September was an above average month for my rental property portfolio. There were a couple of small items that I had to address but no major time commitments. I considered it a quiet month.
The Landlord Report – September 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, September was a good and profitable month. Rental property #1 had a perfect month. There were a couple of minor items at the other rental properties that I will dive into greater detail. No crazy fire drills or budget-busting repairs. 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 over Labor Day weekend while running errands 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 $721.19 from my monthly mortgage payments. When considering the principal reduction, I came out ahead by $1,077.95.
*Remember – this is an accidental rental that I plan to live in during FIRE.
Rental Property #2
Rental property #2 had a minor pest problem in September. One of the tenants (roommates) sent me a text one night saying she saw a rat. Sadly, DC has a HUGE rat population. The problem is so bad that the Washington Post has even written about the rat population several times. The rat population is out of control. It’s so bad that rats can now be seen during the day (they are nocturnal creatures).
Anyway, I lobbed a call into my pest guy and he jumped right on the problem. The great news is that there were no points of entry surrounding the house. My pest guy thinks the critter ran into the house when someone left the door open. Still, kind of gross. Anyway, a 15-minute phone call and a check later resolved the problem. He was able to
Pest control maintenance:
Total cost: $275.00
Total time: 15 minutes
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 $1,139.89**. I spent about 30 minutes managing rental property #2 this month.
My mortgage debt decreased $745.58. When factoring paying down my debt, rental property #2 made me $1,885.47. Not bad for about a couple of minutes 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. However, there was a minor item I needed to address. DC has experienced record rainfall this year. In fact, we broker the annual rainfall record back in August. But! Mother Nature continues to be relentless in September.
The crazy rainfall has taken a toll on DC real estate in general. Many homeowners and renters have experienced issues with their roofs and windows leaking this year. Well, mother nature finally caught up with rental property #3. The upstairs tenant had modest water damage surrounding the bedroom window.
I called my go-to repairman/contractor to address this issue. He was able to seal the leak the following day. However, we have not patched the walls yet as we want to stress test the repair first. The sealing has held up well with additional storms and my contractor will patch the wall and bill me in October.
Total cost: $TBD
Total time: 30 minutes
Otherwise, it was a quiet month at rental property #3. Utilities for the property:
Gas Bill: $42.72
Water Bill: $212.80
Electric for unit 2: $134.78
In summary, rental property #3 – earned $1,425.62 and I spent about 30 minutes of my time managing this property.
Rental Property #3’s mortgage debt also decreased $431.88. When factoring in paying down my debt I made $1,844.38.
Rental Property #4
Rental Property #4… Well, I can say this property is still not stabilized. I had a tenant lined up to move in on September 1st. Unfortunately for me, she backed out a mere three days before she was supposed to move in… Not cool. Thankfully, I should have someone lined up for Late October or November first. I cannot wait to have all three units rented.
Otherwise, there is nothing to report except for this month’s utilities.
Water Bill: $148.73
Electric for units while vacant and common area: $58.60 (I will only pay for the common area once all the units are leased)
In summary, rental property #4 – made $431.88 and I spent about 2 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 $440.14. When factoring in paying down my debt I made $872.02.
In summary, I spent about 3 hours and 15 minutes of my time maintaining my rental property portfolio.
In September, my rental properties made $3,354.15. I made $1,032.05/hour being a landlord. This month’s time commitment was very average. I also expect the expenses at rental property #4 will drop once everything is settled and rent to go up.
My mortgage debt decreased $2,325.67 in August. 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 $5,679.82. So, I made$1,774.63/hour. Being a landlord and owning a rental property portfolio is a great way to build wealth. What is your excuse for not owning a rental property?