Bait title? Maybe, but also a reminder that no matter how much I get annoyed with my tenants, it is a very profitable business. Of course there are ups and downs each month, but overall, the returns are good. Even if none of my properties met the 1% rule! (Not available in my area) . So this reminder is as much for you as it is for me, my net on the rentals this month is $1,851 for one hour of work! Do I really want to give it up? How fed up am I with being a landlord? I regularly check my ROE and, so far, I wouldn’t get as much of a return if I invested my equity in the market. Without further ado, my May 2018 Income, Expenses And Goals.
Update on layoff notice: None. Moving along…
FI CASH INCOME – $1,670
Monthly FI (Financial Independence) income:
I added a row to report the principal repayment for the rentals. Why? Because it is money in my pocket! (and it will help me stay motivated a little while longer, hopefully). Every month, part of the rents is applied against my principal (mortgage on rentals), it reduces my debt and increases my equity. May not be cash today but it will be when I sell the condos. The plan was to keep the condos until I turn 55. I have to admit, as I get older I don’t have as much patience and I am not sure I will make it another 4 years! But then some days, I still look at multi-family units! No, I am not bi-polar, but ask me tomorrow!
Dividend & Interest Income: $809
Not my highest month but it was expected, next month should be much better. Still a 79% increase over last year. Most of it just because I started paying attention!
Stocks/ETFs I received dividends from in May:
- REI.UN – RioCan Real Estate Investment Trust
- CPG – Crescent Point
- ZAG – BMO Aggregate Bond ETF
- CJR.B – Corus Entertainment Inc.
- IPL – Inter Pipeline Ltd.
- ZDV – BMO Canadian Dividend ETF
- FIE – iShares Canadian Fncl Mthly Inc ETF
- ALA – AltaGas Ltd.
- ZDI – BMO International Dividend ETF
- **New** CCA.TO – Cogeco Communications (only paid early May)
- GIS – General Mills
- PG – The Procter & Gamble Company
Rental income from my three rental units, all condos. You can read more info on my units here.
I was lucky this month, considering I was away for two full weeks in Australia and no crisis! But in the last week, they all reached out to me:
- Tenant 1 couldn’t find her garbage! Not sure if she expected me to come look, but I didn’t!
- Tenant 2 couldn’t remember how to turn the outside tap on. It’s ok, it’s only their third year there!
- Tenant 3 got into an argument with one of the neighbours AGAIN! She wanted me to complaint to the condo corp. No biggie, I spent ½ hour on the phone with her and she was fine.
It is a very lucrative business but, some days, the little things are draining! Not as much as my burst pipe story. (haha, get it?)
I estimate the time spent on rentals this month to be around 1 hour, includes another brief call, while I was in Australia, from Tenant 3.
$1,851 per hour!!!
Am I ready to give that up? Do my tenants annoy me that much?
Related post: To Be A Landlord Or Not To Be?
Side Hustle Income:
- None, I was gone for half the month but thinking I need to declutter again and sell stuff!
EXPENSES – $5,123!
83% increase over last month. YIKES! See where it all started and why I keep track of my expenses here
Tip: Update your spreadsheets regularly!
Categories from Household to Cell phones are consistent each month so I will stop commenting unless something changes. You can refer to the December post for details.
Related Page: Monthly Money Reports
I forgot! With the closure of our office, we no longer have payroll deductions for donation at work. And I totally forgot until now. I need to catch up , I am behind 5 months! Once I am unemployed, I will re-evaluate how much I can donate, for now I have no reason not to. Big one time donation coming up in June.
This month I will start keeping track of car related expenses separately. I will go back and update the previous months before next report. I always look at all options for the future, and one of them may be to move closer to town and get rid of the car. So to help me with future decisions, separating car expenses makes sense.
- $1,599 for car insurance! It covers the four of us, including my 17-year-old son who recently got his drivers’ license. It’s so much more expensive for boys!
- Annual CAA (AAA) membership to add my son. I am a little paranoid when it comes to cars so we are all included in the membership, peace of mind for mom for basic car issues. (I still can’t change a tire).
- Cash for my son for his birthday, he wants to buy a gaming computer! And a little spending money for one of my daughters who was going to Europe for 10 days visiting friends.
- My son needed waterproof shoes for his summer job (he went for a trial in May). He will be doing lawn aeration and driveway sealing. He didn’t want to be stuck inside and he HAD to get a job! It’s a great job if you are good at it, otherwise not that great. Long hours and all based on commission. On his trial day, he made $230 but he didn’t get home until 10:30 PM!
I bought four plane tickets for July for my kids and I. We are going away for 10 days, the four of us (blended family is hard work, so taking a break with my kids now and later, one with my partner). I used my credit card rewards for the base fare and paid for the taxes – $766!!! Next month the VRBO cost is due. I didn’t go cheap. I thought the money I saved from my Australia trip was icing on the cake and decided to spend a little more than I was planning to for our accommodations. It could be my last year with all three kids now that my oldest is graduating. GYM will be proud #YOLO.
We are going to Playa Del Carmen, Mexico.
Well I was gone for half the month and all my expenses were covered so I did ok in the “other” section! Phew.
Most of it was for my birthday (YES TO MYSELF) and includes wine (3 bottles!!!), chocolates, my favorite body cream (half price on my birthday so I stocked up) and a beautiful (and expensive) candle.
I received several gift cards for my favorite coffee shop so if I continue to pace myself, I can make it until the fall without spending any of my money for expensive lattes (and I don’t have to report it either! haha).
Summary – FI ratio is 46% YTD including kids expenses. This month FI income is not great again but I had the one time car insurance and the taxes on the flights. Except for more travel and unexpected expenses, I am done with major expenses for the year.
- Reduce Grocery bill by 30% or $200/week. We are doing great! I missed last month’s report but will definitely post an update shortly. For previous reports, check Monthly Grocery Reports.
- Increase my dividend to $12,000. Still on target at 41% of my target dividend income in five months.
Related post: Managing Your Money: Needs vs. Wants
- Reached 9 months milestone, only three more to go.
- The numbers are not good. You can check out my Blog Report to get all the details. Taking a one month break didn’t help at all. I am still confused with SEO. Facebook is not making sense to me so I set up my profile but haven’t been back. I tried Reddit but it’s also time consuming and it’s not bringing any traffic so far. I know it can, just need to keep trying. Maybe I should have done my homework, like Tom over at Dividends Diversify, and read a few books about blogging before I started!
- I reached over 600 followers on Twitter. It looks like I gained more followers when I was inactive for a month!
The main goal remains to keep enjoying it and make it to One year at least!
Related page: Best Blogging Tips
- Cut back on Sweets: Except for the one week after my return, when I ate sweets every single day (I did bring lots of junk food back from Australia). I was “good” the rest of the month.
- My average daily steps were 9,903 in May compare to 10,414 last month! I worked long days in Australia so didn’t walk much during the work week. I am back on track and very motivated. Updating my goal to 10,000 steps per day. You can’t make your goals too easy!
That’s it for this month. Maybe I need to cut back on the report, it’s getting pretty
boring lengthy. Let’s see what I can come up with for next month.
How about you? How was your May? Have you ever been to Playa Del Carmen? Any suggestions?
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