The Rental Game
By Suebee
@Suebee (2013)
Canada
June 12, 2012 12:37pm CST
Do any of you have rental property that you use as a source of income? I've been toying with this idea for a while now. While it seems like a good way to make money, there are also risks involved, as with any investment. For example, people who don't pay their rent, damage to the property, maintenance and upkeep costs. Can any of you share your experiences of being a landlord with me?
3 people like this
6 responses
@PageTurner (2825)
• United States
12 Jun 12
Hello Suebee
I was a landlord for a decade. I bought houses, renovated them, and rented them to families who otherwise wouldn't have been able to afford excellent, affordable rentals in our area. My goals may have been different from many landlords; nevertheless, I do have experience in it.
It is very important to have an excellent lease that will, of course, protect your and your property, but also protects the rights of the renter.
Is there anything, specifically, that you would like to discuss?
@Suebee (2013)
• Canada
12 Jun 12
Well, it's just something that I have been thinking about for a little while now. When I turn 55 I will have access to some of my money from investments and I was just wondering if it would be worthwhile to invest it in some rental property. You know, income for the future. However, one drawback is that I am not experienced in doing renovations, in fact I wouldn't have a clue where to start, so wonder if it would be worthwhile for me or not. Say if a tenant damaged my place and I had to do costly repairs or something.
I think that most leases are standard, are they not? Did you take care of everything yourself or did you go with a property management company? Did you ever experience problems with tenants i.e. damages, not paying their rent, neighbours complaining about noise etc?
@PageTurner (2825)
• United States
13 Jun 12
I don't know what the housing market is like in your area. I know that here in the USA, now is a good time to buy.
You wouldn't necessarily have to buy properties that need extensive renovations. I just did this because it enabled me to buy properties for significantly less money than a 'perfect' property. Plus, I enjoyed working on them and I was also trying to instill in my children a good work ethic (they often accompanied me and helped out with safe projects they could handle.)
If you bought a property, the rent could pay the note and you could establish some handymen type people who could help with maintaining the property, or, as you mention, you could use a property management company and they would have these sorts of resources.
If you carry insurance on the place, that could be covered in any costly repairs a tenant (or nature) may cause.
I did everything myself, but again, my goals were not strictly to make money. I had wonderful tenants. We worked well together. I only had one bad experience with a tenant, and looking back on it, I really knew better than to rent to them to begin with, so I wasn't really surprised by how horrid they were.
@Suebee (2013)
• Canada
13 Jun 12
Did you personally interview your tenants? I think whether or not you have a good experience with rental properties depends largely on the tenants you get. Of course, buying the right property in the right area would have a lot to do with what type of tenants you get eh?
True I could get a place that is in fairly good condition but would have to hope that I had tenants that kept it that way.
@KrauseHome (36445)
• United States
16 Jun 12
Well, eventually my husband and I would Love to be able to buy property and use it for Rentals. We do rent a room in our home, and have found some interesting challenges and learned a few things, and know it would even be harder with a house. But I do know the Best thing if you ever get presented with having this chance is do Credit and background checks, insist on Deposits, etc. Renting can have a lot of setbacks but can be worth it as well.
@sid556 (30953)
• United States
14 Jun 12
I have never been a landlord nor would I want to be. I have a very good friend who is a landlord to several properties. I feel so bad for him. He works hard to maintain his properties and he has people who come in and trash the places, don't pay rent and cause problems for other tenents. He is nice and always has charged more than reasonable rents for his properties. Some of his rentals are way below "market value" and yet h is right there and doing work all the time. I saw an apartment that he completly went through and put in new carpeting, painted and fixed all up. He rented it out and within a month, he's getting notices that the poice have been out there on domestic violence and disturbing peasce charges.
@Suebee (2013)
• Canada
14 Jun 12
A great deal depends on whether or not you get good tenants, and that sometimes I fear is up to pure luck. While some people appear that they will be good, quiet tenants who always pay their rent on time and don't damage the place, sometimes it turns out that they are just the opposite.
@purplealabaster (22085)
• United States
13 Jun 12
The first thing that you should do is to make sure that you have enough savings to cover the mortgage payments on the rental property for at least six months, but I would say that a year is better. That way, if you do not get tenants right away or there are things that need to be fixed (there are always things that break and need to be fixed), you will have the funds to cover it, especially if you are not handy yourself and need to hire a professional.
In addition, do not make the mistake of confusing a good person with a good tenant. A person can be a real jerk, but if he or she does not cause any problems, pays the rent on time and does not break a bunch of things, then he or she is a good tenant. On the other hand, one of the nicest people I have met and a very good person was a terrible tenant. He had a good job and was honest and hardworking, but his wife left him with the kids, and he had trouble paying his bills. He was always honest and would give us something each week to try not to get too far behind with the rent, but still, when you have a mortgage payment to make, that is not the best situation.
@sender621 (14889)
• United States
13 Jun 12
I don't have any rental properties of my own but I do have some friends and family members who do. they buy a lot of properties than need work and rent them out and do make a nice profit in the process. it is not easy work but it can be rewarding if you put the effort and time into it.
@KCLGphilsBSA (372)
• Philippines
13 Jun 12
I am not a landlord, but i have a friend who offers her properties for leases. You must remember that you can outdid the risks when you will use it within cities. However, tax will be higher. Relate your decision with what the most of the residents or target customers willing to take. Another one, make your real property cool to live in. :) OFFER products hehe
