This month’s review will be pretty short. To sum it up, all rents were paid on time and there were no maintenance calls. Total time spent on my rentals during March was about 30 minutes. Gotta love months like this.
Another boring month, which I love. No messages from my PM about something breaking. No calls about a missed payment. Just silence and passive income at $475 this month.
Just like RP#1, March was a nice quiet month. Full rents, no maintenance, and maximum cash flow at $421.
As I mentioned earlier, I devoted around 30 minutes total to this property this month. My property manager shared with me that the tenants were planning to break their lease contract early. The tenants had signed an 18 month lease and as of the end of March still had 5 months to go.
After a few email exchanges with my PM, we decided to charge them 2 months rent for breaking their lease early. So even though they’ll be moved out by the first week of April, they’re still being held responsible for paying all of April as well as May’s rent. My PM talked with the tenants and they agreed to these terms.
Securing 2 months rent for breaking their lease would also allow my PM plenty of time to lease the house to a new qualified tenant. Though from the PM’s experience, the particular neighborhood where this property is located in gets leased out very quickly so we should have a new tenant in there before May. My PM will perform a walk through inspection this week to see what condition they’ve left the house in. Barring no damages aside from standard wear and tear, they should receive their security deposit back. Hopefully, the cost to turn the property over will be minimal.
Total March Cash Flow: $896