What type of expenses can I expect on a first time rental?

Question

Brendon Woirhaye · Answer

Expect the unexpected!  Beyond the easily visible and predictable flooring/repainting/cleaning/landscaping costs, figure that you will have more than one discovery of other important issues - the water heater needs to be replaced, the garbage disposal seizes up, the rain gutters are broken, some internal wiring is messed up and a light doesn't work, a bathroom fan starts making lots of noise after its run for a few minutes, a water main breaks..

Make sure you have a cash cushion - or line of credit (credit card in a pinch) which you can use to address unexpected costs, some of which can be pricey.

Once you get a renter in place and start operating, consider all your routine costs - property taxes, insurance, local licenses and fees, maintenance and gardening, utilities and city services (that the tenant doesn't cover), tax preparation, legal, landlord association dues.. and put extra aside for non routine repairs and capital expenses.

Marcia Maynard · Answer

Excellent advice from @Brendon Woirhaye.

@Chad Prescott Welcome to landlording!

Education: Bigger Pockets (free or upgrade to a paid membership); Books (electronic or printed); Memberships (local landlord/rental association or real estate investor associations); Classes (if reasonably priced, such as those offered by local rental associations.... not Guru courses!).

Professionals: Home Inspector; Trades (plumbing, electrical, drywall, paint, cabinets, floor covering, doors, windows, siding, roofs, landscaping, etc.); Accounting; Legal; Lenders; etc.)

Value of Your Work: Don't overlook the value of your time and talent. Whether you are self-managing or contracting property management to others, there will be a significant investment of your time, energy, and talent. Make sure those closest to you are on-board, either supportive and rooting from the sidelines or on the front lines with you as a teammate!

Good Luck!