Paying for a comfortable retirement

David has been busy painting Maria’s former bedroom:

Painting Marias room 004-A

We ordered new furniture, drapes and carpeting, and expect the renovation of both Maria’s and Lisa’s rooms to be finished by mid-April.

And then, we’ll focus on making the adjacent studio rentable. We considered renting it out as an unfurnished unit, but decided to furnish it, as it will be easier for the tenant to move in and out with only his clothing rather than his furniture, too.

There are many things to do, such as installing a new lock on the sliding glass door (which faces the backyard), installing a sheet of plywood on the interior door (to prevent the tenant from entering the main house), installing stepping stones in the yard leading to the studio, etc.

“We have to spend money in order to make money,” David said. “All of it can be deducted from our taxes as business expenses.”

Which reminds me, we have to apply for a license to do business as landlords.

A major bonus is the fact that we won’t diminish our profit by paying a maintenance fee, which would be required if our home were a condominium instead of a house.

David and I are baby boomers, those born between 1946 and 1964. As more baby boomers retire, they will need to find some way to pay for a comfortable retirement. Being a landlord is one way.

18 Responses to “Paying for a comfortable retirement”

  1. Olga Says:

    You two really jumped right in when you made this plan. My parents turned some rooms of their large house into a small apartment for extra income. Eventually, my brother bought the house and my mother ended up living in the apartment for a number of years before she died.

  2. granny annie Says:

    My house is easy to divide, giving one or two persons half with two bedrooms, a living room, bath and kitchen while leaving me my office, 1 and 1/2 baths, the den, and bedroom. I could make-shift a kitchen with microwave and small refrigerator in my office area. We would all have to share the utility porch washer and dryer. But it would give me the heebie jeebies having people living in half of my house. You sure have me thinking about all the easy changes I could make though to bring it about. Of course family reunions would be a bit difficult with everyone crammed into my half of the house.

  3. DJan Says:

    This looks like it will suit the situation well. I’m looking forward to seeing the final version! It also seems like a lot of work!

  4. Jeanie Says:

    It sounds like you are planning and preparing well to have a tenant. Have you alerted your friends and family that you will be looking for a tenant? Someone that a friend or family member already knows might make a good tenant.

  5. Denise Says:

    Good luck on your new venture as Landlords Gigi.

  6. mageb Says:

    Sounds good….all but the furniture. I would check with a Realtor about furnishing the unit. You might get more stable tenants if you let them bring their own stuff.

  7. marmeladegypsy Says:

    I think the idea of going into the landlord business is a good one. It sounds like it will work for you and you can afford to be picky on your tenant and all. I noticed Mageb’s comment and I think she has a point. If it’s not too expensive to keep the furniture you have in storage, you may be able to offer it furnished or unfurnished. If people bring their own, it’s less wear and tear on your furniture and if they don’t you are all set.

    On another note, thanks so much for stopping by The Marmelade Gypsy so regularly and your lovely comments. I have been behind in both visiting and commenting, but trying to catch up today!

  8. LC Says:

    Best wishes with becoming landlords. My father had half a dozen rental houses. He was handy and enjoyed doing maintenance, repairs and interacting with tenants, some of whom became friends. But over the years there were also a few deadbeats, people who abused property not their own, a few really weird folks and the rare emergency calls that came in the middle of the night.

    It seems that you and David are handy as well as having skilled people already lined up who you can call on if needed.

  9. Christine Says:

    This really sounds more and more like a great idea. And you are doing all your homework.

  10. SchmidleysScribbling Says:

    Good luck. When David finishes painting, he can come to my house. I have lots for him to do!

  11. Linda Reeder Says:

    I looks like you are well on your way to realizing your goal.

  12. Beatrice Says:

    Same here! We rent out to construction workers, engineers etc. my husband’s former atelier rooms. We also needed a business licence, but can also get taxes back. We often buy lovely used furniture from the social warehouses around, which is cheap, used, but ok and sometimes even really antique. So far we had only very nice tenants – we, means my SiL and I…..
    happy weekend,
    Beatrice

  13. Karen Says:

    Hi Gigi- not sure what you mean when you say you need a “business license”- we have a GET (General Excise Tax) number, which is what us used to file taxes for rentals, etc. if you learn differently, please share! Thanks

  14. Karen Says:

    *which is what WE use…

  15. LC Says:

    I have been thinking about those stepping stones, A young woman who worked with me had a nasty broken leg from stepping just a little wrong on one of the stepping stones out her back door. Another older acquaintance had a similar experience.

    My husband put some along our house to our backyard, and they gave me difficulty. Even before my stroke I just walked beside them, avoiding stepping on them.

    But with David’s knee issues I imagine you both are extremely conscious of safety. I shouldn’t worry; I know you have planned so well. But couldn’t get it off my mind.

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