Rental Property Update September 2009

By | September 25, 2009

Philadelphia - Street ViewThis post is an update on my rental property in Philadelphia. In this section, I talk about my landlord experience – the good, the bad, and the ugly. All my posts that are related to the rental property can be found in the Rental Property section, including the bad tenant saga series).

August was another quiet month from my tenants. My property manager, Earl collected the rent payment and mailed me a check for the rent minus his service charge.

I received a letter from my property insurance company, All State to renew the terms for another fiscal year. The premium for another year is $412.31. I thought I should try to see if I can get a cheaper premium plan, so I called All State. I asked about choosing a higher deductible, from $500 to $1000. The All State representative mentioned a new insurance plan is in the works. It will combine the benefits of CPL and fire, and it will be called the Landlord Policy. Unfortunately she could not get a quote from their system at the time and asked me to call back next time. All State said that they would mail me some information about the new plan. I decided to wait for it.

Below is a snapshot of the rental income and fees since the new tenants have signed the lease in June 2009. Boston renter suggested to add in my monthly expenses such as insurance, taxes and interest on the mortgage to see the true cash flow. I have added those numbers in this post. The net is not so pretty. See for yourself.

Rent Payments
$900 June 2009
$900 July 2009
$900 August 2009
Total: $2,700

Fees
Real Estate Agent Service Fee for Finding Tenant $900 (one month’s rent)
Property Management – Service Fee: $0 June (first month free)
Property Management – Service Fee: $63 (7%) July 2009
Property Management – Service Fee: $63 (7%) August 2009
Total: $1,026

Mortgage Interest
$517.96 June 2009
$517.27 July 2009
$516.57 August 2009
Total: $1,551.80

Fire Insurance (All State) (paid $407.20 in Oct 2008 for one year)
$33.93 June 2009
$33.93 July 2009
$33.93 August 2009
Total: $101.79

Liability Insurance (All State) (paid $160 in Oct 2008 for one year)
$13.33 June 2009
$13.33 July 2009
$13.33 August 2009
Total: $39.99

Property Taxes
$112.58 June 2009
$112.58 July 2009
$112.58 August 2009
Total: $337.74

Net: $-357.32

Read more:
Rental Property Update October 2009
Rental Property Update August 2009

3 thoughts on “Rental Property Update September 2009

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