All Forum Posts by: Andrew T.

Thanks Byron! I was tempted to use your method as well. The end result is nearly the same for your method vs mine in terms of charging extra. The main difference I see is in your method of charging a flat rate, the tenant clearly understands the reason for the charge whereas an increase in rent could be more vague and potentially scare tenants away from the get go. But for those who showed interest in the property, the lower electric bill was a big wow factor in attracting them, as if it was "free $$".

Update: What I ended up doing which I really liked, as some have suggested here, is I built in cost of solar into rent. Its a win win for landlord and tenant. Landlord gets to raise rent and have solar paid off consistently, without hassle of asking tenant for monthly payments based on electric bill and solar production. Its a win for tenant because on their end they don't know rent has been raised due to solar (although you can certainly mention it if need be), and instead they see a lower electric bill. 

Thank you all for your responses. I could charge monthly based on the electric usage and the going kW utility rate. However, the simpler route of determining a monthly average for past year and incorporating that into the rent seems to be more appealing. There is the risk that the tenant may negligently use more electricity as a result, but I suppose that is a risk I'll take and can make any adjustments at lease renewal.

How dose one incorporate Solar panels into the lease, in terms of tenant paying the electric utility? Specifically, I am planning to rent out my home which I own solar panels and currently have a loan ending in 5 years. Our electric utility Co. charges me for the months which my electric usage is greater than the electricity generated by my panels, typically during the winter months. The electric utility has to stay under my name so that I can track and apply for Solar Credits monthly.

Should I simply charge a flat monthly fee for electricity? Would love to know what others have done!

Another meet-up? Awesome! I'll try to be there. The value and connections I gained from last time was huge! Thank you and Jake for organizing these.

Greetings!

Andreas here, from North NJ (Essex County), looking to connect with other financial freedom loving people, including local investor-friendly  realtors, and like-minded investors.


And a Q: currently I live in a 1/2 acre SFH currently valued at 525k, mortgage at 300k at 30 Year fixed 3% rate, 10k taxes, in a HCOL area. The town here is setting an up-tick in value with a new college campus being built. I am currently fixing/renovating the home, mostly DIY and mostly small/medium scale projects (kitchen reflooring, expanding shower in bathroom, landscaping), in an attempt to increase its value and make it "Rent Ready". My wife, 2 kids, and potentially a 3rd soon, are planning to move in 2 years (to give us time to finish DIYs, allow 3rd baby to come, and time for me to build up cash). We are looking to buy a new home with much smaller acreage, either SFH or ideally a 2-3 unit property, in Morris, Essex, union, Passaic, hudson, or Bergen county.

Ok! Thank you for hanging in there with me,  now for the Q- a few investors I have spoken to asked why not sell my primary home instead and use all the cash to buy a bigger investment property with higher yield. My primary home should rent at 3.5k monthly rent btw. Personally, life is very busy already with 2 and soon to be 3 toddlers at home! So I want to take a simpler route possible for me first investment property. 

Should I sell or rent my home is my first Q? 

Should I buy a SFH, duplex or triplex and house hack?

Should I simply buy a small condo/studio, fix it up (nothing too major), and rent it out? 

I appreciate any and all feedback!

Have a great day,

Andreas