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Do you have a rental property?
Posted on 5/6/15 at 10:08 am
Posted on 5/6/15 at 10:08 am
Wife and I are buying another house and keeping our existing one to rent. Figured what the monthly mortgage is, plus termite service, water and sewer line warranties, and home warranty. We are only able to get rough estimates on how much we'll owe on tax as rental income is taxable income (my understanding).
It's been a while since I rented. Seems like it was always one month rent as a deposit (refundable) and a pet deposit (non-refundable). What is a normal pet deposit?
Who here owns a rental property? What else should I be thinking about? Any advice? Thanks!
It's been a while since I rented. Seems like it was always one month rent as a deposit (refundable) and a pet deposit (non-refundable). What is a normal pet deposit?
Who here owns a rental property? What else should I be thinking about? Any advice? Thanks!
10
Posted on 5/6/15 at 10:20 am to atlau
quote:
What is a normal pet deposit?
$5,000
Posted on 5/6/15 at 10:22 am to atlau
we ran a rental for about 4 years in the past, but not as a money maker.
i got a job that involved me moving in October 2008. Market crashed in November and i couldn't sell it for anything other than a loss. I had The first 6 months I had 4 offers of 50-60k for a house that we finally sold for $100k in 2013
the prices you gave were about what we did.
so we rented it out and barely made any profit. we charged one month refundable deposit (that they ate up a good bit of) and said it was one month non-refundable deposit for a pet. We got a home warranty just for plumbing/AC issues.
At the end of the day, we didn't really make any money (literally was probably a loss,) but we didn't have to pay 2 mortgages, so we never had anything on taxes that affected us.
if i remember correctly, the income is taxed differently than wages, but it might be different in your state.
i got a job that involved me moving in October 2008. Market crashed in November and i couldn't sell it for anything other than a loss. I had The first 6 months I had 4 offers of 50-60k for a house that we finally sold for $100k in 2013
the prices you gave were about what we did.
so we rented it out and barely made any profit. we charged one month refundable deposit (that they ate up a good bit of) and said it was one month non-refundable deposit for a pet. We got a home warranty just for plumbing/AC issues.
At the end of the day, we didn't really make any money (literally was probably a loss,) but we didn't have to pay 2 mortgages, so we never had anything on taxes that affected us.
if i remember correctly, the income is taxed differently than wages, but it might be different in your state.
Posted on 5/6/15 at 10:23 am to Stonehog
quote:
$5,000
that's a little high. it's usually 500-1000 in most apartments i've ever seen.
Posted on 5/6/15 at 10:32 am to 3nOut
quote:
that's a little high. it's usually 500-1000 in most apartments i've ever seen.
Plus any HOA or HOA-type fees. Just look at everything you paid for and include that.
Posted on 5/6/15 at 10:35 am to atlau
Where's your rental house? We're in the market possibly 
Our current pet deposit was a $350 non-refundable deposit plus an additional $20 per month in rent
Our current pet deposit was a $350 non-refundable deposit plus an additional $20 per month in rent
Posted on 5/6/15 at 11:28 am to The Nino
Just bought and rented my first one and under contract to buy number two. Total costs for commercial loan, tax, insurance is $670/month and we are renting for $1,200. Won't make us rich but we are going to pay off a 15 year loan in about 8 years and after that we will be doing ok. Goal is to have around 10 or so in the next few years. We have the luxury of having an Air Force base with a mile or so of where we are purchasing, so tenants are fairly easy to come across.
ETA: $350 non-refundable pet deposit is what we do. First tenant did not have pets but you know that you will have to at bare minimum steam clean the carpets or in some cases replace. $350 plus one months rent is about right if you have to do some serious work (painting, replacing cheap flooring, etc.).
ETA: $350 non-refundable pet deposit is what we do. First tenant did not have pets but you know that you will have to at bare minimum steam clean the carpets or in some cases replace. $350 plus one months rent is about right if you have to do some serious work (painting, replacing cheap flooring, etc.).
This post was edited on 5/6/15 at 11:31 am
Posted on 5/6/15 at 11:59 am to stevengtiger
We're not renting it as much as a source of income as we just want to keep it over time because they neighborhood is going up in value.
Are you in Atlanta?
quote:
The Nino
Are you in Atlanta?
Posted on 5/6/15 at 12:20 pm to atlau
Only assholes charge pet deposits.
Posted on 5/6/15 at 12:22 pm to BallstotheWesleyWall
quote:
Only assholes charge pet deposits.
False. Why should the owner foot the bill for cleaning up after someone elses pet?
Posted on 5/6/15 at 12:38 pm to BallstotheWesleyWall
quote:
Only assholes charge pet deposits.
Are you serious? Only smart owners charge pet deposits.
Posted on 5/6/15 at 1:00 pm to BallstotheWesleyWall
quote:
Only assholes charge pet deposits.
only dumbasses wouldn't charge it
Posted on 5/6/15 at 1:27 pm to CatFan81
Clean up what?
Posted on 5/6/15 at 1:29 pm to BallstotheWesleyWall
The floor.
Posted on 5/6/15 at 1:38 pm to atlau
quote:Yep. You're in Decatur right? I think we had a similar convo a month or 2 ago
Are you in Atlanta?
Posted on 5/6/15 at 1:42 pm to atlau
I own quite a bit - I'm actually dealing with some of it today.
I'll be back later to offer more pointers but the number one thing you must do is start a separate LLC .... "atlau Property Management," or something like that.
That will take care of your taxable income issues immediately.
Make sure you have an ironclad renters agreement that you can use to really hold their feet to the fire once they tear the place up ... because they will.
Washer and dryers are extra ... and charge extra enough to replace them every couple of years.
Security deposit is "month and a half" plus extra for pets that would balance to two months.
Where your live, where your property exists, is key to how to approach what you are about to do. Owning residential rental property these days is not for the faint of heart. I've got both, commercial and residential and commercial is far less of a headache while residential is more profitable in quantity provided you stick to a certain market and .... well, it is very complicated.
I'm super busy right now but I will come back to this.
I'll be back later to offer more pointers but the number one thing you must do is start a separate LLC .... "atlau Property Management," or something like that.
That will take care of your taxable income issues immediately.
Make sure you have an ironclad renters agreement that you can use to really hold their feet to the fire once they tear the place up ... because they will.
Washer and dryers are extra ... and charge extra enough to replace them every couple of years.
Security deposit is "month and a half" plus extra for pets that would balance to two months.
Where your live, where your property exists, is key to how to approach what you are about to do. Owning residential rental property these days is not for the faint of heart. I've got both, commercial and residential and commercial is far less of a headache while residential is more profitable in quantity provided you stick to a certain market and .... well, it is very complicated.
I'm super busy right now but I will come back to this.
Posted on 5/6/15 at 2:08 pm to atlau
I own several. I recommend a property management service. We have several here in Bham that do a good job. They screen tenants, collect rent, repair things, evicts, etc, etc, etc. They typically charge 10% of the monthly to do this which is inexpensive IMO.
You aren't going to conquer the world with rental houses. Too many expenses and too many shitty renters. I plan on selling ours over the summer while the real estate prices are up.
You aren't going to conquer the world with rental houses. Too many expenses and too many shitty renters. I plan on selling ours over the summer while the real estate prices are up.
Posted on 5/6/15 at 3:06 pm to the808bass
Unless they're very young puppies, elderly with bladder problems, or just untrained, they're not going to be shitting and pissing all over the floor.
Posted on 5/6/15 at 3:15 pm to scrooster
quote:
I own quite a bit - I'm actually dealing with some of it today. I'll be back later to offer more pointers but the number one thing you must do is start a separate LLC .... "atlau Property Management," or something like that. That will take care of your taxable income issues immediately. Make sure you have an ironclad renters agreement that you can use to really hold their feet to the fire once they tear the place up ... because they will. Washer and dryers are extra ... and charge extra enough to replace them every couple of years. Security deposit is "month and a half" plus extra for pets that would balance to two months. Where your live, where your property exists, is key to how to approach what you are about to do. Owning residential rental property these days is not for the faint of heart. I've got both, commercial and residential and commercial is far less of a headache while residential is more profitable in quantity provided you stick to a certain market and .... well, it is very complicated. I'm super busy right now but I will come back to this.
Please tell us more. I sold my only rent house. I did well over the years by the final renter did everything but burn it to the ground. Horrible ending.
Posted on 5/6/15 at 3:33 pm to BallstotheWesleyWall
quote:
Unless they're very young puppies, elderly with bladder problems, or just untrained, they're not going to be shitting and pissing all over the floor.
Let me guess, you have no experience in the landlord department?
ETA: it would appear Scrooster knows his shite in this area
This post was edited on 5/6/15 at 3:35 pm
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