Discussions

I find it amazing how tenants are always the experts on how rentals work and all the costs associated with running rental properties.  
 
You know the mortgage payments are around half interest right? If your mortgage is $800, that means maybe $350 of it will go against the principal (the amount you owe the bank), and the other $450 is the interest (the amount you pay the bank to borrow the money). On top of that there are property taxes, insurance, income tax, repair and maintenance, utilities in some cases.  
 
Landlords aren’t paying off their houses in 5 years. Try 20-25 years, and that’s with the required minimum of 20% down payment.

I have been a property investor for decades and owned rental properties in several cities over the years. From condos to houses.  
 
I have a condo rental in Brandon. Let’s just say this loosely:  
 
I paid $150,ooo cash, no mortgage, so I don’t have to calculate mortgage or interest into my ledger. I am charging $1,ooo/month. and some people have told me I overcharge.  
 
After all my expenses (expenses any owner would have, rental or not) my “profit” each month is less than $200. So at that, from rent alone (not including increase in value of the unit over time which is where the real money is, not from the rent - this profit costs the renters nothing) it would take over 60 years to get a “free apartment” off the backs of the renters. So, if I had a mortgage the rent would be higher because I would have to calculate that payment into the costs.  
 
Whomever thinks they can make it in 4 years PLEASE tell me how... I will make us both billionaires.  
(Yes, property developers make their money faster than just rental investors. It is their source of income so that makes senses. If they couldn’t make money there would be NO construction ever.)  
 
Renters need to realize that if it wasn’t for people like me (or companies) there wouldn’t be any places for them to rent. Someone has to own the properties and we have every right to make money from them (I am not subsidized or a housing charity) but the rent is not pure profit.  
 
I agree people think they are “entitled” to too much. You cannot expect to rent something for less than what it costs the owner to own it each month. I agree everyone wants “Top shelf” but doesn’t want to pay for it.  
I will put in the best finishes, appliances, windows, & even alter floor plans but then I would have to charge rent accordingly. Property owners shouldn’t have to lose money on their investments but renters want everything for nothing. Not going to happen.  
 
NO! Someone cannot get my unit and pay less than it costs me to run it. Sorry.  
 
Edited by OutinBrandon, 2020-02-08 08:54:16

I was wrong  
 
Edited by Heynow, 2020-02-08 09:17:16

You must be making money otherwise why would you do it? Nothing wrong with it but be honest.

it is a really good question why we still do it. No where near as profitable as it was 15 years ago. Tenants have become very abusive of other peoples property in the last 5 years. If I wasn't building equity in the property I would invest in pretty much anything else. I would definitely not buy with out a mortgage, leveraging assets is financially a better outcome. In the early 80's I worked for $5.25 an hour and paid $475.00 and utilities a month for rent in a 1 bedroom basement apartment. Minimum wage was $3.25. That was a starting point in my life, not career choice to stay at that level.

to take the approach that starting out in life and renting an apartment is an exercise in reality - how to budget and live within your means (something they don't teach you in school) . Sometimes it can be difficult - but a lot of individuals on fixed incomes do it very successfully each and every month. Instead of complaining about rent - you need to sit down and make a list of your fixed expenses (rent, utilities, car payment, insurance etc. - then figure out whats left of your income for food, medicial emergencies, etc.) If you have a cell phone, high speed internet and cable TV - then you shouldn't be complaining about rent as all of these are unnecessary luxury items. A lot of seniors on fixed incomes have a land line, dial up internet and TV through rabbit ears (getting only 2-3 channels) and they are quite happy and even have some funds left over at the end of each month. When I owned rental properties back in the 60's and 70's - Tennants had very few rights - you had a 5 day grace period beyond the due date to pay your rent - If the rent wasn't paid during the grace period you would come home to find your belongings in the ditch in front of your unit and the locks changed. The landlord had a key to the unit and could inspect same at any given time whether you were home or not. There was none of this waiting 3-6 months for an order of possession to get a non-paying tenant evicted - or not staying on top of the damage being done to the unit by a tennanr who sticks the landlord with 10's of thousands of dollars worth of damage. You never took any of that into consideration when you claimed rental property was a money maker. I'm glad I don't rent any more as its not worth the headache.