Peakster's House Efficiency

[Peakster]

That's a good point, since it's really the interest that's the 'cost' of living here. Principal just decreases the interest over time. I just really want this place paid for so I can move up to a 3 bedroom bungalow (plus 3 bedrooms in the basement) plus 2 car garage. The strange thing is that even though my condo is a 8 minute walk to the University of Regina, the demand for room rentals has mostly been full-time employed blue collar workers looking for a cheap place to stay.

[Peakster]

Nearly one full month of telling the HOA my water reading for the month, they finally calculated what I owe and it's paid for. Jeesh! Here's what October's bills finally look like:

Natural Gas - $58.08
Electricity - $63.21
Water - $44.04

Other expenses:

Cable/WiFi - $60.35
Telephone - $47.95
Insurance - $22.42
Condo Fees - $125.00
Property Tax - $106.69
Debt Interest - $428.96

Total October '09 Housing Costs: $956.70

Rent collection from roommates: $1,650.00

Monthly Surplus: $693.30

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I'm starting to feel the pressure of renting this place 125% capacity. 5 people living in the house and still only one bathroom! The basement bathroom is well underway and it should be finished before the end of this year! Mortgage payment was simplified to just the interest of all my debts for the month (since the principle payment isn't really a 'cost').

A close friend of mine just got new energy star windows for her 1960s home and there are virtually NO drafts in the house anymore. I'm thinking that I should replace mine because I only have 4 windows in the entire place

[Peakster]

Just a wee bit of a mid-month update:

1). I ordered four new windows and front door for the place and they should be installed around March 2010. They were pretty pricey (about $5K including installation) but the curb appeal, extra sunlight through the front door, and the improved window seals will be worth it!

2). Basement bathroom has run into a snag where we found water just below the basement slab. Currently there's a deep sump pump draining the water in effort to get it dry enough to tie into the sewer line. I'm probably looking at about $3.5K spent on the bathroom rough-in by the time it's all done.

3). One of my roommates (the guy in his late 50s) is really getting annoyed with the current household antics (hey, it's a household of people in their 20s, what do you expect?) so I'm predicting he will be leaving soon. Thus rental income will most likely drop to $1,230/month with him gone. I'm not planning on getting another roommate to take his place until the bathroom reno is done.



The good news is that with the windows put in, bathroom added, and basement window installed (to make the basement 'bedroom' legit), those will be the ONLY renovations to this place. Then I'll just focus on paying this puppy off!

June of 2010 will mark the 2nd anniversary of working for the bank, so if I have all my financed renovations paid off by then, I might seriously consider resigning and running this place full time.

[Peakster]

Here's what November's bills look like:

Natural Gas - $66.37
Electricity - $61.91
Water - $70.63

Other expenses:

Cable/WiFi - $60.35
Telephone - $44.09
Insurance - $22.42
Condo Fees - $125.00
Property Tax - $106.69
Debt Interest - $467.75

Total November '09 Housing Costs: $1,025.21

Rent collection from roommates: $1,170.00

Monthly Surplus: $144.79

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As predicted, the older roommate has moved out thus rental income has dropped. I've moved into his old room now, clearing the way for basement development. Water usage was abnormally high, but with one less person living here, that should go down. The furnace is running a lot too! It's been -30*C and below for a few weeks now. Debt interest for the household rose due to the recent loan application to finance the new windows/bathroom addition.

[Peakster]

Here's what December's bills look like:

Natural Gas - $110.53
Electricity - $72.61
Water - $64.53

Other expenses:

Cable/WiFi - $60.35
Telephone - $44.09
Insurance - $22.42
Condo Fees - $125.00
Property Tax - $106.69
Debt Interest - $467.12

Total December '09 Housing Costs: $1,073.34

Rent collection from roommates: $1,170.00

Monthly Surplus: $96.66

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We had bitterly cold temperatures for the month of December (-30*C) to the point where the hinges on the front door squawked with stress every time it was opened. Oddly with just 2 rooms being rented currently and being some of the coldest weather of the year this place is still paying for the basic housing costs.



Basement bathroom rough-in has been completed (lots of jackhammering, dirt everywhere and pipes put in) and once the plumbing inspection is completed, we'll be able to continue with the project. So far the basement reno has been pricey... about $4,400 spent so far!

[Peakster]

Here's what January's bills look like:

Natural Gas - $84.38
Electricity - $122.09
Water - $60.39

Other expenses:

Cable/WiFi - $74.92
Telephone - $45.48
Insurance - $22.42
Condo Fees - $125.00
Property Tax - $106.69
Debt Interest - $449.76
Water Heater - $110.00
Legal Eviction - $30.00

Total January '09 Housing Costs: $1,231.13

Rent collection from roommates: $975.00

Monthly Deficit: $256.13

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Wow, what a crazy month! We had an eviction of the couple that occupied the master bedroom because of smoking marijuana in their room and wasting utilities (they had windows open in winter and left the oven on several times). So now we're down to just 2 roommates.

I'm occupying the master bedroom for now because of the basement reno. We're now in the midst of framing the basement. Still several more months before it's done.

New windows and the exterior door are paid for and should be installed this April sometime, so that should help with heating costs next year.

[Daox]

Sounds like things are going kind of smoothly.

Got any pictures of the remodeling?

[Peakster]

Here's what February's bills were:

Natural Gas - $89.81
Electricity - $82.59
Water - $63.22

Other expenses:

Cable/WiFi - $87.85
Telephone - $46.85
Insurance - $22.42
Condo Fees - $125.00
Property Tax - $106.69
Debt Interest - $442.83

Total February '10 Housing Costs: $1,067.26

Rent collection from roommates: $975.00

Monthly Deficit: $92.26

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So it's been one year since taking possession of my home and things are going quite nicely now. The bathroom pressurized water pipes are put in and framing is almost done. Soon we'll move to electrical.

[Peakster]

I think that now is a good time to give an update of my property - I've learned A LOT with my experiences renting out real estate. Life is like a rental property, you just never know what you're going to get!!! Here's some valuable information for anyone wanting to do the same as me (keep in mind I'm in Saskatchewan Canada. The laws may be different where you are):

#1: Have rent paid weekly instead of monthly
There are several benefits to this. You get paid on a more regular basis, weekly payments appear cheaper to the tenant ($120/week is actually $520 a month!) and in the event an eviction is desired, the tenant only needs to given one full week notice to leave instead of one full month

#2: Have bills included with rent payment
For one it makes it much more convenient for the tenant since they don't have to worry about fluctuations - and for another this way they don't realize how much (or more often for me) how little you're paying!

#3: Never rent to students
We've had 4 people live here as students (both part and full time) and all have turned out to be disasters. Paying rent is not their priority and often you have encounters with crazed parents who think their child can never do wrong.

#4: People that have jobs and live paycheque to paycheque are your best clients!!
These people know that paying rent is #1 priority (probably because of fear), often even above food. They also tend to be less disruptive to the household and have lower turnover simply because they can't afford to go elsewhere and will probably never save enough to buy their own home.

#5: If you think that you can judge a good tenant before you live with them, you need to find another kind of work!
The only thing predictable about renting real estate is that it's NEVER predictable! Some of the sketchiest tenants have turned out to be awesome while others that made excellent first impressions have done things where truth IS stranger than fiction (particularly the instance where one roommate woke up to a prostitute in his bed!)

Overall the first year was actually a good start. I've learned a lot, have plenty of real-life stories to tell, and rent just seems to keep increasing! I'm looking forward to what the future has to offer.

[Peakster]

Here's what March's bills were:

Natural Gas - $72.12
Electricity - $81.06
Water - $49.49

Other expenses:

Cable/WiFi - $58.98
Telephone - $64.17
Insurance - $22.42
Condo Fees - $125.00
Property Tax - $106.69
Debt Interest - $446.54

Total February '10 Housing Costs: $1,026.47

Rent collection from roommates: $975.00

Monthly Deficit: $51.47

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New windows and front door are getting installed tomorrow. Basement bathroom hasn't had any progress since my family and I went to California on vacation for a week. Some revolving credit was used recently causing some interest costs to jump this month.