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[AJUMP23]

I own a rental home, I have talked about it before. My renters for the last 3 years are moving out, and I did the inspection last night. I came across water seeping through some vinyl plank in the kitchen. I am getting a contractor to come look at it today. I moved the fridge out of spot and the floor looks sunken in a little. It isn't the fault of the renters just wear and tear. The tenants are great. I am sad to see them go. I do have a new family lined up to move in. I just wanted a place to talk about the headache of passive income. I also have to get the washing machine repaired.

The unique thing about my renters and the people replacing them is they are asylum seekers. Great families, fleeing oppression in their home country.

 

[Raven117]

Dear diary

 

[chromhound]

I own a rental home, I have talked about it before. My renters for the last 3 years are moving out, and I did the inspection last night. I came across water seeping through some vinyl plank in the kitchen. I am getting a contractor to come look at it today. I moved the fridge out of spot and the floor looks sunken in a little. It isn't the fault of the renters just wear and tear. The tenants are great. I am sad to see them go. I do have a new family lined up to move in. I just wanted a place to talk about the headache of passive income. I also have to get the washing machine repaired.

The unique thing about my renters and the people replacing them is they are asylum seekers. Great families, fleeing oppression in their home country.

possibility of mold under that floor ? (i'm a building inspector)

 

[AJUMP23]

Dear diary

I did just need to vent.

possibility of mold under that floor ? (i'm a building inspector)

I could use your help today.

 

[chromhound]

I did just need to vent.


I could use your help today.

but foreal, it's hard to find good tenants that won't burn down the house...

 

[AJUMP23]

If they burned it down, I would make a lot of money.

 

[PaddyOCanager]

I used to have a rental property, sold it - I just don't need the headache.

 

[Kev Kev]

I own a rental home, I have talked about it before. My renters for the last 3 years are moving out, and I did the inspection last night. I came across water seeping through some vinyl plank in the kitchen. I am getting a contractor to come look at it today. I moved the fridge out of spot and the floor looks sunken in a little. It isn't the fault of the renters just wear and tear. The tenants are great. I am sad to see them go. I do have a new family lined up to move in. I just wanted a place to talk about the headache of passive income. I also have to get the washing machine repaired.

The unique thing about my renters and the people replacing them is they are asylum seekers. Great families, fleeing oppression in their home country.

Glad to hear they were good tenants.

My buddy traveled abroad for his masters and rented out his house while away. In those short 2 years they nearly ruined his entire home, and moved a convicted felon in without telling him.

Sorry to hear about the damage tho, just part of being the owner I suppose. You’ll bounce back from it and figure it out. Gotta be a good time to be a home owner I imagine.

 

[InfiniteCombo]

but foreal, it's hard to find good tenants that won't burn down the house...

I'm myself a tenant and my landpeople practically beg me to stay for as long as humanly possible.

I keep the place neat and tidy at all times, I'm respectful, don't have loud parties, and only play music a bit loud if the girlfriend I'm with is herself... ahem... kind of loud (wink wink, nod nod). I also make sure to report any issues with the place to my landlord as soon as I know about them. I'm decently handy myself so if he doesn't care sometimes I fix the problem myself, otherwise he quickly hires a contractor.

It's weird, it's not that hard to respect property. It's easy, as a tenant, to keep an apartment in good condition.

 

[AJUMP23]

InfiniteCombo I think people find it easier to be respectful when they are invested. Rental property the people are not invested. It is like children in a sense, they buy nothing so they have no sense of the cost and act irresponsible due to not understanding the cost or value of something.

 

[Fools idol]

I drastically downsized my property portfolio a few years ago. I had 12 single family homes and a 3 bed appartment all rented out to tenants. Managing 13 tenants was a nightmare, Constantly calling me for shit.

I eventually caved and hired an agent to manage it, but most of the time, that just meant it was him calling me instead of the tenants. I sold off 8 of them and kept the appartment and the other few.

Two of the tenants moved out unexpectedly and didnt pay their last months rent, but also didn't claim their deposit back either, so that cancelled out. I have a sus they were growing and or selling drugs cause a bunch of random crack heads kept knocking the door and bothering the new guy.

It's funny - the income is truly amazing when you have a good tenant - but truly horrible when you have a bad one. Family can be even worse since they will be more inclined to ask for IOU's on the rent and use that family tie as leverage.

Never again. Once the last mortgage is fully paid off I will be cashflowing 100% for a few years and then selling up to retire for good, the capital appreciation has been amazing here in the UK. I much prefer stocks and dividends.

 

[HoodWinked]

Once you purchase a property what's the process to actually start getting rent?

Like where do you get a contract. Also how do you get tenants and what do you do about people that are late or stop paying.

These concerns basically stop me from doing it.

 

[Fuz]

Got a rental apartment.
My tenant is a mid 30s guy with wife and daughter. He's very chill and reasonable (his wife a bit less and she sometimes tends to push him to rant about small little things I feel he didn't even wanted to rant about). Been there for 5-6 years. Cool guy. Always pays on time.
Still, sometimes is really annoying to have to manage all that, there's a lot of unexpected expenses and I'd definitely could do without the hassle... except the house prices suck ass for people selling in here.

Also how do you get tenants and what do you do about people that are late or stop paying.

Im here, if they have children and want to stop paying, you can't do jack shit. You can't evict them, it basically becomes their home BUT you're paying all the taxes and expenses. Italian legislation is shit.

 

[AJUMP23]

Once you purchase a property what's the process to actually start getting rent?

Like where do you get a contract. Also how do you get tenants and what do you do about people that are late or stop paying.

These concerns basically stop me from doing it.

Most everything I do is online. I used an online lawyer to draw up a rental contract tailored to my state. I found renters 3 years ago out of luck. Some neighbors had family living with them, saw me in the house, and stopped by to ask if the could look and wanted to know when they could move in. I use to use COZY.co for rent and online expense tracking, but it was bought out by apartments.com. Everything is there now from payments to expenses. I can use them to draw up contracts if I want but I do not. I do put a copy of the signed lease on there for myself and the renters.

When these tenants left I activated the house on Apartments, I have had 25,000 people look at it, and 10 or so ask for a tour. I did not use any of that because the Tenants had some friends that needed a place. We signed everything yesterday and they will give me the deposit and down payment tonight.

If a Tenant doesn't pay, then there are eviction proceedings that we go through. Fairly straight forward here in the south. The laws do not particularly favor one party more than another. You pay and you stay.

 

[12Goblins]

is looking for disabled tenants a thing? I feel like that would be a good idea

 

[nush]

My buddy traveled abroad for his masters and rented out his house while away. In those short 2 years they nearly ruined his entire home,

When I moved abroad I mothballed my UK home for this exact reason. Don't rent out your own home, renters don't respect it. Rent out a property you bought specifically for renting and fill it with basic stuff you don't mind having to repair or replace.

 

[Sub_Level]

I just wanted a place to talk about the headache of passive income.

Careful, it might not be passive. It sounds like you materially participate in the management of the property, in which case your rental income qualifies for the qualified business income deduction because it can be considered a trade or business. There's a common misconception out there that rentals don't qualify or that you have to spend an aribtrary number of hours on the rental (750 is just a safe harbor, not a bright line).

Does the tenant directly pay property tax, insurance, or maintenance? Because unless you say yes to all three you could be missing out on some deductions.

 

[navii]

InfiniteCombo I think people find it easier to be respectful when they are invested. Rental property the people are not invested. It is like children in a sense, they buy nothing so they have no sense of the cost and act irresponsible due to not understanding the cost or value of something.

I'm invested in not losing my security deposit / bond when I move out.

I pretty much try to treat the property as my own. I'm a bit clumsy but I try to take care of it as much as I can and fly under the radar hoping they won't raise my rent.

 

[chromhound]

I drastically downsized my property portfolio a few years ago. I had 12 single family homes and a 3 bed appartment all rented out to tenants. Managing 13 tenants was a nightmare, Constantly calling me for shit.

I eventually caved and hired an agent to manage it, but most of the time, that just meant it was him calling me instead of the tenants. I sold off 8 of them and kept the appartment and the other few.

Two of the tenants moved out unexpectedly and didnt pay their last months rent, but also didn't claim their deposir back either, so that cancelled out. I have a sus they were growing and or selling drugs cause a bunch of random crack heads kept knocking the door and bothering the new guy.

It's funny - the income is truly amaIng when you have a good tenant - but truly horrible when you have a bad one. Family can be even worse since they will be more inclined to ask for IOU's on the rent and use that family tie as leverage.

Never again. Once the last mortgage is fully paid off I will be cashflowing 100% for a few years and then selling up to retire for good, the capital appreciation has been amazing here in the UK. I much prefer stocks and dividends.

Stocks and dividends are less of a headache $QYLD

 

[SecretAgentHam]

Stocks and dividends are less of a headache $QYLD

Less of a headache but real estate investing has way too much upside to completely ignore it. OP is doing it right even if he is having a bad time right now. Eventually, the issues will be fixed and he'll be receiving rental income without much work on his end. It's all peaks and valleys.

 

[Fools idol]

the reality is if you are working and saving you don't need a huge amount down to get into your first rental. Once that first paychecque comes in from a passive source your life changes forever.

$60,000 invested at 10% annual yield = $6k a year, or $500 a month. That is before taxes of course but you get the point. In the UK a 10% deposit for a buy-to-let mortgage is easy enough to secure right now.

The math of it is quite simple ~

lets say you have 30k of savings. That gives you two 10% deposits of 15k on two 150k houses.

If they both yield 10% a year you earn your 15k deposit money back to buy a 3rd very quickly, and it snowballs. It took me about 5 years to reach 4 properties.

 

[nush]

lets say you have 30k of savings. That gives you two 10% deposits of 15k on two 150k houses.

Where are you buying those 150k houses though?

 

[Ozzy Onya A2Z]

Where are you buying those 150k houses though?

Yeah in Australia metro, for anything decent in apartments or units you're pushing 400-500K for an apartment in semi major cities. In the major cities like Sydney or Melbourne you're pushing 600-750K. In terms of "houses" you're pushing well beyond that.

 

[Fools idol]

Where are you buying those 150k houses though?

the north of the uk is a good place to start. LIncolnshire, Manchester, sheffield and surrounding areas. South wales is also very good. Average rent on my current portfolio is £750 a month. 3 years ago it was £500

I am looking at a small town in the north at the moment called Bridlington. It's easy to find £125-150k houses that rent out for £6-800 a month. A dream to be honest. Capital gains potential too.

It's a dumb myth that you must invest in the area you live in. None of my current properties are within 500 miles of my house. Just find a local agent that knows the areas you are buying into.

 

[InfiniteCombo]

Yeah in Australia metro, for anything decent in apartments or units you're pushing 400-500K for an apartment in semi major cities. In the major cities like Sydney or Melbourne you're pushing 600-750K. In terms of "houses" you're pushing well beyond that.

Are these amounts in Australian or US dollars?

Asking for a friend

 

[Ozzy Onya A2Z]

Are these amounts in Australian or US dollars?

Asking for a friend

AUD.

 

[AJUMP23]

Update on the floor. No mold just a little water leak from the fridge. Hopefully it will all get fixed today.

I am going to leave work here in a minute and clean the house.

 

[Meicyn]

Once you purchase a property what's the process to actually start getting rent?

Like where do you get a contract. Also how do you get tenants and what do you do about people that are late or stop paying.

These concerns basically stop me from doing it.

I pay a property manager to handle all the day to day stuff. They take 10% of the rent each month, but it’s completely worth it to me since they have a lawyer there to handle any bull, and I only get involved if there’s a financial decision to be made such as putting in a new floor, or doing income taxes. Being completely hands off is nice. The 10% means nothing to me. Finding a good property manager is important, my first one was shit and all it did was cause me stress defeating the point of the property manager in the first place.

My yearly income tax return goes straight into an emergency fund to help pay for unplanned issues. Any surplus past $20K goes directly into stocks. Rental income is great, but it’s important to make sure you take care of your tenants. Happy tenants make for longterm and respectful tenants that always pay on time. I follow a simple rule of thumb: don’t do the things you hated when you lived under a landlord. I keep my rent rates below the market average and I never increase them until a tenant leaves.

As was mentioned, you do not need to live where you rent out property, though if you plan to directly manage it yourself, it helps significantly. I recommend working towards getting started. The sooner you do, the sooner you can reach financial independence where you work because you choose to, not because you have to.

 

[Burning Blade]

My wife and I briefly had a rental property and found it much easier to have an agency manage the place instead of taking on all the headaches ourself. Might be worth a look.

 

[Punished Miku]

is looking for disabled tenants a thing? I feel like that would be a good idea

I can't quite tell if this is hilarious or not.

 

[flying_sq]

Do you get something from the government for asylum seekers?

 

[AJUMP23]

Do you get something from the government for asylum seekers?

I do not. They pay rent and don’t want an eviction if they want to attain citizenship and green card.

 

[Winter John]

I got my old place over in Billings and my dad's apartment in the Village. I rented out the one in Billings. It was ok. Didn't have any problems from the tenant but there was something about having a stranger in there I couldn't get used to. I was going to sell it but I like being a land baron. I'm going to get myself a cape and one of them monocles, then go round taunting orphans.