Last year, my wife and I joined the league of accidental landlords. We were upside down in our home and couldn't sell it without taking a big loss. So after relocating for work, we decided to rent our house out. I thought it would be a simple endeavor to charge enough rent in order to cover our mortgage payment each month. But that was hardly the case when the rubber met the road. There were several important factors I neglected to take into consideration that hampered my return. I was struggling just to break even. With a mortgage … [Read more...] about The Trials, Tribulations, and Struggles of a First-Time Landlord
If you’ve recently become a landlord or are considering purchasing a second home for renting purposes, you’ve likely been introduced to a large bevy of responsibilities and duties you never expected you’d have. You can also find many mistakes landlords make. While renting out your property can be an extremely lucrative business venture, many enter the realm of rentals without proper knowledge or education on the subject and find it’s not as easy as expected. We’ve laid out the top mistakes landlords make when they run into, and the … [Read more...] about The Top 7 Mistakes New Landlords Make
This is the next installment in the Reader’s Questions Series, which highlights questions emailed to me by you, the readers of Money Q&A. Be sure to find out at the end of this article how you can receive a free copy of Dave Ramsey’s book, The Total Money Makeover if I feature your money question on a blog post. If you’re not familiar with Dave Ramsey’s book, you should run right out and get it. It’s one of the top ten best personal finance books you should read. Today’s question comes from Jeff who asks about renting … [Read more...] about Reader Question – Can I Rent Out Property After Hiring A Property Manager?
Whether you have recently left home or full time education or your circumstances have changed, taking responsibility for paying your rent on your own can be a daunting prospect. Probably your most important outgoing will be your rent cheque, be that owed to a property management company, a private individual, local authority or a relative. Paying your rent and in line with your contractual obligation takes some organization. For even more practical and clear advice on subjects ranging from universal credit to where to get help if you fall … [Read more...] about Coming To Grips With Paying Your Rent On Time
I have a confession to make: I lose money on my rental property every month. But I'm OK with that. I've got a long-term plan. Or I'm still delusional and hoping for a turnaround in the housing market. Either way, I stubbornly refuse to lose $30,000 in home equity by selling. I'd rather pay $300 a month out of my pocket in the hopes of hanging on to what little equity I have left. It's a Renters Market Out There Much like a home buyer, a renter has a lot of purchasing power. It's a pure case of supply and demand if there ever was one. There … [Read more...] about Why I Don’t Mind Losing Money As A Landlord
This is a guest post from Emily Guy Birken who writes at One Money Design. Now seems like the perfect time for investors to get started in the landlord business. The housing market is still recovering, which means that home prices are reasonable, interest rates are low, and rents tend to be relatively high. Under these circumstances, buying a rental property seems like a no-brainer. However, owning an investment rental property is not all about pushing wheelbarrows of passive income to the bank. Being a landlord comes with many risks-and just … [Read more...] about Are You Ready to Invest in a Rental Property?