What Expenses (IF ANY) Do You Cover on SFH's?
Hi BP,
How do you guys typically go about expenses on a SFH? Do you have a general rule, or advertise relative to what the market is offering? I have yet to purchase a property, but think it would be smartest to pass the utilities, trash, and snow removal/lawn down to the tenants due to there being less variance; however, I'm having a hard time estimating rents as rentometer, Facebook, Craigslist, etc. doesn't always include if a listed rental rate is or isn't including X,Y,Z with rent.
Any help is greatly appreciated.
Thanks!
Most Popular Reply
@Lee Stephens
I pay electric water and trash for all of my properties for 2 reasons:
1. I never have to call and start a cleaning ticket, have utilities turned on for cleaning, worry about heat, etc.
2. I make a ton of money on it. Well not a ton, but a good bit. I live in a low rent area, Arkansas, but purchase prices are low as well. Here is an example. 10 unit apartment building all 1bed/bath paid $175k. Base rent would be 350 max. With utilities paid, I get $550. I figure water/trash to be roughly $50 per unit and electric to be around $100. I have had a few tenants go over the $50 water, but rarely. My leases states those numbers as maximums I will pay and the tenant is responsible for overages. My actual average water bills are $40 and electric is $75. I’m making an additional $85 per unit by paying utilities, because I could never ask $435 and get it, but by offering utilities paid, I can.