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Questions tagged [rental-property]

Questions around the use of property that is rented to others.

52
votes
8answers
25k views

Why is rent going up in an apartment complex with multiple units sitting unrented?

I'm moving to a new city at the end of the month and am looking for an apartment. I found a property that I like, but the rent was a little more than I wanted to pay. So I decided I would take a risk ...
48
votes
17answers
20k views

Tenant wants to pay rent with EFT

I live in Kentucky, USA. I rent out a house in Alabama, USA. My tenant wants to pay rent using electronic funds transfer rather than by mailing a check. This makes it easier for him to get my payment ...
46
votes
12answers
21k views

How much more than my mortgage should I charge for rent?

We're considering moving at some point in the future, and right now we have a mortgage on our home. So far we've been here about 3 years, and we're considering renting out our home. Obviously there ...
45
votes
7answers
5k views

In general, is it financially better to buy or to rent a house?

I know this differs from country to country, from person to person (depending on how much you already have saved), but I'm curious about the simplest example. Let's say I have little to no money. I ...
39
votes
6answers
9k views

Why invest in becoming a landlord?

One of the most recommended ways to invest one's money still is real estate. Sure there are different ways to invest in real estate, but why does it make sense financially to buy property and become a ...
35
votes
8answers
5k views

What's the catch in investing in real estate for rent?

I can see a 2 bedroom, 2 bathroom $100k property on Zillow (est. mortgage $375/mo) next to a university so rent prospects are good. Rent estimate by Zillow, confirmed roughly by Craigslist: $972/mo. ...
31
votes
7answers
7k views

Long Distance Landlording

I hate for this question to be overly general, but I think the problem is that I don't know what I don't know. My wife and I are thinking about becoming a long distance landlord/landlady, but having ...
28
votes
2answers
7k views

Charging the company I work for to rent from myself

I have a Vacation Rental By Owner (VRBO) rental in a city that the company I work for (large company - W2) requires I travel to regularly. I am authorized to use either hotels or VRBO/AirB&B ...
28
votes
3answers
7k views

My tenant wants to pay rent through their company: Should this raise a red flag?

I have a tenant in a residential rental property who wants to pay rent through their company. They are asking for my SSN because they say their CPA needs it. Should this raise any red flags?
28
votes
5answers
4k views

Why are residential investment properties owned by non-professional investors and not large corporations?

This question is relevant for Australia but I would think that it would apply to other countries too. I've noticed that nearly all residential investment properties are owned by non professional ...
26
votes
16answers
10k views

How to best invest 90,000 EUR with zero knowledge in investing?

I have 90,000 EUR and difficulty figuring out what to do with it. This money is in a savings account with an interest rate of only 0.05%. Here in Netherlands, I pay around 600 EUR each year on this ...
25
votes
3answers
6k views

Better to rent condo to daughter or put her on title?

We're contemplating purchasing a small condo in MI for our daughter to live in while she goes to law school. This would be an all cash purchase, so no mortgage. If daughter is listed as a co-owner, ...
23
votes
10answers
11k views

Should I sell a 2nd home, or rent it out?

I have recently purchased a home which will presumably be my long-term residence. I have not yet sold my original home, and I am trying to decide whether I should rent it out, or sell it. The 1st ...
20
votes
7answers
31k views

What is a good rental yield?

If you are thinking of buying a property for investment purposes, what is a good gross yield? I've been told you should take 3 zero's off the price of the property, so if a property is worth 400,000, ...
18
votes
3answers
4k views

Is it possible to sell a rental property WHILE tenants are living there?

I am thinking about selling my rental property, but currently there are tenants living there. Is it possible to "hand over" the current leases to a buyer/landlord or do I have to wait for all the ...
15
votes
5answers
4k views

What are the pros and cons of buying a house just to rent it out?

My situation is that I'm 23 and have about $4k a month of spare income after everything. I'm considering buying a house in the area I come from, a relatively cheap area where I have friends who bought ...
15
votes
1answer
372 views

At what point did my former primary residence become an income property?

Last year we bought another house (and moved into it as our primary residence). Rather than sell our previous house, we opted to keep it and rent it out. Since the tax treatment for rentals is ...
15
votes
3answers
2k views

How to choose a good tenant as a private landlord?

I have 2 rental houses and am sick of the real estate agents providing such bad service. I have changed real estates 3 times over the past 5 years and I have come to the conclusion that I am the best ...
14
votes
3answers
3k views

Do I owe a finders fee to my tenant's broker if they didn't bring me the referral?

I am currently using a broker to help me find new tenants for my rental home. Currently, she has only advertised the home on Craig's list. However, at an open house that she was hosting for another ...
14
votes
7answers
3k views

Is there any instance where less leverage will get you a better return on a rental property?

The larger a mortgage I have on a property the less money I have to put up front so my initial cash flow is worse but my cap rate and overall return is better. However the larger my down payment the ...
14
votes
3answers
863 views

My landlord is being foreclosed on. Should I confront him?

I just found out that my landlord is being foreclosed on. My lease agreement runs out at the end of this month, but I had, through email, agreed to stay for another year (no new contract was signed). ...
14
votes
2answers
346 views

If a tenant makes a capital improvement to a leased property, is that income to the landlord?

If a tenant makes a capital improvement to a leased property, is that income to the landlord? For example, let's say I am renting a house to a family and at their own expense they build an addition ...
12
votes
9answers
5k views

23 Years Old, With No Debt. Invest into Rental Properties or 401K?

I am 23 years old and selling my Sports Car/Winter Car to gain economic freedom faster (Don't really need to do this, but I want to). Currently I make around 65K a year and bought a very cheap trailer ...
12
votes
5answers
2k views

Avoid Capital Gains on Rental

I bought my first house in May 2012. I moved into my second (current) house in November 2014. After I moved out of my first house, I began doing repairs on it, and started renting it out around May of ...
11
votes
8answers
15k views

Apartment lease renewal - is this rate increase normal?

It's time for me to renew my apartment lease and the landlords are suggesting an increase of 5.8% over the "current" rent price and ~15% over the "effective rental rate" (because I got a free month ...
11
votes
2answers
12k views

How to lower my rent when it is listed as less than what I am paying

I live in a large apartment complex that opened last year. I just moved in mid-July 2013 signing a 12-month lease. As of today, the apartment complex is about 30% occupied. There are many units ...
11
votes
4answers
5k views

Should I sell my apartment for 112% of buying cost or rent it out for 8% annually?

I currently own the following apartment: Cost when I bought it: 40K Mortgage left: 30K Annual Interest: 2% (fixed) Current estimated value: 45K (I believe I can sell it ...
11
votes
4answers
5k views

What can cause rent prices to fall?

In the 2007 Global Finanical Crisis many places like the US, Ireland and Europe, experienced a popping of their housing bubble and as a result, house prices dropped quite a lot. However, as most ...
11
votes
1answer
161 views

Can I take a deduction for expenses associated with an investment property I didn't buy?

I own a couple of rental homes that are very cash flow positive, so I was looking to buy another investment property. I found a duplex and put a contract on it, but based on the inspector's report I ...
11
votes
3answers
503 views

Will it be financially advantageous to rent out my condo on AirBnb?

I'm considering renting out my furnished 2BR/2BA condo as a daily rental. It is close to hospitals and is in Little Rock, Arkansas. I don't expect to make enough money to pay all the expenses ...
10
votes
4answers
854 views

What to ask a tenant on a rental application to determine if their income is stable?

I have a residential rental unit standing empty now; the last tenant – the first I'd signed myself since buying the place – turned out bad. Thankfully, not in the tear-the-place-up sense, ...
10
votes
4answers
890 views

Are REIT worth it and is it a good option to generate passive income for a while?

I was talking to a friend of my who is into investing. I told him my plan is to buy a house and rent it out for passive income and have a property management company handle it. My friend then told ...
10
votes
2answers
663 views

Short-sell, or try to rent out?

I'm currently considering taking a job in another state, and I currently own a home that's up-side down in it's mortgage. I'm trying to figure out what I would do with my home in the event that I move....
9
votes
5answers
2k views

Can one insure a home's AC unit?

My mother-in-law would like to insure her single family home AC unit while my wife and I are informally renting a room with her. Is this possible? Although the unit is 10 years old and runs fine, she ...
9
votes
5answers
20k views

Landlords: what's the maximum amount of time to allow a guest of tenant to stay in a rental?

As the title says, but with these details: I have a rental unit; this situation has come up with a potential tenant. This tenant has an adult daughter, who, the tenant volunteered, has an unstable ...
9
votes
4answers
3k views

Will we have trouble getting a mortgage for our second home if we keep our first to rent out?

My wife and I are currently saving for a home. We currently own a small condo, which we would like to keep as a rental unit once we purchase the second home. Currently our home costs are under 12% ...
8
votes
3answers
461 views

Should I dip into an emergency fund to cover expenses for a rental property or only use it to make emergency repairs, improvements, etc.?

My wife and I are looking to purchase a home in the near future. With this in mind I am curious about how we should now look at our emergency fund situation. The general guideline you will see is ...
8
votes
4answers
947 views

Difference between a mortgage and buy-to-let in UK

In terms of rights, whats the difference between getting a regular mortgage and a buy-to-let mortgage for a property in the UK? For example, if I wanted to invest in a property, and got a regular ...
8
votes
3answers
484 views

Unusual real estate market with seemingly huge rental returns

Experts, we've lived all over the world for a year or two here and there. Presently I live in a central US urban region which leans to government-technology. Housing is tremendously cheaper here than ...
8
votes
3answers
11k views

Should I deduct or capitalize the cost to replace a water heater in my rental property? (details Below)

Recently had a water heater die in my rental property and it had to be replaced with a new one. Here are the specifics: Old water heater that was in the unit when I bought it. The property was ...
8
votes
1answer
397 views

What is a rule of thumb for accruing debt on a rental property?

My sister and I were fortunate enough to inherit 2 properties from my father, one a suite of apartments and cottages worth about ~$3M and also his home. We currently have about $200K in mortgage ...
8
votes
1answer
2k views

How is rental income taxed?

I own two properties which I rent out. I am also paying mortgages on each of these properties (I'm not sure if this matters). How is the rental income taxed? Do I have any options regarding how this ...
8
votes
1answer
402 views

Is my financial plan for buying a house logically sound

All money is in NZD, all calculations done Weekly. Linked house is just example. House in North Shore, Auckland, New Zealand. $600K 30 year Mortgage with ASB, 430K loaned at 5.75% variable, (170K down)...
8
votes
2answers
386 views

Wait for the perfect tenant or lower the price?

I bought a two-family investment property. Each apartment has four large bedrooms and contains more than 2000 square feet. That makes it about twice as large (in terms of number of bedrooms as well as ...
7
votes
6answers
660 views

Is it a good idea to buy a house with a low ARM monthly payment, then rent it out?

I'm looking around for houses in my college town to rent to others, and I've found a decent 4-bedroom house with an interest-only 5 year ARM monthly payment (of $1700). Assuming I have enough to ...
7
votes
4answers
359 views

I'm under contract for a house, but I'm moving away suddenly. Still purchase as an investment?

I'm under contract for my first house. But I just got an outstanding job offer across the country that is almost double what I currently make. I will be moving. Purchase price for the house is 290k, ...
7
votes
2answers
309 views

Estate agent wants to charge a large amount to change the contract

I live with two other people in a house share in the UK. One is moving out, and the estate agent who handles the contract wants to charge us £300 for the pleasure of changing a name. We think this is ...
7
votes
1answer
22k views

Can I locate the name of an account holder by the account number and sort code? (U.K.)

I received an invoice from a landlord about a cleaning bill. I heavily dispute this (is seriously out of whack: charging 7 hours work for a 15 minute job). She's being all weird and cagey about things ...
7
votes
2answers
135 views

Can I have a dual-purposed limited company

I am an IT Consultant and have a limited company which I use to invoice my clients a daily rate for my consulting work. Can I use this same limited company to buy property and then offset the gains ...
6
votes
5answers
1k views

Merits of buying apartment houses and renting them

Here is my situation: I am not a U.S. citizen but I am studying here under F-1 visa. My plan is to buy 3-4 apartment houses and rent them. I am not planning to apply for a mortgage and the payment ...