(03-09-2024, 09:41 AM)StroudCrowd1 Wrote: Just catching up on this one. Mike clearly has never owned rental property, nor has he ever been a landlord. Then again, why would someone making 500k a year need to own rental properties?

You can't just charge what you want. The market drives rent prices, not a landlord. Being a landlord is hard.

Property taxes
Insurance
Mortgage
VACANCY
Property management (6-10%)
Routine maintenance
Capital expenditures (roof, plumbing, appliances, siding, painting)

Cash flow margins are slim, especially with interest rates Mike and the surburban women's presidents policies caused.

Of course you can't charge what you want.
Of course the market sets rental price.
If the tenant is paying enough to cover your costs, including property tax, you continue the investment.  If the tenant is not paying enough, you seek another tenant who will or sell the property.  The new owner presumably will structure their investment to be able to accept less rent than you were able to.  But this is a rare scenario.  Rent generally goes up, not down, as you know.

And you're correct that I've never been a landlord but I do know a few.  Property taxes are real, but the thing that's really screwing them are maintenance cost increases and insurance cost increases (which are both tied to raw materials and labor ultimately)

Again the point is not "landlords are bad" or "being a landlord is easy".  Not at all.  The point is "the tenant pays the property tax." And they do.

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