Wow, can you believe it’s already been 1 full year since I rented out Rental Property #1? Time sure does fly! I must say, it’s been a very pleasant experience so far.
My tenant pays rent on time, takes care of the place, and doesn’t ping me on a regular basis. This is just the way I like it. In return, I’ve always done my best to address concerns in a timely matter. Seems like a relationship that is mutually beneficial. As such, I decided not to increase rent this year. Rent will stay the same at $2090/month. Actually, I gave my tenant the option of extending the lease for 1 year, or 2 years, their choice.
Since they have really enjoyed living there so far, they opted to extended the lease 2 years at the same rate. So, my “dividend growth” will be 0% for the next two years, and three years overall. However, at this stage in the game, my primary focus is to achieve 100% occupancy for all my properties. The passive income is already stellar (for the Bay Area), so I’m not really in a rush to hike up rent. A vacancy for even one month would be brutal, so I’m going to try and avoid that as best I can.
I still have my full time job, so the passive income is allowed to snowball. With three rental properties + W2 income, hopefully I can shorten the time it takes to save up for the next downpayment. I’m aiming for another acquisition in October or November… Interest rates are rising rapidly so I gotta get back into the game soon! 🙂