Being a landlord comes with its fair share of highs and lows. Whether you’re managing a single rental suite or building a portfolio of income properties, it’s important to understand what you’re getting into. Let’s break it down: the good, the bad, and yes – sometimes, the ugly.
The Good: Passive Income & Long-Term Wealth
One of the most rewarding aspects of owning rental property is that your tenants help pay down your mortgage while your property appreciates in value. Ideally, you’re also earning positive monthly cash flow after expenses like taxes, insurance, and maintenance are covered.
It’s no coincidence that over 90% of millionaires have built wealth through real estate. Done strategically, landlording can be a powerful long-term investment that generates steady income and capital growth.
The Bad: Hard Work, Vacancies & People Management
Despite the financial upsides, rental properties are not a hands-off investment. You’ll need patience, organization, and the ability to work with many different personality types.
Every vacancy means advertising, fielding inquiries, hosting showings, screening applicants, and checking references—often while juggling dozens of emails and calls. Even once you find a suitable tenant, life happens: job losses, breakups, or roommates moving out can lead to late rent or early move-outs. Then there are the inevitable property issues: leaky fridges, clogged drains, or broken appliances.
Being a landlord is a business, and business requires effort.
The Ugly: When Things Go Seriously Wrong
Sometimes, things can go off the rails. A nightmare tenant may damage your property, over-occupy the unit, stop paying rent, or even cause costly repairs by flushing inappropriate items down toilets (yes, it happens). These situations can be financially and emotionally draining—and unfortunately, they’re part of the reality for some landlords.
Are You Cut Out for Landlording? Ask Yourself These Questions:
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Can you commit to a long-term plan?
Real estate rewards those who think long term. It’s not a quick win – you’re building wealth slowly over time. -
Are you a strong communicator?
You’ll need to speak clearly, listen well, and deal with all kinds of people. Effective communication helps you find great tenants and resolve issues before they escalate. -
Can you handle conflict?
Landlording comes with stress. Things won’t always go your way, but how you respond will determine your success. Staying calm and professional is key.
What About Hiring a Property Manager?
Hiring a property manager can reduce stress, especially as your portfolio grows. However, there are trade-offs:
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It cuts into your profits
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No one will care about your property quite like you will
If you’re new to landlording, managing your first property yourself can be invaluable. It gives you practical experience that will help you better evaluate and oversee property managers in the future.
Tips for Becoming a Professional Landlord
Whether you’re renting out your basement suite or multiple apartments, treat your rental like a business. This includes understanding and following the Residential Tenancy Act and Regulations. Never assume something is legal just because it’s in your lease—when in doubt, contact the BC Residential Tenancy Branch for guidance.
Do your due diligence: Thorough screening is crucial. Review applications carefully, check references, and trust your instincts.
Document everything: Maintain clear, respectful communication and keep records of all interactions. This is especially important if a dispute ever reaches arbitration.
Be kind, but firm: Respect and professionalism go a long way. When challenges arise—and they will—you’ll be better equipped to navigate them.
Conclusion: Success is Possible with the Right Mindset
Being a landlord isn’t always glamorous. From late-night maintenance calls to difficult tenants, the challenges are real. But with the right preparation, a business-like approach, and ongoing learning, you can not only survive, you can thrive.
Explore the rest of this site for helpful articles, tips, and downloadable rental forms, including tenancy agreements, receipts, pet clauses, and more. With the right tools and mindset, you’ll be well on your way to becoming a confident and capable landlord.
