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) it took. I want to show the world being a landlord is a wonderful thing.
I also manage ~50 properties for other people, but this report will not share information on my clients or their properties.
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. Please feel free to contact me with any questions – happy to provide insight.
The Landlord Report – April 2017
This past month was boring, ABSOLUTELY boring. Any you know what? That is awesome! Being a landlord comes with the occasional headache, a repair request from a tenant or the occasional ‘oops’. But most months are usually stress free. A typical month owning a rental property (or multiple) usually consists of just collecting the rent check.
Well, this month was simple. All I had to do was collect the rent for rental property #1 and rental property #2.
In March (yes, I know this report is for April), I closed on my new rental property and I spent minimal time this month getting the place ready for renters. I promise, there will be a post providing an update on this property in the near future. There were unexpected items prolonging the update and ‘completion of this rental property’.
But I digress – Let’s dive into this month on a property by property basis.
My property portfolio had a great and what I like to call a ‘perfect month’.
But… Guy – what is the perfect month?
Great question! A perfect month as a landlord and owner of rental property is when you only need to collect the rent. No repairs, no nagging tenants or headaches. Does life get any better?
Rental Property #1
The table below outlines all the revenues and expenses for property #1. This was a very quiet month and I spent less than an hour managing this property.
The tenants paid their rent of $2,300 (a $25 increase from last month) in full and on time. I stopped by on my way home from work to collect to the rent which took about 20 minutes of my time. While I was at the house, I spent a few minutes to catch up with my tenants. They expressed that they were content with the house and had no items that needed to be addressed.
[pro tip: Keep eyes or pay someone (property manager) to keep eyes on your rental property. These are living and breathing investments unlike an index fund. As such, a bit of attention is required. You will likely notice something is broken before a tenant will.
Take a gutter for example. A tenant will likely only notify you once something is a problem for them. Being a present and proactive landlord can save time and money down the road. It may also help preserve your rental property]
Remember how I said it was a perfect month? Well yea…. No management items to speak of. #Winning
Lucky for me, there were no repairs for my rental property. Gotta love a hassle free paycheck.
Hint: Next month I will have a repair or two to talk about. I just received a call from one of my tenants this morning.
Rental Property #1 Summary
In summary, rental property #1 – total income was $276.74 and I spent 20 minutes of my time on this rental property for April 2017. Not too shabby; thats $830/hour. Does that beat your day job?
*My total monthly mortgage payment is ~$2,023.00 (dropping by $100/month next now that my escrow account is funded). I am paying down additional principal every month. This is the only property I pay more than the minimum. Sometime over the next year or two, I will start aggressively paying this home off as I plan to live here when I start FIRE.
Rental Property #2
The table below outlines all the revenues and expenses for property #2. This was a very quiet month and I spent less than an 10 minutes managing this property.
The tenants/roommates paid their rent of $4,000 in full and on time. Since the tenants of rental property #2 live with me, collecting rent is easy. Everyone leaves their rent on one of the counters and I mobile deposit their checks. No trip to the bank required. The money literally comes to me…. Cannot beat that.
Like rental property #1, not a damn thing to report. Gotta love being a landlord and the passive income that a rental property can provide.
Guess what? I had no repair items this month. This is ACTUALLY very common for a landlord. Remember, this was a perfect month for me as a landlord.
Rental Property #2 Summary
In summary, rental property #2 – total income was $1,591.43**. I spent maybe 10 minutes of my time depositing the checks with my smart phone. As a result, I earned $1,591.43 for 10 MINUTES OF EFFORT!!! On an hourly basis, this was $9,566/hour. April 2017 was a great month for rental property #2. Does that beat your day job?
**I also live in the house and get paid to live here. Pretty sweet right? House Hacking is awesome.
Rental Property #3
Rental Property #3 is STILL under construction. I will have an update about the renovation process SOON.
To sum up this Landlord Report, I spent about 30 minutes of my time on existing rental properties. Rental property #3 is being renovated and that did eat up some of my free time (not included in calculations). However, I am comfortable with the upfront time and costs since the rental property will provide great passive income in the future.
This month, my rental property provided me $1,868.17 with ONLY 30 minutes of effort ($3,736.34 on an hourly basis). My renters also paid down $1,298.45 of my debt. That brings my monthly gain to $3,166.62 and it only cost me 30 minutes of my time. Not bad for a half hour, right? What is your excuse for not being a landlord and not owning rental property?