Well, I am writing this one today as we all know that this recession is hurting all of us. I will tell you as a landlord of ten rental units we are hurting as well. Renters think that landlords have all of the money in the world and that the landlord just takes this money and flies off to Aruba with it on the weekends. Well, I am going to St. Croix for the weekend but it is on the AF Reserves dime. The truth of the matter is that most landlords only make $100-200 per month on their rental properties if that. I have run into and even have my own rentals that just break even and even negative cash flow on the mortgage payment. Most people just allow these to fall through to foreclosure while the respectable people try to make up the difference.
The difficult part of this is that in todays economy renters are losing work and getting ripped off which doesnt give them the ability to pay their rents which in turn sucks the landlords dry. I know the feeling as I am owed about $4k right now and am considering eviction on a couple of tenants that have always been good tenants until they were put out of work. I wish that I could help more but it isnt practical.
I know you are thinking,"You have to treat it as a business, and kick them to the curb!" I disagree with that feeling. While, Yes it is a business, more than likely I wont be able to rent the properties immediately to another tenant due to the market and these are good people. When you have worked with someone for years they become more than a tenant, and when they are having a hard time, you want to help.
If the people are bad people, drugs and drinking all of the time, kick them to the curb. Trust me I have been there as well, and I have no remorse over kicking people to the curb that are a drain on society, I even kicked a guy out on Christmas Day before. When I was in the military and just beginning this, there was a rumor about me that I shut the electricity off on my own sister's place. Thats not true at all, and my sister and I have a great relationship, but I am no stranger to bad people and doing what is necessary.
The balance is here that you have these good people that are having hard times like all of us and they have to go. It is too bad because in any other circumstances this would never happen. I try to help but once it starts to hurt the pocketbook, it has to become a business once again.
Tell me what you think and how you handle your property.
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