Part of my savings plan for this year had been counting on the income from my condo being rented out to a family. I was going to be able to save approximately $1,000 per month. In theory.
I am sad now to say that this savings plan can pretty much be ignored since I had the bad luck of getting bad tenants, who apparently had no intention of paying me from the moment that they moved in. I did do the background check, pay history, and they came with glowing references from the previous landlord with whom they were with for nine years without an incident.
How did it get so bad?
Showing posts with label Rental Income. Show all posts
Showing posts with label Rental Income. Show all posts
Wednesday, May 22, 2013
Friday, November 30, 2012
Money Spent on Condo Repairs
Money Spent on Condo Repairs:
1) Minor repairs, equipment, and installations such as electrical switch covers, (3) carbon monoxide and smoke detectors, a stabilizer (added security) for one of the closets, nails, screws, and repair of one recessed lighting fixture in the guest bathroom
$179 (Ace Hardware)
2) Garbage Disposal Unit from Amazon
$52 (I used a $5 amazon gift card)
3) Installation of Garbage Disposal Unit
$125 (I should have agreed with my boyfriend to have him install it rather than have a handyman do this. It would have been free installation for something simple as this. Next time, next time!)
4) The hot water in the condo stopped working in the master bathroom
$300 (Current Quote. Exact Cost To Be Determined by Tomorrow)
The handyman who installed the disposal unit was supposed to fix this since he was a plumber as well. But, he had no clue. So, I am hiring a more professional plumbing company to go there tomorrow. Expensive. Since I'm going to have to take care of work issues this weekend and the boyfriend will be studying for his finals, I'm going to have to swallow this cost.
Total Cost of Condo Repairs this month = $656.00
All this for the condo whose current incoming rent is only partially subsidizing for the condo's mortgage/property tax/insurance/HOA costs.
Will there ever be a day without problems and setbacks?? It seems like whatever little money I make, there's always something to take it all back.
Monday, November 26, 2012
Renting Out My Condominium To Lower Monthly Fixed Expenses
Since I bought my condominium at the height of Home Sales, I have a pretty big home loan that I am making painful monthly payments on.
In June 2012, I refinanced to a lower mortgage rate at 4.375%, which helped quite alot on monthly payments. Except, the refinancing costs were rolled back into my loan, which pretty much brought the loan amount nearly back up to the original loan amount. A few thousands short of being back at the original loan amount.
I was not able to get the lowest interest rate or get no cost refinancing loans because my property is severely underwater.
So, I made the decision to rent out my condo and move back into a home that my parents own at the low cost of paying the house utilities only. My parents are planning to sell this house in a couple of years and have stopped renting the house out to a tenant. I am insanely lucky and grateful to have them as parents and for allowing me to move into this house until they sell the place.
That was back in July 2012, when I began the moving in process. I was not able to get a renter until now (November, 2012). The utilities here at the house are double the utilities over where my Condo is. So, for the last few months, I was suffering in terms of having little or no money left over after my paycheck since I was still maintaining the Condo.
Finally, I found a family who will pay me $1,400 per month for the condo with $1,400 security deposit!! They have moved in this week.
The total monthly cost of the Condo is still going to be in the RED, unfortunately, at about $500.00. My mortgage payment, HOA dues, homeowner's insurance, and property taxes equal to $1,900. The rental income is $1,400. That is $500.00 still in the red.
About three days into their move, the tenants reported that my garbage disposal unit has stopped working and that there is no hot water in one of the bathrooms. I ordered a new garbage disposal from amazon and shipped it directly to the tenants already.
I'll know what the cost of repairing these issues is come Wednesday night. Here is to hoping that the hot water issue is not a major issue, involving any damage to the drywall!!
In June 2012, I refinanced to a lower mortgage rate at 4.375%, which helped quite alot on monthly payments. Except, the refinancing costs were rolled back into my loan, which pretty much brought the loan amount nearly back up to the original loan amount. A few thousands short of being back at the original loan amount.
I was not able to get the lowest interest rate or get no cost refinancing loans because my property is severely underwater.
So, I made the decision to rent out my condo and move back into a home that my parents own at the low cost of paying the house utilities only. My parents are planning to sell this house in a couple of years and have stopped renting the house out to a tenant. I am insanely lucky and grateful to have them as parents and for allowing me to move into this house until they sell the place.
That was back in July 2012, when I began the moving in process. I was not able to get a renter until now (November, 2012). The utilities here at the house are double the utilities over where my Condo is. So, for the last few months, I was suffering in terms of having little or no money left over after my paycheck since I was still maintaining the Condo.
Finally, I found a family who will pay me $1,400 per month for the condo with $1,400 security deposit!! They have moved in this week.
The total monthly cost of the Condo is still going to be in the RED, unfortunately, at about $500.00. My mortgage payment, HOA dues, homeowner's insurance, and property taxes equal to $1,900. The rental income is $1,400. That is $500.00 still in the red.
About three days into their move, the tenants reported that my garbage disposal unit has stopped working and that there is no hot water in one of the bathrooms. I ordered a new garbage disposal from amazon and shipped it directly to the tenants already.
I'll know what the cost of repairing these issues is come Wednesday night. Here is to hoping that the hot water issue is not a major issue, involving any damage to the drywall!!
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