I think that people overestimate the problems. I spend very little time on my properties once they are rented out. If you are picky about tenants, hire a good property management company to deal with the little stuff, and offer a good product, you are likely to have few problems.
I've lucked out with the 4 sets of tenants I've had so far, in that I knew them beforehand (3/4 I actively pursued to become my tenants). I've never had to advertise my property. I charge what they can pay, but in 4 years I've never had a consistently late payment (errant late payment here and there, and only by a week or less), and I consider it an investment in a good tenant. I also stipulate in the lease that they take on the basic roles of property managers in exchange for below market rent, only notifying me of major issues. They take care of yard work, and pay out of pocket for pest control (I only pay for termite control/monitoring because of the expense of damage), and they schedule and meet with service providers on the property (after I authorize service), and they report back to me...or depending on the service I'll speak with the provider over the phone while they are at the property. I'd rather split the savings of hiring a management firm, with myself and the tenant, especially if that means I can control the quality of the tenant (all within legal parameters of course).
There are quite a few things in my favor though. The property is located in a desirable area, walking distance to a campus that hires low-paid professionals (I've learned that gratefulness is more binding than a contract) in the science field, and I happen to work there part time, so it's easy for me to "fish" for tenants. Because of the lifestyle value of the area, and convenience of walking to work, I have never been turned down "courting" someone to live there; leases have been broken lol. So I plan on buying most if not all of my properties in this same area, and keeping a low prof. I'm not out for guts and glory....I'll gladly take a hit on profit for a quality tenant and less headache. The less negative experiences I have, the more likely I am to continue and expand with real estate investing, and the more money I can earn in the long-run.
I genuinely enjoy helping someone find a place to live that changes their life for the better, and I like nurturing a relationship with my tenants to the point it really feels like a partnership. My favorite experience as a landlord, was working with a tenant to figure out a plumbing issue, literally YouTubing it together and shopping at Home Depot, and ultimately fixing it without having to call a plumber. We both got valuable experience and gained confidence. I've had more than one tenant tell me that helping out with maintaining a house has inspired them to work towards homeownership. I know that woowoo stuff isn't for everyone, but it's nice when you get invited to a tenants' housewarming party :)
And I'm not totally blind to earning profit. This area continues to rise in value and the neighborhood is changing for the better, so I feel I can "give" in terms of rental profit without feeling like I'm leaving money on the table, since if I ever decide to sell properties in the future, I'll make out nicely. The facility that provided 1/2 of my tenants is not going anywhere. It's a tourist destination on city property (for over 50 years) and they just expanded, with future expansions on the way.
