Landlord Monthly report
October Landlord report
As of October 2018, I am separating income received from Stocks versus passive income received from rental property. This is a way to simplify my tracking of dividend received compare to my goal to reach FIRE. Although both will contribute to reaching that goal. I will also gear this post toward anything relate to being a landlord and how much time it takes and expenses and my overall experience dealing with tenants.
So without further ado... let us look at last month report.
Rental property #1 is a four-plex; 3 of the units is a two (2) bedroom apartment and the fourth (4) unit is a three (3) bedroom townhouse. We lived here for 1 year before purchasing Property #2
Property # 2, is our main residence and it also has a 1 bedroom unit we could rent. The unit was purchase mainly for my in-laws to move in. Currently they live in a 3 bedroom rental. My father-in-law is over 60 now, My goal is to help them be stable as they reach their retirement. Currently they are not planning to move any time soon. We may decide to rent this unit until they are ready to move in at some point, however for now it remains unoccupied.
Units 2, 3, and 4 paid in time and I collected $3700.00 in rental income. Unit 1 is another story I had a court date in early October the Judge side it with the tenant and gave the tenant until the end of the month to move out. This would be my first eviction process. This has been in the works since July. However, I was trying to help the tenant who is a single mother, so the process was delayed due to my own wiliness to help a single mother. But, as a business this is not practical or recommended at all, as it tends to backfire like it did to me.
Will be in court in November again for the eviction process. The court did make her pay her October rent of $1000.00. SO total income for October was $4700.00.
Let us look at the expenses: in all i took 6 trips to the property. Twice to reset a power trip in unit one (1). once to replaced a battery on the smoke detector. Once to due maintenance in heat radiator before the winter starts in Massachusetts. The other two times as a regular visit to conduct inspection and clean up, maintenance on the property. Each visit I usually spent about 15 minutes to 30 minutes there. I also spend 3 hour in court and 1 hour 30 minutes going to and from the sheriff office for the eviction process notifications.
Mortgage for the property is was paid on time a total of $2172.00, utilities for the month was also paid on time a total $255.00; Also the lawn expenses came in at $110.00 for the month. The tenants paid both in form of monthly rent payment total expenses was $2537.00, which left a positive cash flow of $2163.00.
When you add the mortgage paid down for the month, this added a total of $2763.00 in passive income. The tenants are paying down my mortgage in this property and also all the expenses associated with it.
I spent a total of 6 hour managing this property and made $460.50, an hour maintaining and owing this property. Surely there is no reason why you should not own a rental property. It is a great way of adding to your passive income.
Property #2 is not rented, so we incur all the expenses with owing a home here, However the income from Property #1 (one) helps pay for most of the expenses here.
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