what does the landlord do with all that rent money?

Answer 1

That depends on the landlord. Good landlords will pay all their costs (Buildings Insurance, Land Taxes etc.), pay their Mortgage and put some money aside for repairs / decorating etc. A bad Landlord, which applies to most "Private" Landlords, will only pay out what they are legally obliged to pay and take the rest as profit. They put nothing aside for repairs etc. and if repairs are needed they use cowboys to do the work as they are cheap but the quality and standard of the repair is poor. Most "Private" Landlords will only rent their properties until the time that they can make a huge profit from selling the property, usually after the Mortgage has been paid off. In other words, you will buy their property for them and once you have done so, you have to move on as they will reposses the property so they can sell it as vacant, at a huge profit.

Answer 2

Hi,
This is what I do with the money I collect in rents.
1st. Pay the mortgage.
2nd. Pay property tax.
3rd. Pay water and utilities.
4th. Pay for trash and plowing, and landscaping.
5th. Pay for all repairs and upgrades.
6th. Pray that I make at least some profit! Truth is, I do that in steps 1-5 too!

Answer 3

Pays mortgage,, insurance,, taxes, maintenance on the house.

Consider also he is taking a chance and deserves a reward for this . He could get 5% on his money in a bank, what do you think a fair return is for his investment in rental property?

Answer 4

He pays the mortgage and utilities for that property, the rest (if any) he will bank and save for any repairs that may be needed to the building.

Answer 5

pay the mortgage, insurance and taxes. Then with what is left over chances are he/she is reinvesting in more rental properties.

Answer 6

Pays his mortgage payment, repairs, maintenance, taxes, etc. In most cases there's darn little left once those items are covered.

Answer 7

Many things. Most probably pay their mortgages.

Answer 8

pay his bills