Home > Tag Archives: property management

Tag Archives: property management

My Rental Property Strategy and Property Management

Rental Property

This is a post from Eric at No Nonsense Landlord. Enjoy! There are many so called RE investors that pretend to cash flow, and they are not calculating any of the soft expenses.  Management, Vacancy and Maintenance are the big three.  Maintenance being a thing you can put off, and see profit, but it is in actuality deferred maintenance.   I allocate 10% of rents towards maintenance in my budgets, 5% for vacancy, and 7% for management.   And I expect ~15% ROI if I make the purchase. Most of my time in regards to the rentals is spent on turning apartments.  Bringing them back to as close to 100% as possible.  Sometimes it takes only a couple of hours, sometimes a bit more.  I turn many in a day, and often have zero vacancy between tenants.  But it is a bit hectic with a full time job.  If it is much more than a few hours, I have a damage deposit.  I can paint with the best of them, and can fix most anything any handyman can. When a renter is in, I would guess it averages well less than one hour per month, per tenant.  A property manager who charges ...

Read More »

The First Year of Owning a Rental Property

It’s been one year since our first residential rental property opened for business. I say that because it’s very important to treat investment property like a business.  After being landlords for a year, I though I would share my thoughts on the whole process of rental property ownership.  Property Management We chose to use a property management company, and up to this point, they have done a wonderful job. The particular company we use has an agreement in each lease to go in every quarter for seasonal updates to the property. While, this is true, it’s actually a great way to make sure the tenants aren’t running a meth lab in our house. We also get a report after each inspection with repairs that need to be done right away or in the future. Our tenants were late with the rent only one time. They paid about a week late, along with the $50 late fee.  I’m honestly very glad I haven’t had to go chasing anyone for late rent because I’d probably be a sucker for a sob story. For now, we will keep property management so that we don’t have to worry about things like this.  Unexpected Costs ...

Read More »

Things I Refuse To Save Money On: Wasteful or Smart?

Since turning over a new financial leaf a couple of years ago, I am always looking for ways to save or earn money. However, there are some things that I just can’t bring myself to do even if it could put some more coin in my wallet. I’d like your opinion on whether I’m wasteful or smart. Let me know if I’m crazy to refuse to save money in these ways. . Waiting in Line For Gas In our town, the Kroger chain grocery store is always the cheapest place to buy gas. I shop there, so I usually have a discount on top of the pump price because of my customer points. That being said, there is always a line at the pump if you try to buy gas at the end of the work day. I try to go in the morning, but sometimes I can’t make it. I refuse to park my car behind someone pumping gas. I always choose the person has to go write a check at the window. Instead, I pay 3-5 cents more per gallon down the street, where there is never a line. Approximate cost per year: $10  Wasteful or Smart?  Property ...

Read More »

Five Businesses for “Retirement”

Like many people who start a financial blog, I have a desire to achieve financial independence or be able to “retire.”Some people argue that you can’t be retired if you still work. I don’t think it matters what you call it. I hope to get out of the day to day grind that we get stuck in to pay the bills. Within 10-12 years, my husband and I hope to be free of that, but I am not one to sit around the house watching the Game Show Network. I have a list of possible business opportunities that seem promising. These may never pan out, but it’s fun to dream. 1) Property Management-We already have a residential rental and a commercial rental. We hope to add 2-3 more over the next several years. By that time, we should be more experienced as landlords, and might even take on management of other properties. If we are “retired,” we should have plenty of time to take calls and fix leaky toilets in the middle of the night. However, I watched a show called World’s Worst Tenants this weekend. After seeing them wrestle an alligator out of a tenants bath tub, that could make ...

Read More »

Rental Property Series: Let’s Drink to Having Tenants

It has been a little while since our last rental property update. In case you’re new to this site, we purchased our first rental property at the end of August this year. My husband and I became slaves for a month to get it renovated and ready for rental.  You can read about it here if you missed it. Our goal was to have it ready for rent by October 1. We decided to use a property management company because we are just too dang nice and might let in a criminal if they look sweet and have some money. We were hoping to get $750 per month in rent. With our mortgage, insurance, taxes and property management fees paid, we should net around $340 per month from this property. Sweet deal, right? Well, we did have the property ready by October 1. I assumed there would be a line of people waiting to rent the place. We worked so hard, and I got a pretty shower curtain and mirror for the bathroom.  Reality is that it takes a while to find the right renter. One thing I like about property management is that they have no emotional attachment whatsoever. Sob stories don’t ...

Read More »