@AAQ
You write about the need to have the highest paying renters in my response to not renting to students; a group I label as destructive and transient,
So, if I can rent a 3br to six students for $4800 month plus utilities or a couple with 3 children for $4100 per month. I’ll take the family. The wear and tear from 6 students far exceeds the family. They tend to move friends in without permission. They tend to leave after the academic year and the unit needs painting every time. They have no pride in the place.
The family wants to live in nice surroundings and does not generally trash the place. Typically only have to paint after 4 years if they renew leases. They want stability, don’t trash the grounds, etc.
Yes property is expensive, but I look at the rental market and aim for 85%of market rate on a new purchase that is financed. If it can’t carry at a 10% return, not worth buying,
Typically, landlord loses a month’s income every time there is a change of tenant. Lease expires 11:59:59 pm and can’t expect to have it ready for move in at midnight.
Outside of NYC, landlord pays real estate agent, typically one month’s gross rent on a year’s lease.
I don’t use agents, we own an in house Real Estate Agency. Mostly get my tenants by referral from happy existing tenants whose friends and families are anxious to live in my properties.
BTW you talked about appreciation in deterring your profit. You neglect to mention depreciation, that wonderful accounting system that throws off tax saving snd profit. After 29 years (used to be 15) and depreciation to zero one doesn’t sell and have a huge taxable capital gain from reduced cost basis. Instead one doesn’t a like kind property swap, avoids the tax and gets to start depreciation again. I’m