(Closed) Landlord or Renovation Bees…Help Please!!

posted 7 years ago in Home
Post # 3
Hostess
18643 posts
Honey Beekeeper
  • Wedding: June 2009

I would probably consider keeping the renters if possible, it will probably be super expensive to have the mortgage on it and do renos without the extra income.

Post # 5
Member
3344 posts
Sugar bee
  • Wedding: August 2010

If you keep the renters, I would lower their rent because they are going to have to deal with a huge increase in noise.

Post # 7
Member
1398 posts
Bumble bee
  • Wedding: May 2012

I would keep the renters for now, and sock away the income from their apartments, to renovate as they move out. Hopefully within a few years they will weed out and you can break down walls and incorporate one unit at a time into your home as they become available.

Post # 8
Hostess
18643 posts
Honey Beekeeper
  • Wedding: June 2009

@Ireland: We rent a home and we have insurance on the property.  It is more expensive than homeowners insurance where you live in the home.  You also will probably want to add some liability in addition in case something happens with the renovations.

Post # 9
Member
46383 posts
Honey Beekeeper
  • Wedding: November 1999

I would meet with an architect and have a set of plans for renovation drawn up that can be done in phases. You will end up with the home you want and your tenants will help pay for it. You can give notice to individual tenants as needed.

Post # 11
Member
2496 posts
Buzzing bee
  • Wedding: January 1991

DH’s parents are landlords and “inherited” tennants when they bought the house, which was also broken into 4 units (we actually live in one!!).  Depending on the type/longevity of the renovations, it may or may not be a huge deal to the other tenants.  DH’s parents regularly re-do apartments as they turn over, and there’s never been issues with tennants complaining.  If anything, they like it because all the issues they have with their apartments will get fixed. 🙂

Don’t forget that you do pay taxes on rental income, and are often responsible for some of the utilities, so while the rent money does help, it’s not totally “free” income, and there are other expenses to consider in your budget.  Honestly, you will really have to run the numbers and see how much left over you’ll have after taxes, utilities, and the mortgage to see if it will even cover the cost of any renovations at all.  I know for Darling Husband parents, they save the remainder to cover the property taxes every year/renovations, so they don’t get much left over.  They also don’t do major rennovations every year either, so it takes them a few years to save enough to totally re-do one apartment.

You should also ask if any of the tennants have ever caused issues.  Evicition is NOT a fun process.  I’ve seen my in-laws go through it twice and both situations were ugly.  Being a landlord is tough, and I would want to go in knowing as much as possible before committing. 

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