That's not even accurate. Landlords don't make anywhere close to 85%. It varies wildly by market, but around here we clear maybe $30-40 per unit per month after expenses.

All it takes is one shitty tenant to wipe out years of profit on a unit, which is why our screening criteria is so high and why we've largely avoided problems with this latest fad of not paying rent.

On a human level, some landlords are reasonable, good people and some are worthless shitheads. That's to be expected.

There have always been people around these parts who have a philosophical objections to people deriving profit from providing a necessity like shelter.

I've never been entirely clear on what changes they would make to eliminate landlords or how those changes would be remotely feasible in a country like the United States.

Ah yes, the “service” of owning property and seeking rent.

A typical expense ratio (% of rent on operating expenses like maintenance, not including CapEx) for residential properties is like 40-60%. I've seen a little lower and a little higher but they are mostly in that range. That's not including opportunity cost of having your capital tied up in the building and interest expenses.

Commercial properties are even less profitable (in terms of margin%).

If this is accurate, it seems like a great argument against trying to make a living being a landlord in your market. Would I go through the hassle of dealing with ten different tenants for $300-400 per month? No I would not.

The problem is you see all the landlords as greedy land barons. I built a house 3-1/2 years ago with a 3 car garage. Above that garage I added a one bedroom suite.
During Covid the gal had to work from home and than laid off. Our CDN government provided CERB which was $2000 a month. I reduced her rent and did not charge her for internet and she still stiffed me. Though she had Skip the dishes almost daily. I evicted her it took 60 days but she is gone

People abuse the system plain and simple and the ones facing real hardship pay the price

Indeed. I can't or don't want to buy my own property, so I enjoy using that service. Do you have an issue with hotels, too? Air BnBs? Is there something inherently immoral in buying something and charging others to use it?

What is Skip the dishes?

Think DoorDash, but Canadian.

Although we have DoorDash as well.

Ah. Thanks. That makes sense.

I believe these people are usually called "commies".

Come on you guys, show some humanity. Landlords can afford to not receive rent payments for a couple years! Besides, if you just make housing free there will be less people out on the streets. Just look at Los Angeles!

Analogies really aren't your thing, are they, Inso0? I was not suggesting that a landlord's profit margin is 85% (actually, that's not even how it's calculated. 8.50 is 85% of 10, but 10 is ~667% of 1.50, so the profit margin in that example is ~557%), I was drawing attention to the point that it's a free country, you don't like the service someone provides, or the price point at which they provide it, then don't use it.

That’s fine. If those guys want to make a thread about how hard their life is, I’ll mock them as well. Suck it up, Buttercups.

This is why you rarely see medium sized landlords. It's mostly people with one or two properties relying on increasing property values as pseudo retirement savings, or giant corporations who make it up on volume and efficiency.

High risk, low reward. I'm sure Trolly would love a fat discount on his rent without the need to pay a landlord. He may be less excited about that when it's time to replace something expensive, or his heat goes out at 4pm on a Friday in the middle of winter and there's no number to call and make it someone else's problem.

I equate being a landlord to working in retail, except every single customer that comes through the door is someone already pissed off and looking to speak to a manager. Nobody calls the landlord unless there's a problem. It's only ever problems.

The worst is when there's infighting between tenants and they expect me to solve their issue. No, I cannot install real locks on your bedroom door because it's against the fire code. If you think your roommates are stealing your **** then you should've picked better roommates. If you decide to install locks on your own then you will absolutely be charged for removal and repair once we find out.

1 star Google Review - "Landlord wouldn't violate fire code on my behalf. **** these guys."

Rocco, do you agree that an overhaul of the housing system to eliminate rent like you propose would need legislation? Fifteen months into the moratorium that’s what the Supreme Court said in my estimation, this drastic change in policy requires legislation. That’s my biggest issue here I do not want people kicked out on a massive scale all at once.

Like it or not this is the system we have. It is not up to the CDC to suspend the system fifteen months into the emergency. Not when the Supreme Court says a moratorium requires an act of Congress.

They are now collaterally attacking the housing industry like they've been attacking the automobile and restaurant industries.

Soon, everything will be owned by massive, international corporations if we don't stop it.

Oh noes, I’ll have to call a repairman instead of asking you to call a repairman.

Yes, yes, I know. But the anti-landlord crowd legitimately believes that property ownership is equivalent to owning a money-printer and that's what I was getting at.

Also, quick correction. 667% is the markup, 85% is the margin, and I have no idea what hat you pulled 557% out of.

Markup = Percentage of cost
Margin = Percentage of revenue

You didn't answer the question.

Margin = percentage of cost - 1 (or 100%). If you pay 1.00 for something and sell it for 1.50, your margin is 50%; if you sell it for 2.00, your margin is 100%. If you pay 1.50 for something and sell it for 10.00, your margin is 557%.

Yep, it's just that easy.


Still wrong, but Google can set you straight better than I will.

There is a character in washoe's thread called that, but I can't quite put my finger on which one.

Rocco, do you recall?

I mean, there are a lot of definitions of margin:

https://www.investopedia.com/terms/p/profitmargin.asp

I'm sure mine is one of them, but too lazy to read the whole thing.