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In the current news climate we see that some figures and events tend to dominate the front-pages heavily. Still, there a
Oh in italy as a private individual owning rental property it's beyond absurd. You don't even deduct property taxes (yes really). You don't deduct realtor fees (you do for capital gain not for rental income). These days at least you pay a flat tax on rent but if you choose that (which is low compared to income taxes, 21%), then you cannot increase the rent by inflation."leases"
Yeah. In the US it helps a lot knowing real estate is going to predictably go up, and there is a payday at the end of the rainbow when you sell. Even if you get a bad tenant. And even in California rental laws aren’t as bad as what you are describing.
Our rental basically the price of the house doubled in a 2 year period during Covid, and we sold at a high point. We didn’t time the market perfectly but we sold it for more than it is worth now, so did ok. And while we owned it we definitely benefited more from tax write offs than rental income itself.
The dirty little secret most renters won't like to hear is that the landlord typically loses money every year while providing you a relatively cheap place to live.
"Landleech" is a fun term used by people without a clue, but if you can't afford the rent, you definitely can't afford the mortgage. Rent will never go down, either, so something else has gotta give if people truly can't afford rents.
When Luciom's graph occurred in the United States, 2008 happened. When you're leveraged to the tits and the collateral doesn't go up in value, you get royally ****ed when your interest rates adjust.
Every professional landlord I know is just happily breaking even every year with the plan of selling their portfolio at retirement to live on the equity. It's an extremely shitty way to make a living in the meantime, though. 0/10 do not recommend to anyone, but somebody's gotta do it.
The dirty little secret most renters won't like to hear is that the landlord typically loses money every year while providing you a relatively cheap place to live."Landleech" is a fun term used by people without a clue, but if you can't afford the rent, you definitely can't afford the mortgage. Rent will never go down, either, so something else has gotta give if people truly c
People certainly have a skewed view of what it’s like to be a landlord but I’d be cautious going too far in the other direction. Some people have higher risk tolerance than you do and might be willing to defer gratification in the hopes of a big payoff at the end.
I assume that any professional landlord you know does have a stream of income or at least a reasonably large savings that they can pull from while they wait to cash out on their investment.
The people with higher risk tolerance get rekt if housing prices stall, much less actually go down.
Their mortgages are rarely longer than 5 year notes amortized as if they were 20s, and are typically interest-only. I've got about 30 properties due for a refi in February, and those notes are going from 2.5% to 6+%. That's going to be extremely painful on cashflow, on top of the fact that Milwaukee jacked up property taxes this year as much as 35%. We already have some of the highest property tax rates in the country.
A vast majority of landlords in America are not professionals, though. They have a separate job and maybe an extra property or two. The ones I'm talking about have 60+ units and pay themselves a percentage of rent in exchange for dealing with all the bullshit that comes along with the territory. 10% management fee is pretty typical.
We've been stockpiling cash waiting for the inevitable downturn that wipes those risk-takers out, but it hasn't come. Number only go up.
The people with higher risk tolerance get rekt if housing prices stall, much less actually go down.Their mortgages are rarely longer than 5 year notes amortized as if they were 20s, and are typically interest-only. I've got about 30 properties due for a refi in February, and those notes are going from 2.5% to 6+%. That's going to be extremely painful on cashflow, on top of th
Well, didn't you guys want trump to come in and break everything to pieces? Did you think everything was just going to go nice and smooth? Don't get all worked up about it now. This is what you wanted 😀
The people with higher risk tolerance get rekt if housing prices stall, much less actually go down.Their mortgages are rarely longer than 5 year notes amortized as if they were 20s, and are typically interest-only. I've got about 30 properties due for a refi in February, and those notes are going from 2.5% to 6+%. That's going to be extremely painful on cashflow, on top of th
Getting paid 10% of the fees of 60+ units is not bad if you’re the one that owns the units. And seems like your risk tolerance has to be pretty high if you deal with all that crap and have to wait to get the tens of millions in assets that come with that. Also seems like you would have to have a lot of pre-existing capital to even be in that position 😀
Sure I assume that some people might get screwed if the housing market goes down, and I’m sure it would be nice to be at astronomically low interest rates. But if no one can go broke what exactly is the risk you’re taking?
And I do think that buying a second house purely for the purpose of charging rent is a huge risk that people take, so I wouldn’t say that only the most aggressive land speculators have a high risk tolerance. Sinking massive amounts of cash or credit into an illiquid asset will do that. Most people would never dream of taking a loan to invest on the stock market, hoping to beat the APR, but wouldn’t blink an eye at doing the same for a rental property. And you don’t even have to worry about potential tens of thousands of dollars emergencies when investing in the stock market, and can generally exit at any time to pay off the entire balance of your loan.
I’m not saying you should do that, I’m just saying that the mindset of the real estate market in America makes people a little bit naive about what they’re getting into.
The people with higher risk tolerance get rekt if housing prices stall, much less actually go down.Their mortgages are rarely longer than 5 year notes amortized as if they were 20s, and are typically interest-only. I've got about 30 properties due for a refi in February, and those notes are going from 2.5% to 6+%. That's going to be extremely painful on cashflow, on top of th
Why did you get short term mortgages when rates were historically low?
employees in manufacturing as a % of total employees, by country in time
Most Americans, maybe even most of them here, aren't that interested in the rest of the world unless it directly impacts them.
Long term mortgages aren't available to corporate landlords.
Mom and pop can skirt the rules a little if they try, but there are still hard limits that no professional landlord can circumvent.
you aren't supposed to "feel sorry for landlords", but if being a landbord is uncomfortable, rent goes UP not down.
Espeically after accounting for the quality of the premises (which are WORSE when professional landlords are pushed out of the market by whatever reason).
If you want decent units to be easily available for renting at reasonable price, you should support easy construction and an easy life for landlords.
Or you can always bet on depopulation which worked in Italy (outside a few desirable areas) and is what could happen if actual mass deportation of illegals happened in the USA.
Espeically after accounting for the quality of the premises (which are WORSE when professional landlords are pushed out of the market by whatever reason).
Economies of scale.
We pimp our maintenance staff out to other smaller landlords and let's just say, I have seen some **** in those photos that come back from the field.
If you live in a house owned by a small mom and pop operation, you're at the mercy of their skills and/or finances. If you live in one of my properties, you've got a professional maintenance team and 1000 other people contributing rent to the shared fund. We spent $40k building 6 new decks this summer that could've probably been made technically safe with a $100 tub of screws. We don't agree with that lifestyle, though, so we do it right.
I'm not looking for a pat on the back, but it's just one of those realities of property management that people don't consider when they line up with their torches and pitchforks to get all salty at the big corporate landlords. The quality ceiling might not be as high as a fresh-to-market rental from someone who just moved out of a property as their personal residence, but the quality floor is definitely higher over time.
Ceiling fans are one such victim of corporate landlording, at least for us. Ceiling fans and garbage disposals are the two things tenants like breaking the most out of anything in a home. We stopped fixing/replacing ceiling fans a little bit before COVID, and now simply swap them out with dome fixtures whenever they break. This is objectively a reduction in QOL for anyone who loses their fan. Maybe this wasn't entirely your fault, but other people ruined it for you, I'm sorry. I recently had an argument with a tenant who was pissed off at getting a $500 maintenance bill for clogging the plumbing because the maintenance team pulled what appeared to be half of an all-you-can-eat salad bar out of the pipes leading into the main stack for his unit and the one above him. He's sending me photos from the manufacturer website that picture entire chicken legs and full cheeseburgers as if it's normal human behavior to shove your entire uneaten dinner down the sink. My guy, you do not have a commercial kitchen unit under your sink, and all those restaurants know to throw 99% of debris in the TRASH and not down the sink. Your lease very clearly outlines how to use your disposal. I'm not marking this down.
He lit us up with a 1 star google review. Oh well.
Sure, but the reverse applies as well. You’ve had shitty renters, but renters have also had shitty landlords. To wit,
Economies of scale.We pimp our maintenance staff out to other smaller landlords and let's just say, I have seen some **** in those photos that come back from the field.If you live in a house owned by a small mom and pop operation, you're at the mercy of their skills and/or finances. If you live in one of my properties, you've got a professional maintenance team and 1000 other
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Always pisses me off to see how people Can be so dumb with simple thing , but then again they vote too ….
Got some idiots at work keep throwing entire hand paper in the toilet boil when finishing drying his hand instead put it in the bin 0o .
Of course sometimes it block the freakn toilet and they redo it …
Tenants are heavily favored in any sort of mediation, so people with a lot of experience tend to just avoid any paths that might lead to a dispute. It's all about mitigating risk.
A few people ruining it for the rest of us is a pretty common theme throughout society.
Tenants are heavily favored in any sort of mediation, so people with a lot of experience tend to just avoid any paths that might lead to a dispute. It's all about mitigating risk.
A few people ruining it for the rest of us is a pretty common theme throughout society.
I had a buddy that was in the landlord biz and the professional tenants can move in and stay for a year before you get rid of them in a conservative province I can only imagine a liberal one
Landlords are only interested in talking about the problematic tenants they sometimes have and not interested in talking about the millions of dollars in assets that they get in combination with a steady stream of income.
I had a buddy that was in the landlord biz and the professional tenants can move in and stay for a year before you get rid of them in a conservative province I can only imagine a liberal one
How unimaginably awful.
I'll go ahead and award InsoO another * he's earned it 😀
I assume you've already been forfeiting this commie holiday to help save us billions? And hope you're not waiting around for everyone to team up to do the right thing.
Yes, we were working yesterday and today. The last/first day of the month are not optional workdays in property management. All hands on deck for turnovers. You have 24 hours to get things ready for the new occupants.
I didn't personally have to put pants on today, but I'm expected to be available for support if needed.
Anyone who has had a good landlord and a bad landlord knows that landlords can definitely add value. But if they want more sympathy from people they should stop underplaying how immensely profitable it is.
Having landlords doesn't have any value whatsoever. They are value-sucking leeches forever complaining about how terrible it is they can't throw people out onto the street when they want.
