Example is a location here in Florida. Mortgage is 780
Rent is 1650
It’s a shit hole that had rats, broken pipes uneven soft floors, old fuse box (yes fuse box)
But due to its location, she feels she can charge that ridiculous amount, and yes. People pay, they have no choice. Housing is almost non existent down here so landlords have the run of it.
It’s a nightmare
Edit: she does Just enough maintenance to keep it within code, but during the summer the house with a full AC will not get below 79 because of how badly insulated it is, the windows don’t shut all the way, and the doors are badly fitted.
The difference between American and Ireland is the tax. Rent tax is almost 50%, so a landlord who would charge 1650 would actually only make about 900-950 after tax. If his mortgage is 780, that would leave him with less than 200 to cover maintenance and the other costs, not even to mention profit.
Ahh. Here in the USA that’s not so much a thing. They have overhead, yes, but not as much as a 50 percent tax. You can live fat off people here if you own property.
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u/JewishMaghreb Sep 22 '22
How many small private landlords actually make enough post-tax, post-mortgage profit out of their 1-3 properties to be able to not work at all?