Apologies for the commercial, but I strongly recommend this book for would-be landlords:
The author speaks strictly from experience and provides realistic numeric examples when appropriate, and no, I don’t know him personally; I bought his book and have been happy with it.
Going back to the topic at hand, the author recommends being friendly with your tenant, but only up to a point. He says that it’s not good for tenants to know too much about your personal life, which is information they can use to their advantage if they ever decide to sue you for any reason.
Living close by to your rental sounds great, but right next door might not always be optimal.
