This week, I want to share a story. It’s a true one—and not a flattering or easy one. It’s about a situation that went very wrong at one of my long-term rental properties.
Why share it? Partly, yes, it’s a bit of venting. But more importantly, I’m sharing it because real estate investing is often talked about in terms of wins, returns, and upside. The hard moments—the ones that cost time, money, and sanity—don’t always get discussed. And those are often the most valuable lessons.
Here’s what happened
I had tenants in place at a long-term rental. I chose them myself. I liked them. They’d been in the unit for over two years and, up to that point, things had gone smoothly.
Late one night, I received a text saying there had been a fire. The explanation was that cooking oil had been heating on the stovetop, boiled over, caught a burner, and started a fire.
About three hours later, another text came through—with a completely different version of events.
I went to the property first thing the next morning. I told them plainly: just tell the truth. The insurance company would investigate and make its own determination anyway. There was no benefit to spinning a story.
The rental unit’s kitchen immediately after the fire, with visible damage to the stove, walls and ceiling.
Instead, they doubled down with an explanation that didn’t make sense at all.
At that point, I knew they were lying—but it didn’t really matter. The focus shifted to what actually mattered: restoring the property. The damage ended up exceeding $30,000.
The remodeled kitchen, after the fire and necessary renovations.
The tenants agreed to move out a few weeks after the fire, which they did.
Then, five months later, I received a letter in the mail.
They were suing me.
The claims included wrongful eviction, threatening behavior, and demands that I reimburse them for moving and storage costs—as well as lost wages. This part was particularly frustrating, considering they both worked remote jobs.
I had no choice but to go to court and countersue. The judge ruled in my favor on every claim. Still, the process was a massive drain—financially and emotionally. Sitting in a courtroom listening to people lie and attempt to damage your reputation is not an experience I’d wish on anyone.
And the consequences didn’t stop there.
The renovation took about eight weeks. My insurance company dropped me. Only one carrier would take me afterward, and my annual premium jumped by over $2,000 due to the fire.
So what’s the takeaway?
This isn’t about one bad tenant or one unlucky event. It’s about being realistic.
Have a strong, well-drafted lease. Expect problems—even when things seem stable. Build financial and emotional buffers for situations you hope never happen. Understand that doing everything “right” doesn’t guarantee a smooth outcome.
Most importantly, know that resilience matters in this business. Real estate isn’t just about numbers—it’s about handling adversity, staying professional when things get ugly, and moving forward anyway.
You don’t need to enjoy the punches. But you do need to be prepared to take them—and keep going.
Thanks for reading this week’s experience, and best of luck in your investing journey!
-Brock
P.S. This experience reinforced how critical landlord insurance really is—especially when things go sideways fast. If you’re reviewing coverage or shopping for a policy on a rental, you can get a free quote through our partnership with Steadily, a company built specifically for landlords.
