My rental property portfolio enjoyed the holiday season. This month was light when it came to repairs & maintenance requests. Progress was also made in the on-going eviction Saga at rental property #4. In general, 2018 ended well for my rental property portfolio.
The Landlord Report – December of 2018
Hello there – welcome to another “Landlord Report”. This monthly report shares 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’. I may include repairs, how I avoid vacancies, how I screen new tenants or any other items that pop up. This report will share how I made or lost. I will also share what kind of time commitment was required for being a landlord. I want to show the world being a landlord is a wonderful thing.
Throughout this process, I will 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 profitable month. This month was not quite as lucrative as last month (November 2018) but still one of my best months when considering the cash flow. I made over $3,800 after my expenses and mortgages were paid. My rental property portfolio produced income while still incurring expenses (more on that in a bit) and struggling through an eviction where a tenant is not paying rent (more on that too).
I cannot wait for the eviction saga to be over; rental property #4 is about to turn the corner. Rental property #1 and rental property #2 enjoyed a perfect month. Rental property #3 and Rental property #4 had a few minor expenses and items worth discussing. Being a landlord is not all sunshine and cash flow. But! I still love being a landlord. Below you will find a detailed account of what happened at each property this month.
Rental Property #1
Things were absolutely boring and easy with rental property #1. I never heard a peep out of the tenants and there were no repair or maintenance items this month. The tenants paid their rent in full and on time. I collected the $2,325 on my way home from work. This costs me about 15 minutes of my time.
Rental Property #1 Summary
In summary, rental property #1 – earned $356.76* earned and I spent about 15 minutes managing the property. My mortgage debt dropped by $727.98 from my monthly mortgage payments. When considering the principal reduction, I came out ahead by $1,084.74.
*Remember – this is an accidental rental that I plan to live in during FIRE.
Rental Property #2
Rental property #2 had a perfect month. The tenants paid their rent of $4,050 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?
Rental Property #2 Summary
In summary, rental property #2 – earned $1,414.89**. I spent about 1-hour managing rental property #2 this month. My mortgage debt decreased $753.06. When factoring paying down my debt, rental property #2 made me $2,167.95. Not bad for about a couple of hours of work. Oh, and I got a free place to live.
**I also live in the house and get paid to live here. Pretty sweet right? House Hacking is awesome.
Rental Property #3
Things at rental property #3 were relatively quiet this month. There were no repairs for the property. Utilities were the only expense. I imagine the gas bill will spike for the next three months now that its winter. Looking forward to when I have new tenants so that I no longer have to pay for gas.
Utilities for the property:
Gas Bill: $182.29
Water Bill: $210.34
Electric for unit 2: $60.23
In summary, rental property #3 – made $1,363.06 and I spent about 30 minutes of my time managing this property. Rental Property #3’s mortgage debt also decreased $423.22. When factoring in paying down my debt I made $1,786.28.
Rental Property #4
The eviction saga continued in December. As expected, the tenant in unit #3 did not pay his rent by the 5th day of the month. This was a violation of our agreement from mediation and caused me to file for a Writ of Restitution the following morning. Our court date was set 10 days later.
Flash forward to our court date – I accidentally went to the wrong courtroom. Doh! However, thankfully this did not hinder my ability to take legal action or keep things moving forward.
After finding the correct courtroom, I discovered the tenant did not show for our court date. The judge listened to me stumble through all the legal jargon, took pity on me, and granted the Writ of Restitution. This means that I officially have the courts blessing to evict the tenant. This also means that the U.S. Marshalls will be assisting in the matter.
I was required to return to the courthouse two days later to file two forms. This was a quick trip that took about 15 minutes. However, I would need to return the next day because the court records were updated in the system yet. Returning the following day, the system still was not up to date.
After sitting around for about three hours, the clerk called my name. I approached the gentleman to find all my paperwork was in order, I was granted the Writ of Restitution, and that I should expect a call from the U.S. Marshalls in early January.
At last, the eviction battle was over. The end is near and the punk who willingly does not pay his bills will be removed from my property. I small victory but a modest financial loss. I look forward to providing an update (hopefully) in January about the tenant being removed from the property. The eviction saga is not quite over yet – but we are getting there.
Despite the pain and headaches caused by tenant #3, rental property #4 is still throwing off a bit of cash flow. The property produced cash flow even after a repair and the standard utilities. The plumbing stack for the building backed up and required a 50-foot snake. It appears that one of the tenants put some sort of cloth, napkin or paper towel down the drain.
Otherwise, there is nothing to report except for this month’s utilities.
Minor plumbing repair:
Total cost: $350.00
Total time: 1 hour
Water Bill: $173.60
Common area electricity: $43.59
In summary, rental property #4 – made $670.02 and I spent about 15 hours of my time managing this property. The property will be more profitable once it’s fully leased. Rental Property #4’s mortgage debt also decreased $444.70. When factoring in paying down my debt I made $1,114.72.
In summary, I spent about 16 hours and 45 minutes of my time maintaining my rental property portfolio. Most of the time commitment was from the ongoing legal battle with the tenant at rental property #4.
In December, my rental properties made $3,804.73. I made $227.15/hour being a landlord. Being a landlord is provides one of the best dollars per hour sources of income. I expect things get even better once I resolve the non-payment of rent issue.
My mortgage debt decreased $2,348.96 in November. Gotta love having tenants pay off over $2k of my debt every month. Factoring in repayment of debt and cash flow, my rental properties made $6,153.69. So, I made$367.38/hour.
Being a landlord and owning a rental property portfolio is a great way to build wealth. What is your excuse for not owning rental property?