5 Year Plan Discussion

[greekfire]

I’m not a huge fan of 5-year plans, but I am this close to acting on one. I am a fairly long-time Pigg and continue to rent after all that’s gone on in the SoCal housing market. We currently rent a 3/2 1700sf home in Carlsbad for $1800. We’ve been here since 2006 and the owner’s haven’t raised the rent in four years. Actually, when we moved in I negotiated to have it reduced from $1865 if I was to keep the lawn mowed.

The owner’s purchased the home back in the 70s and own multiple properties in San Diego County. They are set financially, but are old-school when it comes to saving. Stock carpeting throughout, old appliances, old fixtures, old paint, etc. They basically invested the bare minimum in the general upkeep and maintenance of the property and only replaced stuff when it was broken. They are very hands-off when it comes to keeping up on things at the property, but when something needs to be done, they are good at taking care of it.

When we moved in everything was pretty much dead, dying, or dirt. That’s part of why the monthly rent was so low. We’ve since worked with the owners and have made a number of improvements to the property. Some were done by us, some by outside contractors.

Soooo, here’s our quick and dirty scenario. I don’t see things changing in the housing market or economy for a while. I work from home and my wife is a full-time mom. Our oldest child just started kindergarten at a highly rated school nearby. I love Carlsbad, but unfortunately don’t make enough at this time to afford purchasing here. My plan is to lock in on a 5-year lease at the current rate and contract terms.

However, I want to propose making some additional upgrades to the place such as painting and installing hard wood floors in the general non-room living areas. This will entail some cost, but I would propose that if the owner pays for materials, for example, I would supply the labor free of charge in return for a stable long-term rent.

My thinking is that we would be happier in a more updated place with some long-term rent security and the owners would be happy with some nice improvements (and reliable, happy renters) at an attractive price.

I’ve floated this idea to owners and they were open to it. There is much more to this than what I am mentioning, but this is the basic thrust. Any personal experiences/advice is welcomed and appreciated!

[Ricechex]

I would be hesitant to sign a 5 year lease. What if in year 2, something happens and you have to leave? Granted, you could find some other renters, but do you really want that hassle?

If they have not raised your rent in 4 years, it is likely the owners are older and the house is paid off. Thus, the rent is gravy, they like having reliable tenants, they already have enough money to live within their means, and don’t need to stir the pot by raising rent.

I have a similar situation, been in this pretty nice rental house, no rent raised in 10+ years. Landlady is old school, and elderly now. For the small stuff, I fix it and don’t bother her, considering I have a good rent. I have had the interior painted a couple of times, just because I like things looking nice and fresh. Replaced a 1970 large window AC, stuff like that. Figure that these improvements are a mere thanks to the landlady for not raking me over the coals all these years. She is similar to your owners, stock carpet, basic upgrades, etc.

Also, the less you have to bother with the owners, the better, they will be less inclined to raise rent, find new tenants, etc.

I would forgo any major improvements, and save your money, so when that gravy train ends, you have the means to buy a property of your own in Carlsbad.

[Ricechex]

I would be hesitant to sign a 5 year lease. What if in year 2, something happens and you have to leave? Granted, you could find some other renters, but do you really want that hassle?

If they have not raised your rent in 4 years, it is likely the owners are older and the house is paid off. Thus, the rent is gravy, they like having reliable tenants, they already have enough money to live within their means, and don’t need to stir the pot by raising rent.

I have a similar situation, been in this pretty nice rental house, no rent raised in 10+ years. Landlady is old school, and elderly now. For the small stuff, I fix it and don’t bother her, considering I have a good rent. I have had the interior painted a couple of times, just because I like things looking nice and fresh. Replaced a 1970 large window AC, stuff like that. Figure that these improvements are a mere thanks to the landlady for not raking me over the coals all these years. She is similar to your owners, stock carpet, basic upgrades, etc.

Also, the less you have to bother with the owners, the better, they will be less inclined to raise rent, find new tenants, etc.

I would forgo any major improvements, and save your money, so when that gravy train ends, you have the means to buy a property of your own in Carlsbad.

[Ricechex]

I would be hesitant to sign a 5 year lease. What if in year 2, something happens and you have to leave? Granted, you could find some other renters, but do you really want that hassle?

If they have not raised your rent in 4 years, it is likely the owners are older and the house is paid off. Thus, the rent is gravy, they like having reliable tenants, they already have enough money to live within their means, and don’t need to stir the pot by raising rent.

I have a similar situation, been in this pretty nice rental house, no rent raised in 10+ years. Landlady is old school, and elderly now. For the small stuff, I fix it and don’t bother her, considering I have a good rent. I have had the interior painted a couple of times, just because I like things looking nice and fresh. Replaced a 1970 large window AC, stuff like that. Figure that these improvements are a mere thanks to the landlady for not raking me over the coals all these years. She is similar to your owners, stock carpet, basic upgrades, etc.

Also, the less you have to bother with the owners, the better, they will be less inclined to raise rent, find new tenants, etc.

I would forgo any major improvements, and save your money, so when that gravy train ends, you have the means to buy a property of your own in Carlsbad.

[Ricechex]

I would be hesitant to sign a 5 year lease. What if in year 2, something happens and you have to leave? Granted, you could find some other renters, but do you really want that hassle?

If they have not raised your rent in 4 years, it is likely the owners are older and the house is paid off. Thus, the rent is gravy, they like having reliable tenants, they already have enough money to live within their means, and don’t need to stir the pot by raising rent.

I have a similar situation, been in this pretty nice rental house, no rent raised in 10+ years. Landlady is old school, and elderly now. For the small stuff, I fix it and don’t bother her, considering I have a good rent. I have had the interior painted a couple of times, just because I like things looking nice and fresh. Replaced a 1970 large window AC, stuff like that. Figure that these improvements are a mere thanks to the landlady for not raking me over the coals all these years. She is similar to your owners, stock carpet, basic upgrades, etc.

Also, the less you have to bother with the owners, the better, they will be less inclined to raise rent, find new tenants, etc.

I would forgo any major improvements, and save your money, so when that gravy train ends, you have the means to buy a property of your own in Carlsbad.

[Ricechex]

I would be hesitant to sign a 5 year lease. What if in year 2, something happens and you have to leave? Granted, you could find some other renters, but do you really want that hassle?

If they have not raised your rent in 4 years, it is likely the owners are older and the house is paid off. Thus, the rent is gravy, they like having reliable tenants, they already have enough money to live within their means, and don’t need to stir the pot by raising rent.

I have a similar situation, been in this pretty nice rental house, no rent raised in 10+ years. Landlady is old school, and elderly now. For the small stuff, I fix it and don’t bother her, considering I have a good rent. I have had the interior painted a couple of times, just because I like things looking nice and fresh. Replaced a 1970 large window AC, stuff like that. Figure that these improvements are a mere thanks to the landlady for not raking me over the coals all these years. She is similar to your owners, stock carpet, basic upgrades, etc.

Also, the less you have to bother with the owners, the better, they will be less inclined to raise rent, find new tenants, etc.

I would forgo any major improvements, and save your money, so when that gravy train ends, you have the means to buy a property of your own in Carlsbad.

[CA renter]

If you’ve already mentioned this to your LL and they are open to it, I don’t see a problem with it. It sounds like a nice deal for both you and the LL. The only thing you might want to work out is some kind of agreement if you should need/want to move out, maybe you’d agree to find the renter and not allow for any vacancies.

Best of luck, and enjoy your upgrades! 🙂

[CA renter]

If you’ve already mentioned this to your LL and they are open to it, I don’t see a problem with it. It sounds like a nice deal for both you and the LL. The only thing you might want to work out is some kind of agreement if you should need/want to move out, maybe you’d agree to find the renter and not allow for any vacancies.

Best of luck, and enjoy your upgrades! 🙂

[CA renter]

If you’ve already mentioned this to your LL and they are open to it, I don’t see a problem with it. It sounds like a nice deal for both you and the LL. The only thing you might want to work out is some kind of agreement if you should need/want to move out, maybe you’d agree to find the renter and not allow for any vacancies.

Best of luck, and enjoy your upgrades! 🙂

[CA renter]

If you’ve already mentioned this to your LL and they are open to it, I don’t see a problem with it. It sounds like a nice deal for both you and the LL. The only thing you might want to work out is some kind of agreement if you should need/want to move out, maybe you’d agree to find the renter and not allow for any vacancies.

Best of luck, and enjoy your upgrades! 🙂

[CA renter]

If you’ve already mentioned this to your LL and they are open to it, I don’t see a problem with it. It sounds like a nice deal for both you and the LL. The only thing you might want to work out is some kind of agreement if you should need/want to move out, maybe you’d agree to find the renter and not allow for any vacancies.

Best of luck, and enjoy your upgrades! 🙂

[greekfire]

The beige carpet gets dirty easily, especially with two young children. I have to clean (spot treat, vacuum, steam clean, and dry) it about once a month or it looks embarrassing. This is not a fun or quick process and it seems the carpet gets dirtier and dirtier with time.

Ripping up the carpets and installing wood floors would be a pain, but it is almost worth it considering how often I have to clean the carpets. Besides, I also have a good friend who is very handy and is willing to help me install the flooring for free.

I don’t bug the owners about small stuff. We’ve made a number of minor improvements over the years to the landscaping with plants, grass, installing sprinklers, painting the exterior, etc. and I only charge them for parts.

When we first moved in SDGE said they wouldn’t light the pilot to the original heating unit because they said it was a fire hazard. The original water heater sprung a leak and needed to be replaced and there was a hot water line leak that they had to bipass.

[greekfire]

The beige carpet gets dirty easily, especially with two young children. I have to clean (spot treat, vacuum, steam clean, and dry) it about once a month or it looks embarrassing. This is not a fun or quick process and it seems the carpet gets dirtier and dirtier with time.

Ripping up the carpets and installing wood floors would be a pain, but it is almost worth it considering how often I have to clean the carpets. Besides, I also have a good friend who is very handy and is willing to help me install the flooring for free.

I don’t bug the owners about small stuff. We’ve made a number of minor improvements over the years to the landscaping with plants, grass, installing sprinklers, painting the exterior, etc. and I only charge them for parts.

When we first moved in SDGE said they wouldn’t light the pilot to the original heating unit because they said it was a fire hazard. The original water heater sprung a leak and needed to be replaced and there was a hot water line leak that they had to bipass.

[greekfire]

The beige carpet gets dirty easily, especially with two young children. I have to clean (spot treat, vacuum, steam clean, and dry) it about once a month or it looks embarrassing. This is not a fun or quick process and it seems the carpet gets dirtier and dirtier with time.

Ripping up the carpets and installing wood floors would be a pain, but it is almost worth it considering how often I have to clean the carpets. Besides, I also have a good friend who is very handy and is willing to help me install the flooring for free.

I don’t bug the owners about small stuff. We’ve made a number of minor improvements over the years to the landscaping with plants, grass, installing sprinklers, painting the exterior, etc. and I only charge them for parts.

When we first moved in SDGE said they wouldn’t light the pilot to the original heating unit because they said it was a fire hazard. The original water heater sprung a leak and needed to be replaced and there was a hot water line leak that they had to bipass.

[greekfire]

The beige carpet gets dirty easily, especially with two young children. I have to clean (spot treat, vacuum, steam clean, and dry) it about once a month or it looks embarrassing. This is not a fun or quick process and it seems the carpet gets dirtier and dirtier with time.

Ripping up the carpets and installing wood floors would be a pain, but it is almost worth it considering how often I have to clean the carpets. Besides, I also have a good friend who is very handy and is willing to help me install the flooring for free.

I don’t bug the owners about small stuff. We’ve made a number of minor improvements over the years to the landscaping with plants, grass, installing sprinklers, painting the exterior, etc. and I only charge them for parts.

When we first moved in SDGE said they wouldn’t light the pilot to the original heating unit because they said it was a fire hazard. The original water heater sprung a leak and needed to be replaced and there was a hot water line leak that they had to bipass.

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