I am talking about A SOCIAL CONDITION THAT RELIES ON PROPERTY TAXES for the good of society.
Not enough people or businesses pay enough property taxes to support the system in its current form.
Thus my allusion to Social Security.
I am not talking about how I can make more money.
I am talking about how the government can make more money.
Aside from that , your response is spot on.
I still want to talk about how the government can make more money.
No matter how comfortable my personal situation, I need a better school system , hospitals that are not going broke, A functional police department , and a functional Fire Department. No matter how good my situation I will need the state to provide these things.
That is the discussion I am trying to have. Not trying to figure out how I can more profitably rent.
This news story is about the bailout after all.
My point is that when I go down to Enterprise and rent a car from them that they take all of their expenses out of my car rental payment.
A landlord is operating a business just like every other business. The cost of doing business MUST be paid for by the customer. If you are charging your tenants say $895.00 a month on a mortgage of say $850.00 a month then you are loosing money.
Sounds to me like you need to sit down figure out exactly to the penny what your monthly expenses are on your property and increase your rates accordingly. You should NOT be paying a single penny out of pocket on your rental property.
Not only that but if you have a 30 year mortgage and you are basing your rent on that 30 year mortgage you are loosing money as you are paying the bank and not yourself.
You need to try and keep everything within a 10 year period. That means that the property is completely paid for in 10 years. Now that means for the first 10 year of ownership you will not see a very big income from your property. Then once the final payment is paid you are able to keep the mortgage payments for yourself. If your mortgage payment is $1,200.00 then once you property is paid for you get to keep all $1,200.00. That is your payment as the landlord. Not only that but you should have enough money saved up to pay to have the roof fixed, buy a new water heater or air/heat unit, etc..
One of the draw backs to renting is some people just have to go out of their way to totally destroy other people's property. I have seen people move into a rental stay about 3 or 4 months and move out leaving several thousand dollars of damage behind. Some state allow landlords to buy what is called Renters Insurance that helps pay for some if not all of the damages left by a tenant that cannot be covered by the damage deposit the renter pays when they first move in. I rented from a company that charged me the first month, the last month and a $500.00 deposit. Then they told me that if I lived there a year I would get the first month free when I renewed my lease. That right there eliminate a lot of problems. Renters with that kind of money will most likely take better care of your property.