Bob Velez writes: >A thought on landlords: > >Why should a landlord expect that rents will cover the entire cost of their >investment? Basically, the renters then pay the note and the cost of >maintaining a property that they have no interest in and the owner reaps all >the "wealth" created as the property appreciates in value both due to the >market/land value and the mortgage gradually being paid off.
Response by AE: My husband and I, both in our mid 30's, own and live in a duplex, and recently purchased the next door 4-plex, in the Powderhorn Park neighborhood. We bought these properties because we believe in our neighborhood and want to invest in it. We keep rent reasonable, but make sure it covers the cost of the property (principal, interest, property tax, insurance, heat, electric, H2O and sewer, city licensing fees). We do not pay ourselves and hourly rate for the work done on the building (between maintenance and bookkeeping, this averages 20 hours a week or more), and we pay for repairs and supplies out of our savings. The "wealth I will be reaping" in 15 or 20 years will have been earned by 2 major commitments... our unpaid and on-call labor, and our willingness to take a financial risk. If something dreadful happens to our neighborhood like the city building a freeway through the park, or building an incinerator across the street, the tenant can move - I just have to watch my property value plummet. I have no problem with the expectation that the monthly rent I charge cover the daily expenses of the property (and, due to yet another *huge* property tax increase - 28% - we will have to raise the rent this year). The trade-off for the tenants we rent to is that they do not have to worry about committing big down-payments toward a mortgage, they retain freedom and flexibility to move, they do not have to shovel or mow or fix toilets ... So, this is my response -- We are working hard now investing in the future. In 20 years we will have a supplemental monthly income and, hopefully, a valuable asset. I think that is all good and fair. I'd be interested in what others have to say. alx powderhorn park _______________________________________ Minneapolis Issues Forum - A Civil City Civic Discussion - Mn E-Democracy Post messages to: [EMAIL PROTECTED] Subscribe, Unsubscribe, Digest option, and more: http://e-democracy.org/mpls
