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Updated almost 4 years ago on . Most recent reply

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John Rippy
  • Milwaukee, WI
1
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Lawn Care And snow shovel fee

John Rippy
  • Milwaukee, WI
Posted

I live in Milwaukee, WI and own two duplexes next to each other. My units are well updated and I’m able to collect higher than average rent for the area. Having said that, to maintain the yards in the summer and snow shoveling in the winter, I’m considering levying a $20/month yard maintenance fee to take care of it all.  It would be in addition to the rent and would be known upfront before a new tenant signs the lease.  Do any of you levy a fee on your tenants for these items? Is it a bad idea considering my rents are already higher than average? Anybody from Milwaukee have any thoughts on this idea? 

Thank you. 

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Corina Eufinger
  • Rental Property Investor
  • Oconomowoc, WI
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Corina Eufinger
  • Rental Property Investor
  • Oconomowoc, WI
Replied

For duplexes, you have two approaches. You can include it rent and just increase the rent (no need to separate it out fee wise just bulk it in).  Or you can assign it to one particular unit's responsibilities and then have that rate be about $20 per month below the market rate. But I personally don't like that option for liability reasons (mostly with snow).  If a tenant slacks on it and a guest or the other tenant slips and falls you are responsible for it, and now in more than one way. If you sourced it out and the company didn't salt then your insurance company could go after the snow removal company.  If you leave it with a tenant, someone slips and falls and sues you, your insurance company will take the hit because they can't go back and sue the tenant because technically the tenant is your 'employee' in that scenario according to the courts.  

You can have a tenant take care of the lawn care and give them a rent reduction of $15 a month  But I would outsource the snow removal and snow care to a reliable professional person that is insured.  

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