The stress factor can also be huge; you're stressing about a bad tenant, the re-tenanting process, etc. You can have sleepless nights. Overall, everything taken into account you mentioned, the risk and efforts are too high to worth it to be a landlord nowadays. It is safer if one buys a 2bathroom place and has only a flatmate or flatmates. That way one never ever gives over the right to enter in his/her own house whenever he/she pleases.
Mental health is truly another factor when being a landlord. We didn't mention that as it's hard to quantify it but you are correct that it brings a lot of stress.
Where are you guys managing properties was it California? So first none of what you say are hidden costs unless this channel or episode is directed towards someone who has never owned or managed a property and even then if they have lived in a leased property and have internet they have heard of these so called hidden costs . I mean eviction is a hidden cost ? Property mgmt is a hidden cost ? Vacancy is a hidden cost ? Come on you guys seem to know some of the costs of managing properties and a more appropriate title would have been costs of owning investment property. Also any good excel spreadsheet calculator for investment property will list out average potential costs and one can supplement that with any other unique costs to that state or city and have a reasonable idea whether the property will cash flow with the assumed NOI and debt. If you screen well then the word you used your video “often times” tenant will hold back rent or not pay or need to be evicted that is just not true or your screening process is not that great if it’s been happening “often times” There are lot of videos best practices for screening tenant videos . Sure there are times when after screening good tenants lose job or whatever and have to leave because they cannot pay. But it generally is rare unless every one is getting laid off . Just like in Personal life you got to have several months of funds available to cover the costs . Tenants know or should be told once eviction goes on their record it’s not going to easy to lease again. In areas Our investors invest eviction takes 6 weeks to complete if done properly and lots of eviction companies that specialize in this and don’t need lawyers always . Anyway leasing residential properties has been around as a business for thousands of years and it works if done properly. Lot of factors go into it but if done well it’s a good supplement to regular w2 income and if you are consistent it can replace w2 . No one is doubting the costs you state just that these are not hidden and if screening done properly then it’s pretty rare .
Thanks for your comment. We are specifically talking about CA where it can take up to a year (or more in some cases) to evict a non-performing tenant. And we talk with a lot of home sellers who are planning to leave CA and they ask us for advice on converting their homes to rentals just in case they want to move back to CA. Many of them are unaware of the risks involved and that is why we highlighted them here in the way we did. You sound like you've got a lot of great experience and do a great job! Keep up the great work.
The stress factor can also be huge; you're stressing about a bad tenant, the re-tenanting process, etc. You can have sleepless nights. Overall, everything taken into account you mentioned, the risk and efforts are too high to worth it to be a landlord nowadays. It is safer if one buys a 2bathroom place and has only a flatmate or flatmates. That way one never ever gives over the right to enter in his/her own house whenever he/she pleases.
Mental health is truly another factor when being a landlord. We didn't mention that as it's hard to quantify it but you are correct that it brings a lot of stress.
Was a landlord. NEVER AGAIN !!!!!!!!!!! Screw renters. For the most part they suck.
We hear that a lot! Especially from landlords in CA
Where are you guys managing properties was it California?
So first none of what you say are hidden costs unless this channel or episode is directed towards someone who has never owned or managed a property and even then if they have lived in a leased property and have internet they have heard of these so called hidden costs . I mean eviction is a hidden cost ? Property mgmt is a hidden cost ? Vacancy is a hidden cost ? Come on you guys seem to know some of the costs of managing properties and a more appropriate title would have been costs of owning investment property. Also any good excel spreadsheet calculator for investment property will list out average potential costs and one can supplement that with any other unique costs to that state or city and have a reasonable idea whether the property will cash flow with the assumed NOI and debt. If you screen well then the word you used your video “often times” tenant will hold back rent or not pay or need to be evicted that is just not true or your screening process is not that great if it’s been happening “often times”
There are lot of videos best practices for screening tenant videos . Sure there are times when after screening good tenants lose job or whatever and have to leave because they cannot pay. But it generally is rare unless every one is getting laid off . Just like in
Personal life you got to have several months of funds available to cover the costs . Tenants know or should be told once eviction goes on their record it’s not going to easy to lease again. In areas
Our investors invest eviction takes 6 weeks to complete if done properly and lots of eviction companies that specialize in this and don’t need lawyers always .
Anyway leasing residential properties has been around as a business for thousands of years and it works if done properly. Lot of factors go into it but if done well it’s a good supplement to regular w2 income and if you are consistent it can replace w2 . No one is doubting the costs you state just that these are not hidden and if screening done properly then it’s pretty rare .
Thanks for your comment. We are specifically talking about CA where it can take up to a year (or more in some cases) to evict a non-performing tenant. And we talk with a lot of home sellers who are planning to leave CA and they ask us for advice on converting their homes to rentals just in case they want to move back to CA. Many of them are unaware of the risks involved and that is why we highlighted them here in the way we did. You sound like you've got a lot of great experience and do a great job! Keep up the great work.