December was an uneventful month as a landlord. This was much welcomed after the past two months were busier than normal. The extra down time was also appreciated. The renovation at rental property #4 is almost done. I look forward to finding renters later in January.
December was also a decent month for my rental property portfolio. Two of the properties had perfect months; a month with no repairs or maintenance required. One of the of the properties has a few minor items that were easily addressed with a phone call or two.
The Landlord Report- December of 2017
Hello there – welcome to another “Landlord Report”. This monthly report will share my experiences as a landlord. The report will show EVERYTHING related to my rental properties and life as a landlord….
I will discuss the rents that I collected, mortgage payments, and other ‘landlord items’. Other topics may include repairs, finding new tenants and any other items that might randomly pop up. The report will also share how much money I made and the amount of time (hours) I spent. I want to show the world being a landlord is a wonderful thing.
Throughout this process I aim to be as transparent as possible. Being a landlord and owning rental property is a wonderful way to earn (mostly) passive income and allow you to buy back your time faster.
I hope you follow along with this monthly series. The Landlord Report can serve as a guide to owning rental property. Please feel free to contact me with any questions – happy to provide insight.
The table below outlines all my income and expenses for the past month:
As you can see, December was a good month for my rental property portfolio.
Rental property #1 and #2 both had perfect months. A perfect month means that I collected 100% of the rent and had no expenses other than the mortgage.
Rental property #3 had a few minor repairs that ate up some of the cash flow. Overall, it was a decent month and no complaints.
Being a landlord is not all sunshine and cash flow. But! I still love being a landlord.
Below you will find a detailed account about what happened at each property this month.
Rental Property #1
Rental Property #1 Summary
Rental property #1 returned to full occupancy as expected. There were no repairs or maintenance items this month.
The tenants also paid their rent on time. I stopped by the rental property to collect the rent after getting my hair cut which took 10 minutes. This was a perfect month for rental property #1.
Rental Property #1 Summary
In summary, rental property #1 – earned $381.76* and I spent about 10 managing the property.
My mortgage debt dropped by $750.96 from my monthly mortgage payments. When considering principal reduction, I made $1,132.72.
*Remember – this is an accidental rental that I plan to live in during FIRE.
Rental Property #2
The tenants paid their rent of $4,000 in full and on time. Rent collection required me walking downstairs to get my morning cup of coffee. Does life get any easier than that?
Another perfect month for rental property #2.
Rental Property #2 Summary
In summary, rental property #2 – earned $1,591.43**. I spent about 10 minutes managing rental property #2 this month.
My mortgage debt decreased $723.58. When factoring paying down my debt, rental property #2 made me $2,315.01.
Not bad for 10 minutes of worth of work. This is what a normal month typically looks like as a landlord. The dollar per hour cannot be beat.
**I also live in the house and get paid to live here. Pretty sweet right? House Hacking is awesome.
Rental Property #3
There are may unknowns when you buy a rental property. Expect some hiccups during the first year. Over time you learn a property’s quirks. You may find seasonal issues with a building (i.e. problems that only occur in the winter or spring but not summer or fall).
I have noticed repairs and maintenance may be higher during the first year. This levels off eventually. Investing upfront to fix and prevent future problems is well worth the money.
Rental Property #3 had two maintenance items this month. The plumbing for the building backed up. The was also a small pest problem. Both were easily fixed.
First – the plumbing for the building backed up. The tenants would run the water without any problems for a short period of time. Water would not drain if it was run for long periods of time.
This was a simple problem to fix. I called my handyman/plumber and asked him to snake the drain. He has a very long snake that was able to work through whatever was clogging the pipes.
Total cost: $150.00
Total time: 10 minutes
The downstairs (ground level) tenant saw a mouse. She also noticed mouse droppings. This problem was easily treated.
I called my pest guy and he stopped by the following day. He found two openings where the mice were entering the house. He sealed both holes. His fee also covers the follow up visit in 10-14 days.
Total cost: $109.82
Total time: 10 minutes
In summary, rental property #3 – made $1,309.57 and I spent about 20 minutes of my time managing this property.
Rental Property #3’s mortgage debt also decreased $406.52. When factoring paying down my debt, I made $1716.09.
In summary, I spent less than 1 hour of my time maintaining my rental property portfolio.
Rental property #1 required minimal time to manage. I only needed to collect the rent. The property provided positive cash flow
Rental property #2 was very manageable. I just had to collect the rent.
Rental property #3 took some effort scheduling repairs. The property still provided positive cash flow even after two minor repairs.
Overall, this was an good month my rental portfolio. Being a landlord still feels worth the time and energy.
In December, my rental properties provided me with a positive cash flow of $3,282.76.
My mortgage debt decreased $1,881.06 last month which further increased my net worth.
Factoring in repayment of debt and cash flow, my rental properties earned $5,163.82. Being a landlord and owning a rental property portfolio is great.