Rentals...Worth the effort?

[Dale Mercer]

Ok ok I get it I'm not a tax expert. I rented it at a fair market price and should have ask for more. I did make a little money. The goverment made more and they did'nt have to get up in the middle of the night and fix a furnace. If you divid it out per year it's very little per year. Bottom line the house is gone. Case closed.

 

[teejk]

Ok ok I get it I'm not a tax expert. I rented it at a fair market price and should have ask for more. I did make a little money. The goverment made more and they did'nt have to get up in the middle of the night and fix a furnace. If you divid it out per year it's very little per year. Bottom line the house is gone. Case closed.

You rented at the going rates...all you can expect. At one time you could buy, rent then sell with appreciation. That "house for everybody" policy turned the entire housing market on its head...and probably explains why many electricians and plumbers and carpenters still don't have any work. Flood the market with houses that a lot of people can't afford, anybody with a hammer or a wrench made $$$...then reality set in...excess houses. Government intervention at its best.

 

[KretZ]

Never rent to friends or family.

Boom! Here is a truth to live by. While we were overseas we were renting to a young family whose parents were good friends with my wife's parents for 30+ years. The husband was almost like a cousin to my wife and her siblings growing up, they were that close. After almost two years of hounding these people month in month out to pay their rent, hearing every excuse in the book, they up and vanished like a fart in the wind one day and left us with an 800 dollar water bill. After deducting their deposit, we were only out 350 bucks. I told my wife it only cost us 350 bucks to never have to hear from them again. Kind of a steep price, but it all worked out in the end.

 

[Sprinklerman]

Well I had to file for an eviction today . A young woman with an infant and 4 year old . I got the tears , and a bunch of excuses . I dont want to evict her , but No Pay No Stay . I told her she has 5 days to come up with the rent and late fees and she will be fine . I also told her it isnt personal , its just business .

 

[LD1]

Renting to family is iffy. Can tear familys apart, or could be the best thing ever.

I rented to my young cousin. It was her first place. Paid the deposit and first months rent no problem....then started having issues coming up with money. I know the eviction process is not easy, so wanted to tread carefully. She had some unfortunate things happen.....car accident with 1k deductible, hacked bank account that took a month to get straightened out, etc. I just had a informal conversation with her. Said I didnt want to have to "evict" her. So simply asked if she thought things were ever gonna get better or if she felt she was just gonna keep getting further behind. She said she didnt see things getting better and said she though it would be best if she just moved back in with her parents and pay me off when she could.

Ok, no problem. I knew this was going to be the probably outcome from the beginning. But she was dying to move out. But I knew this was going to be a good learning experience for her about real life. And better prepare her for when she is ready to try it again.

This was last ~july she moved out. As of her tax return this year....I have been paid in full. Sure, it would have been nice to have a good on-time paying tennate in there, but it does somewhat feel good to try to help her out and give her a chance.

 

[ultrarunner]

I have one rented to my sister-in-law's brother...

It's been 10 years and OK

But, you are right... if things go South... the implications could be far reaching.

 

[ultrarunner]

Well I had to file for an eviction today . A young woman with an infant and 4 year old . I got the tears , and a bunch of excuses . I dont want to evict her , but No Pay No Stay . I told her she has 5 days to come up with the rent and late fees and she will be fine . I also told her it isnt personal , its just business .

Evictions around Christmas always make the news...

 

[teejk]

Evictions around Christmas always make the news...

But as he said, "nothing personal, just business". I agree with that 100% (if it was my mom I would probably "suck it up"). There are a ton of social programs out there now that would probably let her pay the rent but I'm guessing she had a smart phone and cable TV and a few tattoos. Ok...done with my "rant"...

 

[Dale Mercer]

A lady bought her daugther a small farm. The daugther was to pay her back but did never did. The lady wanted to sell the farm but the daughter would not not let anyone in to see it so she could not sell it. I bought the farm off the lady(on contract) sight un seen. Never set foot on the farm or in the house. I had no idea there the ground laid. The lady evicated her daughter. Been here 50 years and never been sorry. People were more tusting back then At lest I was

 

[teejk]

A lady bought her daugther a small farm. The daugther was to pay her back but did never did. The lady wanted to sell the farm but the daughter would not not let anyone in to see it so she could not sell it. I bought the farm off the lady(on contract) sight un seen. Never set foot on the farm or in the house. I had no idea there the ground laid. The lady evicated her daughter. Been here 50 years and never been sorry. People were more tusting back then At lest I was

Sad in that the entire world now requires lawyers and expensive filing fees in order to cement the "understanding". Fortunately some states are starting to simplify things with Living Trusts, Transfer on Death Deeds and such. Rental real estate seems to be going the other way...VERY tough to evict in many places.