developers, streamlining the construction process, and investing in affordable housing projects.

At HACC Housing, we recognize the complexities of the rental market and the need for a multifaceted solution. We work with both tenants and landlords to promote fair and equitable housing practices, while also advocating for policies that support the construction of more affordable units. By bringing together the diverse stakeholders in the housing ecosystem, we believe we can find sustainable solutions that benefit everyone.

Conclusion

The rental market landscape is constantly evolving, and navigating it can be a daunting task for both tenants and landlords. As a reluctant landlady, I’ve learned firsthand the importance of careful planning, professional support, and a nuanced understanding of the legal and financial implications of rental property ownership.

While the rent control debate rages on, it’s clear that a balanced approach is needed to address the housing affordability crisis. By working together, we can create a more equitable and sustainable rental market that benefits everyone, from tenants seeking affordable homes to landlords looking to build wealth through real estate investment. The future of our communities depends on it.