Im very new to this guys, but feel I am getting close to pulling the trigger. I am looking to buy a rental property in the Atlanta area. I have a few questions as I am not exactly sure as to what is required or customary for a landlord to include in rent in this area. I live in NYC, and here just about everything is included in the price of rent except for electricity and gas for the stove (paid by tenant). Water, snow, lawn, are covered by the land lord, sewer and garbage are included in taxes. I'm looking at single family or small multifamily (duplex/triplex) houses, and need to know what tenants pay and what the landlord is responsible to pay so that I can calculate accordingly.
Thanks for all the help here guys!
Hi @Mark Romano ,
Our group invests in several apartments in the Atlanta MSA and that is going to be a hard question because it will be very submarket driven. Some areas and demographics may be All Bills paid, some may be RUBs (ratio utility bill back) where residents are billed back for their usage, and others residents pay own. I would recommend reviewing comps in the specific submarket you're looking in and use that as a guide...or asking property managers you may be considering using (my assumption since you're in NYC).
Hope this helps.
Hi @Mark Romano
The answer depends on the type of property and if it units are individually metered. Generally speaking
1. Gas - Paid by tenants
2. Electricity - Paid by tenants
3. Water - Most smaller rentals in Atlanta don't have separate water meters as such the landlord pays for the water. Now based on historical water bill you could include it in your rent but you will eventually end up paying water
4. Property Taxes - Landlord
5. Sewer Taxes - Landlord
6. Cable/Internet - Tenant
7. Insurance - Landlord but included in your numbers
8. Renters Insurance (recommended) - Tenant
9. Lawncare - Depends on the property. I typically pay for lawncare on multi's. Single Family let the tenant's take care of it. If they don't I send my lawncare guy and charge the tenants for the same.
10. Application/Tenant Screening Fees - Tenant
11. ACH Fees if any typically paid by tenant
12. Re-key fees - Tenant
13. Property management - Landlord built in your numbers
Again the above depends on the lease, property, tenant/landlord relationship. I am speaking in general terms. Hope this helps.
@Mark Romano if you live that far away, how do you intend to manage it? I recommend you hire a property manager and they can answer all these questions for you. If you try managing from a distance you are asking for trouble, particularly as a beginning investor.
@Brent Kawakami thanks!
This is great stuff! Thanks so much. I’ll be leaning on my property manager however this is a nice overview!!!