What expenses to expect as a landlord???

Question

Rich N. · Answer

yes, depending on the location of the property (some city/states allows this).  The OP would have to ask the city if they allow this (not sure of the property location).  In Massachusetts, this is not allow.

The only way you can separate (sub-metering) the bill is to have all plumbing updated at the owner's expense to water saving devices and have it certified by a license plumber.  You think that is bad? I think the original law was you had to have a license plumber physically change it all.

Anthony Angotti · Answer

If there aren't separate meters (even houses zoned for 2/3/4 units sometimes don't have them) you can either pay to have them separated or just separate the bills. Most tenants won't fuss, but for instance water can be separated by occupancy. If you have a duplex and two people live in Unit A and one in Unit B, Unit A pays 2/3 of the water bill and unit B pays 1/3 of the water bill. This is because logically you have more or less people using water. You would have to pay the bill, but you could charge them a separate fee.

Does that make sense?

Rich N. · Answer

As long as there is a separate meter for them, they can pay for it.   So as long as this is a legal 2 family, you should have at least two electric meters (hopefully 3 if there are common areas).  For heating systems, there should be two meters too.  For the hot water tank, if there is two, then its theirs too.

Besides property insurance and water/sewer, I think all common areas, landscaping, and in some cities maybe even trash (check your local area).

As for consumables like light bulbs, I consider if its inside the unit door, its theirs.  If its outside the unit door its mine.

Thomas S. · Answer

You need to pay a return on the equity in the property from the rent ahead of any other costs. Cash lying dead in a property must earn it's keep or there is no point in having it.

Cash purchases are not a prudent investment strategy except for those investors that fear debt. There is no real financial advantage.

Anthony Angotti · Answer

This is a bit of a copout, but the bigger pockets rental property analysis tool is pretty much a coverall. Have you run your deal through it yet?

I would do that first and then ask a few questions. Also when they refer to CapEx they are talking about all of those pesky expensive repairs like roof, sewage system, plumbing, electric, etc.

Sam LLoyd · Answer

So, most people would agree that the more bills that go to the tenant, the better.  So, if there are two electric bills, the tenants pay that... if there are two heat bills, the tenant pays that.  Same with water and sewer... If there are 2 meters, then the tenants pay that... but if there's only one, then the landlord will pay it.  I can tell you from personal experience that it's a headache trying to get a tenant to pay for another tenants utilities.

In Alaska, the rules say that the landlord does not have to pay for trash unless it's 3 or more units... but if you have tenants that won't take care of their trash, that's something you might want to pay for... just so the place looks better.

Of course, internet and TV is the tenants responsibility.  How much of the interior maintenance (light bulbs), and exterior care (lawn mowing), all depends on how you put it in the lease agreement.

I hope this helps, let me know if you have a more specific question...though things might be a little different for me due to location.