152

They are likely approaching a known busy new-tenant season. It's not uncommon to see rent and housing prices increase as the summer approaches as there are many families who move during that time. School's out and maybe the family wants the children to move schools or don't want to interrupt the school year. People who found places to live right after ...


112

I am sorry to say, you are asking the wrong question. If I own a rental that I bought with cash, I have zero mortgage. The guy I sell it to uses a hard money lender (charging a high rate) and finances 100%. All of this means nothing to the prospective tenant. In general, one would look at the rent to buy ratio in the area, and decide whether homes are ...


99

I think this might be an instance of "survivor bias" in that you only tend to hear from the people who were successful at it and made a lot of money off of it. Conversely you don't hear as much from the people who lost their shirt trying to flip a house or those who couldn't secure tenants at a good price. If you're interested in the idea of passive real-...


79

I think your best course of action in this scenario is to act as though you don't have a credit on your account. Keep making your payments as you normally would. I would notify the management that you are doing this, as you are assuming that eventually someone will come asking for that money to be applied to a different apartment number. You may want to ...


71

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 ...


70

The rent will be determined by: the rent being charged on similar houses near you. Your costs have no bearing, at all, on the price you will get.


65

Your biggest problem is that this may be seen as a conflict of interest - in other words there is potential for you to make decisions about company money that benefit you, rather than the company. Fortunately it's not a very big problem, handled rightly. In order to prevent any possibility that this might be a problem, I recommend that you: Go and tell ...


64

What is the truth about this? Pretty much no truth. At 48 years old, I received an offer for a job where I was paid far more than any other employment I had previously. I chose it over two other competing job offers that were offered at a very similar time. While I was laid off from that job, rather abruptly, I had a new job within a short time at age ...


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.


54

Several other good answers that get into the details, but I think there are a few obvious things that need to be said here: Real estate isn't a risk-free golden ticket - investing in real estate involves a lot of risk. It's easy to fail at it, and then you have nothing to fall back on. Having a career with a skilled job isn't as dismal as you've made it out ...


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 ...


51

Yes, it is safe, we have been doing it for years. We prefer our tenants to make their rent payments in this manner. In fact, we prefer that they set up an automatic payment for the rent, either through their online banking or through their bank directly. Apart from getting your rent on time, this method also has the added benefit of both parties having ...


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 ...


42

I'd consider this offer. Keep in mind, any time you write a check, there's the information he's asking for. If it makes you feel comfortable, use the small balance account, or set up a 4th one you'll use for these incoming deposits only.


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 ...


40

The sales pitch: A few decades ago, I had a friend that was starting out in real estate investing. He explained his reasoning like this: Buy a starter home. Get a decent house/condo with the best rates because it is an owner occupied purchase. Live there for 5 years. Buy another house, get some renters lined up for the first place. Renters cover the ...


38

If this is a scam, here's what I'd expect to have happen: Someone will contact you and say "Oh my goodness! I accidentally applied three months of rent to your apartment instead of mine by physical check! This is terrible! I need the money back, or I can't make rent this month, but the complex won't return it to me! Could you write me a personal check for ...


36

In the United States the security deposit is to cover damages you make to the apartment or common areas. It is not to allow you to skip out of the contract. Frequently you are responsible for finding a person to take over the lease, but they still must be approved by the owner or their representative. If you do terminate the lease early you are generally ...


35

Several, actually: Maintenance costs. As landlord, you are liable for maintaining the basic systems of the dwelling - structure, electrical, plumbing, HVAC. On top of that, you typically also have to maintain anything that comes with the space, so if you're including appliances like a W/D or fridge, if they crap out you could spend a months' rent or more ...


35

You stated several things in your question that you are afraid of - you are afraid of investing in something you can't "see", afraid that you're buying the rental too high, afraid that you'll be stuck in your apartment. It sounds like investing in real estate is not going to give you peace. I have no clue about the investment opportunities in the ...


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, ...


33

Does it make sense for me to keep the house Are you willing to be a landlord for $91 a month? What happens if your house goes unrented for 3 months? 6 months? How will you pay its mortgage? In my opinion, you don't have enough buffer to make this worth the risk. If you could afford for it to go unrented for 6 months then it might be a good investment in ...


31

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 ...


30

I am a real estate agent. The issue is not yours, it's between the two agents. The agent with her hand out might have an agreement with your possible tenant, but she did not arrange the deal. Say you listed your apartment on your own. You have no agreement at all. As an agent, I can send a client your way, but I shouldn't expect compensation. Finally, if ...


30

It's safe. You give people those numbers every time you write a check. If a check is forged, and doesn't have your signature on it, the bank has to return the money to you; they get it back from the other bank, who takes whatever action it deems necessary against the forger. They've been doing this for a few hundred years, remember.


30

Obviously you have done well financially in order to be able to purchase a condo for cash, presumably, without risk of your other obligations. To put things in perspective, we are probably talking about less than $5,000 in tax savings. If she is on the title then she is a co-owner. Are you okay with that? You would essentially be giving this child a 50%...


29

Yes you can sell the property while it is being rented. The new owner has to honor the current lease agreements. Expect to provide copies of the leases to the potential buyer so they can review the contracts before committing to the purchase. The current owner isn't obligated to inform the renters that the property is for sale, though being able to show ...


28

Because the returns are not good. One of the big drivers in Australia is "negative gearing": if your investment loses money you can offset losses against your tax on other income. Institutional investors and corporations are in the business of making money: not losing it. Housing market investors are betting that these year to year revenue losses will ...


27

When you took the apartment you agreed to pay the rent you are paying now, and they agreed to rent you an apartment. If apartments were being listed for more than you were currently paying, and your landlord asked you to pay more rent than you agreed because 'your apartment is worth more now', I'm betting you wouldn't agree to it. That's the way renting ...


27

There are those who are knowledgable in real estate who offer rules of thumb: Don't pay more that 50X the rent for the house. Here, $972 x 50 is $48600. Assume half the rent goes to expenses. So from $972, you net $486, and after that mortgage, you have $111 in profit. Zillow usually assumes 20% down, here $20K. So you are seeing a 6.67% return on your 20K. ...


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