Why you should always account for maintenance expenses...
My tenant calls and complains that the sink is not draining, I tell them ok I will get a plumber over there ASAP. I figure this is a simple fix. I call today and the initial estimate comes out to around $350...the existing pipes are old and need to be replaced...sure go ahead.
The plumber calls back and says...this system is very out of date and figures out that the pipes connect with my other unit on the other side of the building but nothing is holding it up...he will do the extra work for an extra $150 so now $500 total
He calls back AGAIN and says that while this is a good temporary fix, that's just it, it's temporary so something bigger needs to be done down the road...great!
My tenant calls me back and says "hey while the plumber is out there...our bathtub drain isn't working either have him look at it!"...I say ok I will have him take a look...I give the plumber a call and tell him to take a look while he is there...he figures another $200 to have the draining cleaned out!!
I am now down about $700...so long story short, make sure to account for maintenance in your expenses
Side note: My other tenant calls and wants a refrigerator in her unit, she has been renting from Rent-A-Center the last year or so....don't you just love it!
Most Popular Reply
@Steve DellaPelle Rule of thumb is to count 10 months of rent (to pay the mortgage) with 1 month going to pay taxes/insurance, and 1 month for repairs. It always happens. Investors forget about the wear and tear on the property. Renters are hard on stuff. Great post!