The rents were almost all collected and deposited by 1/5/2015, so the rental cash flow was consistent with previous periods. I do have one tenant that paid $400 for the first installment of the rent. The same tenant seems to struggle, but since she has been there for a while, I let it ride. Any new tenants I took in over the past few years, they must pay late fees.
So, as has been the case for a considerable time, all rents were collected in a timely manner.
I paid down my HELOC loan that I used a portion of to pay off a mortgage last August. What started as a $50K loan is now down to $4K. It will be paid off at the start of February 2015, just as the intro interest rate of 1.99% expires. I saved about $3,800 in interest in 2014 by paying off the mortgage, and will have an additional $13,740 in annual cash flow because of it.
January 2015 Rental Cash Flow
All rents were collected and deposited in the bank by Monday January 5, 2015 with the exception of $525 from one of my renters. She paid $400 on the first (or second?) in cash, but needed another week for the remaining $525. She was one of my renters that I inherited with the purchase of a property, and has always paid in full, typically buy the 10th. I do not charge her a late fee, as I was not really doing that for a few years after I bought the property.
A note to prospective landlords, always charge a late fee and you will avoid pate payments. All my tenants that came in the past 3-4 years pay a late fee, even if only a day late.
My duplex in West St Paul continues to sit vacant. I have been changing the ad every seven to ten days, lowering the price or changing the text just a bit. The price started at $1,300, all utilities included, which was ~$85 higher than it was. Listing the unit at $,1300 scares a lot of tenants, and makes it hard to complete with places that are advertised at lower prices and the tenant has to pay utilities. So, I have adjusted the price a bit, and it now stands at $995 + $225 for utilities. $1,220 total, which is about the same price as it was. I see that Section 8 will pay $1,270, but it is not worth the extra $50.
I also have deleted the ad, and immediately re-posted it on Craig’s. That gives a fresh date on the ad for anyone that is looking at how long it has been on the market. The traffic has picked up considerably, and I hope to get it rented, and a deposit in hand, by month end. I am willing to wait for a great tenant, as great tenants look for a place 6-8 weeks before they have to move.
I have had a considerably increase in interest since the first of the year, and have even turned down a few people. Dealing with a headache tenant is not worth it.
I have three tenants that have sort of given notice. One has started looking for a house. The other two have notified me to help them find a home. I have a real estate license, so that will be an extra bit of income for me if I can help them. Last year when I received my license, it was one of the things that I knew would help increase revenue and make tenant turnovers less painful.
Maintenance Log Updated
I updated my maintenance log to include approximate times in minutes for each event. It does not include any trivial events that I immediately forget, or even questions that tenants ask about things unrelated to their tenancy, like computer problems or applying for credit. It also does not include maintenance items related to apartment turns, answering question from outside apartment agencies if tenants move, taxes, filling out Certificate of Rent Paid (CRP) forms, etc. Or even HOA Presidential or management duties that I perform.
It appears that it takes about 5 hours per month in my initial short analysis to handle emergency and maintenance calls, or about 12 minutes per unit, per month.
Last Minute 2014 Expenses
I was able to prepay several items such as Insurance and buy some supplies that I know I will need for 2015 improvements. Not a lot of expenses, but maybe $3K to $4K that would have been spread out over the next few months. That allows me to expense the items in 2014 and offset my income.
In 2016, my income will be much lower, as I leave my full time job, so it will not be as much of an issue then.
What was your cash flow for the month? Are you investing for your future in a 401K, IRA or other savings vehicle?