Newbie Landlord Questions

4 Replies

Hey BP world. I'm ready to get out and purchase my first rental property but need some insight on some questions I feel are kind of hindering me. If anyone could help me out with these questions it would be GREATLY appreciated. Thanks in advance.

 -Does the landlord or tenant(s)  pay for HVAC?

-Also when dealing with Multifamily units do you want separate meters or not?

- Is a profit and lose statement the same as an APOD (annual property operating data)?

Hey Deangelo!

- Tenants pay you rent. Ideally, you're putting aside a portion of that rent each month for Capital Expenditures. If the HVAC needs to be repaired, you should use those funds to do it. Thus, the tenant should indirectly be paying for it.

- Having separate meters is ideal because you're then able to assign that cost to the tenant. If there was only one water meter for the property, how would you fairly distribute the cost for the water amongst all of the units? Alternatively, if each unit has a separate meter, there's no guessing how much each unit owes. This makes it relatively easier and more straightforward to assign that cost to them. 

- Yes, I believe they are the same for the most part. However, I haven't seen many profit and loss statements incorporate gross scheduled income and vacancy into them like an APOD does. 

Thank you sir for your time and energy. Now I feel well equipped going out in the RE world. Thanks again.

Originally posted by @Dan Turkel :

Hey Deangelo!

If there was only one water meter for the property, how would you fairly distribute the cost for the water amongst all of the units?  

As an aside, this is a common issue in the Boston market for smaller multifamily units.  My unit has separate electrical and heat, but joined water/sewage.  Landlords usually build this cost into the rent.

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