Real Estate Report – March 2018

The Real Estate Report – March 2018 edition is a lot better then the Saving Rate report for March, which we posted earlier this week. Where we personally had a bit of a “rough” month financially (everything is relative!), the real estate investments happily continued along.

Real Estate Report – March 2018

Rental Income

Our rental income for March 2018 was the again the same as for January and February (love this boring stuff!), which means we received about €3.640 in real estate related income.

The monthly income distribution is provided below:

Real Estate Report - March 2018 Income

Real Estate Report – March 2018 Income

Rental Expenses

The expenses for March 2018 were low and consisted of the following:

  • Mortgage and loan payments; and,
  • Management fees.

Insurance payments are due again in April, no maintenance required this month either. Property taxes are coming in May. So not a whole lot of money disappeared  from the bank account in March.

We did get a bit of 2017 property tax back! We had gotten a wrong assessment and complained about it (about 12 months ago already). “They” thought we were right and gave some money back. Always nice and better late then never! Another positive note, the tax assessment for 2018 seemed right.

The expenses for the month are as follows:

Real Estate Report - February 2018 Expenses

Real Estate Report – February 2018 Expenses

Real Estate Report – Overview

The net rental and loan income for March was €3.082. The net cash-flow was a bit lower at €2.028. As noted earlier, we have a mortgage and we provided a private real estate investment loan that does not pay out the monthly interest (hence a lower net cash-flow). We will get this interest income once the loan matures in late 2020.

Total net YTD income is €8.030, net cash-flow is €4.873. Keep in mind that we will spend about €10.000 this summer on renovations, so this year will not be very lucrative investment wise! That being said, this should be the last large expense for the next decade or so. There will be small stuff, but no major work like this.

Real Estate Report - March 2018 Overview

Real Estate Report – March 2018 Overview

Real Estate Report – Forecast

Considering we are going on a long road trip later this month, we are no longer looking at new properties or other investments/renovation works. Everything that we needed to do is done, so we can go on holiday with a peaceful mind. We just need to hope that nothing strange happens, and if it does, it will be taken care of by the property manager.

 

How did you do in March?

Please follow and like us:

14 comments

  1. I always love to read your updates! They are inspiring and I recognize a lot of your thoughts. With my wife and two daughters we will start traveling (road trip through Europe) for 5-6 months in February 2019. As a preparation, I was looking for good management for our 3 real estate objects. However, I am disappointed to see that management fee is always a percentage of the rental price although the services are not different. Now I am considering to start a real estate management company for myself. How did you select your real estate managent company?

    1. Great initiative! I applaud your entrepreneurial spirit 🙂 Are you going to be able to survive financially at €30/month/unit? Most of these guys make the money at the selection of the tenants, the usually break even (or marginally make some money) on the monthly fees. At least, that’s what I’ve been told by some of them.

      We have two different firms that we use, both are national chains (Rotsvast/Interhouse). We selected them primarily due to their experience and contract models/legal support in case shit hits the fan. We not only see this as a useful tax tool (ability to keep the property in Box 3) but also as a risk management tool. We don’t mind paying a bit more, if we know they are on top of things and are critical in their tenant selection and screening. We usually ask for their track record in terms of problem tenants. We have dismissed several smaller companies because they could not prove solid business practices. Oh, and you probably already tried this, but we will ask for deals if we would bring multiple properties, most companies will be willing to accept a lower monthly fee. Sometimes you even get a break for the selection and screening of tenants too. They depend on your business, not the other way around, let them work for you as a client!

      Awesome plans for 2019! That’s an even better road trip than we are planning for later this month! Where are you going? Have fun in any case!!!

      1. The €30/month/unit is cost-effective and even contains a positive margin. The next meet-up I would love to join so I can explain my thoughts regarding real estate management.

        Since we start travelling in February, we will first go to the sunny weather in Spain and travel from there throughout Europe. We do not yet have a routing planned. The route you planned looks great! Are you also visiting the “grand canyons of Europe”; Verdon Gorge? I heard great stories about it. Have fun with your family

      2. Guess it also heavily depends on the overhead, which for the national chains is likely a lot higher than for you. Glad to read that this is cost-effective! These numbers should get you quite some work.

        Will drop you a line for the june meetup, still have a few spots left. I’m interested in having that chat!

        Albeit we were not planning on that Verdon Gorge, it looks like it’s not a bad idea for a detour. Stunning, thanks for that tip.

  2. As Steve Miller used to sing, “Keep on rockin’!” 🙂
    Finding here that’s is really difficult to find anything worth investing in for LTRs. My buddy is going heavy into Realty Mogul and Realty Shares. Seems to be getting some good returns, but I kind of like the hands on, landlord thing.

Leave a Reply

Your email address will not be published. Required fields are marked *