The past few months have been pretty busy. The rental cash flow has been as expected. I have had several turnovers, and some other maintenance issues to take care off. Luckily, all is well and the rentals have moved forward for another month.
Hopefully you have had a chance to look at some of my other cash flow posts and have been following my retirement countdown. As I get more detailed in my own retirement dashboard spreadsheet, and add more check points and cross checks, I realize this next year of working is mostly an exercise to put the final nail in the coffin of the cube farm.
So here is how the past month went…
Rental Cash Flow
The rents were all deposited in the bank or in hand by 7/3. That is 24 for 24. I still have another $250 yet to collect, which I can expect to receive on Friday. I have one tenant that always pays in two payments, so it is somewhat expected, but not desired. So maybe it’s closer to 23.6 for 24.
All Rental Units Are Full, except one
With the exception of my one remodel I am doing, all units are full. When you have a vacancy, there is always some work to do. It may be some additional cleanup, a touch up of paint, changing a faucet or something that will save time for the next turnover. Once the tenants move in, it is infinitely more difficult to fix things. There is extra coordination, all fixes have to be the same day (or you have to re-coordinate with parts and extra time), things may have to be moved out of the way, etc.
I have stated to show the unit to qualified renters, but no takers so far. After a bit more remodeling and a more completed look, it should ‘sell’ better.
No vacancies other than my unit I am working on are on the horizon. Although that could change within the hour. I had one tenant looking for a home, and she decided to wait for a bit. I suspect that it will likely be next year when she moves. So I put that vacancy off for a bit.
I am replacing the range in my vacant unit. I had a gas range, and I am changing it to an electric range. No small children will turn the gas burner on slightly and create a gas leak. The electric range will be the same as most of my other units, so I can swap parts and stock the most common parts that go bad. I use a Tappan TEF351EW self-cleaning electric range.
My trash company charged me an extra $120 for stuff that I threw in the dumpster. I will be disputing that amount as my dumpster should be able to be filled with broken down couches and torn down mattresses without an extra charge.
I will likely pave my parking lot. I received several bids, and it appears to be more expensive that I thought. Likely it will be ~$13,000 to get it done. I did explain that to my commercial tenant, and she agreed to pay an extra $200 a month. Her rent has been the same since 2009. I am hoping that my residential tenant, when filled, will be an extra $100 per month.
Of course, I still have mortgage payments, insurance, HOA fees, utility bills, property taxes, etc. that all add up quite a bit.
I have been giving out a few rent increases, the first I have done in many years,. With the economy getting better, expenses going up, and housing prices rising, there is room to increase rents. That is one way rental income keeps up with inflation in retirement.
|Date||Prev Rent||New Rent||Difference||2015 Vacancy Days|
|06/01/15||$995||$1,020||$25||Added Pet Rent|
Other Notable Expense Items…
I received a refund on the quadcopter from Amazon and ordered another. That new one did not ship on time, not even within two weeks, so I cancelled that order. I ordered another one, and that one has indicated it has shipped. So, maybe before winter I will have it.
How was the cash flow for your month? Have you experiences any rent increases, either as a landlord or a tenant?