72

why does it make sense financially to buy property and become a landlord? Because then your investment generates cash instead of just sitting idle. All taxes, fees and repairs aside it would take almost 21 years before I start making profits. No - your profit will be the rents that you collect (minus expenses). You still have an asset that is worth ...


63

As a landlord, we would always prefer for you to call me whenever there is an issue. It is possible they might tell you to handle yourself, but they need to be in on the decision. Botched repairs can cause more headache than the original problem. As to the specifics of who pays for repairs. It is usually spelled out in the lease.


53

I agree with your instinct, and I think in your shoes I'd make it an "either / or". In other words, say to the letting agent "I am happy to rent the house to your family member, but on the condition that I switch the management of the property to another agent (at another management company) to avoid the conflict of interest that would ...


52

I believe it's not only legal, but correct and required. A 1099 is how a business reports payments to others, and they're required by the IRS to send them for payments of $600 or more (for miscalleneous payments like this). The payment is an expense to the landlord and income to you, and the 1099 is how that's documented (although note that if they don't ...


48

Not a lawyer but this seems like a very bad plan. What you're hoping to do here looks very much like a classic bait-and-switch scam. Advertising a low price to attract customers and then declining to offer the goods at that price is generally not allowed and could cause you significant liability. You'd need to look at Philadelphia's landlord-tenant laws ...


44

No. The starting point is what other rentals are going for in the area. Supply and demand dictates a fair starting price. From there, you can adjust up/down for the fact that you know this person. (To be clear, this is the answer, i.e. the renter should neither know nor care what your costs are, only what similar properties rent for.) (Note, there are ...


40

I disagree with the other respondents. If your tenant is an individual, renting in their individual capacity, there is no reason they need your SSN. They will not be sending a 1099 to you. If your tenant is a business, then your property is not a residential property. It is at least a "corporate housing", and you would have noticed that the contract was ...


36

Small time landlord here. I would say don't count your chickens before they hatch. "expressing an interest" is not the same thing as putting down a security deposit and signing a lease. I've had many people "express interest" who then ghost me. Finding an apartment is a lot like dating. These potential tenants might also have expressed ...


36

The carpet seems suspect too unless you trashed it. The $177 feels illegal to me. I might go as far as leaning that way even if the rental agreement included the rule! (Just because something's in an agreement doesn't make it legally enforceable.) Had you taken it upon yourself to reduce your last month's rent by 3 days because you turned the keys in early, ...


34

The idea you present is not uncommon, many have tried it before. It would be a great step to find landlords in your area and talk to them about lessons learned. It might cost you a lunch or cup of coffee but it could be the best investment you make. rent it out for a small profit (hopefully make around 3 - 5k a year in profit) Given the median price of ...


34

This is typically spelled out in the lease. Our leases say that tenant must call us (the landlords) if something needs to be repaired. tenants are responsible for the costs associated with damage above and beyond normal wear-and-tear that is not covered by our insurance. repairs must be done by people we choose rather than people the tenant chooses, ...


32

The main work that a property management company does is finding you a tenant. After that, they may provide handyman services at a decent rate, but for the most part they'll just be making the same calls that you would make to a plumber/electrician,etc. on the occasions where something goes wrong. I'm a landlord and like to handle repairs myself, my sister ...


26

The value of getting into the landlord business -- or any other business -- depends on circumstances at the time. How much will it cost you to buy the property? How much can you reasonably expect to collect in rent? How easy or difficult is it to find a tenant? Etc. I owned a rental property for about ten years and I lost a bundle of money on it. Things ...


24

Traditionally in my leases I specify that it will be returned within 30 days of move-out via check (and therefore they must provide forwarding address). I send via certified mail so that receipt is confirmed. Safe and easy. Now, for tenants that pay with Zelle I will offer to return it via Zelle, but I don't have that written into the lease because it's ...


22

A lot of people do this. For example, in my area nice townhouses go for about $400K, so if you have $80,000 you can buy one and rent it. Here are the typical numbers: Monthly Payment 30-year loan at 4%: $2,027.73 (Includes Monthly Tax Paid: $416.67) Insurance: $80 per month Maintenance: $50 per month Rental Income: $2,500 per month So you would make $...


21

It is legal. They're probably going to give you a 1099-MISC, which is required of businesses for many cash payments over $600 in value to all sorts of counterparties. (Probably box 3 of 1099-MISC as is typical in "cash for keys" situations where one is paid to vacate early) A 1099-MISC is not necessarily pure income, but in this case, you do have money ...


21

Ask your tenant what he wants to get out of this arrangement - NOT the legalese - but: What end result the tenant wants in plain English (it sounds like free money). Why does the tenant think he should/must get it? - Note: answering my mum said it was due is not your problem. Then decide what you should do. Things not to do: Engage with his mother - you ...


18

I have been a landlord in Texas for just over 3 years now. I still feel like a novice, but I will give you the benefit of my experience. If you are relying on rental properties for current income versus a long term return you are going to have to do a good job at shopping for bargains to get monthly cash flow versus equity growth that is locked up in the ...


17

Withdraw it from the market. If anyone asks, apologize and say that you severely mis-priced it, and you can't afford to rent it out for the original price. Most of them will say "I'm not surprised". Then say "I'm taking it off the market so I don't bait-and-switch people". Don't tell them this, but part of the problem is with an ...


17

Check with the town/city/county/state regarding landlord-tenant help. They usually have a website or document that discusses what steps are supposed to happen, and when those steps must occur. Assuming the fee isn't justified, the jurisdiction they suggest you go to arbitration, or you might have to file a claim through small claims court. The limits and ...


16

What does he mean exactly? How the heck does it make sense for a landlord to "buy" a "lease" from his own tenant? It sounds like they're hoping you might pay them to vacate/end their lease. It could make sense if you were considering selling the property. It could also make sense if they were about to stop paying rent because they think they cannot be ...


16

The answer to the question how much you need to save is: It depends. You need to do an analysis of each property. Roof, appliances, heating/AC, water heater, sump pump, repaving of the driveway. Your list will be specific for each property. You need to estimate how often they need to be replaced, and how much useful lifetime they have left. You will also ...


15

It would appear that people have different experiences with the management companies, and that's to be expected. For what it's worth, in some areas of the world (Australia, probably others), it's basically expected that you run your rental property through a management agency, regardless of where you live. That's not to say that everyone does, but it's ...


12

This is a reasonable idea and many people have done it. But there are some risks that you need to mitigate. Overleverage. If mandatory payments are more than you can handle, you could lose your property. Think you get laid off during a recession when all your houses are empty. Managing property is a lot of work. A friend does this, but to keep 7 properties ...


12

Confer with the landlord I am surprised at the amount of work this contract wants done. I'd question if it's even legal given the high costs. I suspect it's only there to remind abusive tenants of responsibilities they already have in law for extraordinary abuse beyond ordinary wear-and-tear: they are already on the hook to repaint if they trash the paint ...


12

It is possible that the company they work for won't allow this. Taking money from the property owner to represent them, but then potentially helping the tenant could be against their employment contract. Their boss would not be happy about losing a customer because of this. Yes this is a conflict of interest. Assume the fee they collect is 1/2 of a months ...


11

with 150K € to invest to "become a landlord" you have several options: Pay for 100% of one property, and you then will make a significant percentage of the monthly rent as profit each month. That profit can be used to invest in other things, or to save to buy additional properties. At the end of the 21 years in your example, you can sell the flat for return ...


11

There's no set rule that I've found to be very agreeable. You can budget by taking cost over expected life of each expense if you like, but it takes a fair bit of work and has to be updated with some frequency. I've had appliances far outlive their expected life and others not make it half as long as expected, so while it might average out I found it not ...


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