A Changing Landscape for Real Estate Investors

When I began my real estate investing journey back in 2006 (yes, right before the financial crash), the primary threats to the industry were familiar: rising interest rates, fierce competition for deals, and an impending mortgage-driven economic meltdown.
After the crash, financing dried up, and banks became hesitant, creating major hurdles. As the recovery gained traction but construction lagged, inventory shortages made finding good investments harder than ever. Then came the COVID-19 pandemic, intensifying housing demand — and, ironically, inflating property prices.
Today, however, a new and growing threat is shaping the future of our industry: politics.

How Politics Has Become a Major Risk for Real Estate

Political pressure against landlords has intensified, in ways we haven’t seen for decades.
During her campaign, Kamala Harris proposed legislation that would remove mortgage interest deductions and depreciation benefits for investors owning over 50 single-family homes. While unlikely under conservative administrations, such proposals could easily resurface when political power shifts.
Across the country, states and cities are enacting policies that heavily favor tenants. Examples include:

• Expanding rent control regulations.
• Banning discrimination based on tenants’ income sources (24 states and over 150 cities have these laws).
• Limiting or banning the use of credit reports for screening tenants (like Minneapolis has).
  And let’s not forget the sweeping eviction moratoriums during COVID-19.

While not all these regulations are unreasonable — tenants do deserve protections from truly predatory practices — the pendulum is swinging hard, and the rhetoric from activist groups is even more concerning.
Some organizations advocate for radical ideas like taxing 100% of home appreciation or removing private ownership from housing entirely. Groups like People’s Action, Partners for Dignity, and The Eviction Lab at Princeton actively push these narratives.
Even serious commentators like Roger Valdez have warned about a potential “nationalization” of private rental housing — an idea that, while extreme, highlights the tension we’re facing.

At the root of this hostility is a misconception that landlords simply sit back and collect massive profits, ignoring the economic pressures we also face: maintenance costs, taxes, turnover, and market risks. Rising home prices — driven largely by underbuilding and growing demand — have exacerbated affordability issues, fueling resentment among younger generations who struggle to buy homes.

The Damaging Landlord vs. Tenant Mentality

Part of today’s adversarial climate comes from a false “us versus them” mentality between landlords and tenants.
But in reality, these roles are fluid.
Many investors, myself included, were tenants long before becoming homeowners or landlords. I’ve personally rented for years before buying, and this is typical — most landlords were once tenants.
Similarly, tenants often become homeowners and even investors over time.
Labeling tenants as “the opposition” makes little sense when many of us have walked in their shoes.

Of course, bad tenants exist — just as bad landlords do.
We’ve dealt with tenants causing tens of thousands in damage or even engaging in criminal activity. Conversely, we’ve seen horrifying cases of slumlord negligence leading to mold infestations, collapsing ceilings, and vermin outbreaks.
Still, most problematic tenants and landlords aren’t malicious — they’re often victims of circumstance, poor decision-making, or inadequate resources.

Recognizing this shared humanity is crucial, especially when activist rhetoric grows louder. As landlords, we must resist reacting defensively by broad-brushing all tenants negatively.

Why Tenants Should Be Treated Like Clients

One of the best ways to improve the landlord-tenant relationship — and protect your business — is to treat tenants like clients.
Just as a real estate agent views their buyers and sellers as valued customers, landlords should see tenants as crucial stakeholders in their success.

Consider this:
Studies show doctors who communicate more openly with patients face fewer lawsuits. Respect breeds goodwill.
The same applies in property management.

For instance, my brother once prevented a lawsuit — and even secured a future rental agreement — by treating an angry tenant as a partner, not an adversary. By framing policies (like fees) as fixed by law or company rules rather than personal decisions, he positioned himself as an ally rather than an enemy.

Happy tenants = longer leases = less turnover.
And turnover is one of your biggest hidden expenses, often even larger than property taxes.

Here’s how you create a tenant-as-client experience:

• Prioritize Maintenance: Reliable repairs lead to higher renewal rates.
• Communicate Transparently: Especially during delays or major repairs.
• Stay Firm, But Fair: Enforce rules consistently without hostility.
• Show Respect: Even if tenants fall behind, approach every situation professionally.

For deeper strategies, Jeffrey Taylor (“Mr. Landlord”) offers excellent insights. His methods — rooted in hospitality best practices — have helped him double tenant retention, drastically improving profitability and reducing stress.

Treating Tenants as Clients Is Smart Business

Ultimately, thinking of tenants as clients isn’t just ethical — it’s profitable.
It minimizes costly turnover, reduces conflicts, and fosters an environment where tenants view you positively — even when issues arise.

More importantly, this mindset helps repair the broader reputation of landlords, combating anti-housing narratives by leading through service, not antagonism.

Final Thoughts

This isn’t meant as a reprimand to fellow investors — far from it. Most landlords genuinely care about their properties and tenants.
But in today’s climate, where the political and social tides are shifting, being intentional about how we treat tenants matters more than ever.

Criticism from activist groups shouldn’t provoke hostility toward tenants as a whole.
Instead, we must acknowledge the reality that landlords and tenants are not natural enemies — often, they’re simply the same people at different stages of life.

By treating tenants with professionalism and respect — as valued clients — we not only elevate our businesses but also safeguard the future of real estate investing itself.

Adopt the tenant-as-client model. It’s good for your tenants, good for your business, and good for the future of housing.

In the previous post: “Is Now a Better Time to Invest in Real Estate Debt or Equity?“