@fakenews
B”H my properties are not financed, so I am not subject to fluctuations in interest rates.
In 2007/8 when the markets imploded, real estate values dropped. Many with mortgages found themselves underwater and lost their properties.
AND: my real estate taxes dropped for a year when my town made the next year’s budget. I passed the savings along to my tenants by lowering their rents proportionally for my tax savings for the renewal one year leases.
When taxes and insurance and maintenance are stable I do not increase rents at renewal time. This year real estate and fire taxes are increasing 2.5% based on the grand list of Oct 1, 2025 (payment due in January 2026-we pay taxes in arrears in CT). Tenants will get a proportional increase when lease renews. Example 2 family house with $600 tax increase, each tenant will get a $25 increase for the coming lease year. I don’t increase their $2500 month rent by 2.5% which would be $62.50 unjustly enriching myself.
I set a 10% net ROI for myself (7% which I could get in a stock dividend<which I do regularly for clients and self for 40 years >, and 3% for my efforts/labor time in managing the properties, doing bookkeeping and taxes, etc.)
If I had to pay a mortgage those 3Br 2 bath central A/C modern apartments would have to bring in $3800 mo rent, which is comparable in the area.
I’d rather have long term stable families as tenants who can afford the rent on dad’s income while mom can raise the children and watch over the property.
Not unusual for me to get a text from a tenant stating that the kitchen faucet broke and the bought a mid price replacement from Home Depot for $40 and they asked their son in law to install it so as not bother me to get a plumber. I immediately Zelle them the cost of the faucet and express my thanks.
Long term good tenants are the key to financial sucess as a landlord, turnover is a killer.
Today is the last Friday of the month bc and many of my tenants have already paid rent for July. I have not had to bring an eviction action in about 20 years and I”H will never have to do so again