All in One List for Rental Property

6 Replies

I wanted to start this off with asking everyone what list they use to plan for expenses on their rental investments. Basics like planning for taxes, insurance and destructive tenants are on every list but I am struggling to find a list that has all those granular details of things like CPA and accounting costs, Lawyer fees, Leasing commissions paid to property management if its not built into a flat fee and so on. Any and all items we can add to this list would be great. 

Hey Adam, its relatively cut and dry depending no what times of transactions you're working on. In the SFR space, there really shouldn't be much in the way of additional legal and accounting costs. Sure, you may need to file a few extra forms, but it's really not rocket science and any half decent CPA should be able to do it for you for no more than a few hundred bucks.

I always account for the following when UW deals:

- Property taxes

- Property insurance (including an umbrella policy)

- Property management monthly fee

- Property management re-lease fee (I assume I have a new tenant move in each year)

- Owner paid utilities (if any)

- Maintenance and repairs (for a SFR, I assume between $75-100/mo)

- Capex reserve (depending on the condition of the major things in the property, this will drive cap ex reserves)

- Turn reserves (I like to have at least $750 in the bank for a turn)

Other than that, depending on whether or not a property is held in an LLC or not, I may add an additional LLC fee of $800/yr (since I live in CA) and I will also usually throw in an additional $200 in accounting expenses. The nice thing is that as I grow my portfolio, the LLC fee and accounting gets split up amongst multiple properties so on a per property basis it becomes less expensive.

Hopefully this helps, but feel free to reach out with any additional questions. 

May I ask what the purpose is? I mean, this sounds like an awful lot of work for a very small payoff. Maybe you should add a category to your expense list titled, "Time wasted building super-detailed lists that won't help me in any way." LOL!

Seriously, it's a joke. I put "LOL" at the end so you know I'm not trying to insult you.

Maybe you're a data nerd and just love to play with numbers. If that's the case, I would suggest you find a way to put your skills to work for you by analyzing new deals instead of micro-analyzing existing deals.

There's no need to get so granular. Most people buy an investment without really knowing the most basic numbers but they still manage to make a good return if they just stick it out. Investors that set aside 50% of their income towards projected expenditures like maintenance, capex, and property management are likely to fair far better. Adding nit-noid details beyond that is likely to have very little effect on your return, if any at all.

@Adam Murray I was going to post something along the lines of what @Nathan G. said.

I will add that you have to find a balance between to granular and too general. It is probably more important to be consistent than to be really granular. Consistency allows you to compare property to property and year to year. 

Thanks for the replies guys. all of it helps and Michael addressed some of the little things I was curious about as expenses at I think of as out of sight and out of mind. 

Originally posted by @Michael Albaum :


- Turn reserves (I like to have at least $750 in the bank for a turn)

Other than that, depending on whether or not a property is held in an LLC or not, I may add an additional LLC fee of $800/yr (since I live in CA) and I will also usually throw in an additional $200 in accounting expenses. The nice thing is that as I grow my portfolio, the LLC fee and accounting gets split up amongst multiple properties so on a per property basis it becomes less expensive.

Hopefully this helps, but feel free to reach out with any additional questions. 

Great stuff and thanks for the help.