For years I have directed my clients away from housing that would bring lower priced rents. I have maintained that the returns are not worth the added hassles of dealing with the lower income mind set. And boy, was I right!
Go ahead. Let the insults and charges of elitism begin.
About 3 months ago a client of mine purchased a bulk of lower income duplexes here in the Kansas City area and after some thought, and being asked, I decided we would manage them. I’d never had properties in the $450-$500 range before because of the reason I stated above. But I thought we’d give it a go.
Out of the 28 doors we took over 19-20 of them are a royal pain in the rear! Rents cannot be paid on the first. They have to be strung out over the course of the month. Every little thing the tenant perceives as broken (never mind the fact that they’ve apparently lived there for 4 years and they are the one that broke it) illicits a call to the property manager…regardless of time of day. NOTE: I do not answer my phone after hours…I check the message to see if it’s an emergency. Does a broken fridge handle merit a 2:00 am call? I guess when you don’t work and your rent is paid by the Kansas City Housing Authority you can stay up to 2:00 am and bore people with your problems.
Income is income. No matter how much you make you can have savings…or not. It’s your choice. Live on less than you make. How complicated is that? But no. They call me on their smart phones while watching their tv’s with cable packages to explain why they cannot make their rent. Literally, not a day goes by we don’t hear from at least one person out there.
The great thing for me is if I reach my limit I can just terminate the contract and let the owners take care of these investment properties. If you’ve made the mistake of buying a bunch of lower income properties you are the one that is ultimately responsible for them. Think about that. 🙂