When figuring the cost of owning a rental property it is important to include upkeep of the property as well as the obvious cost like mortgage and insurance etc. Just like your car needs an oil change every 3000 mile and needs new brakes now and then, your rental property will need some items as well. Time and time again property owners forget to include this cost when considering becoming landlords.
The national average for maintenance varies but you should expect to
pay 10-15% of the rental income out in upkeep cost. This number could vary
greatly depending on the current condition of the home, age of the home and
many other factors.
Here are some items that come up most often in the Northwest and an idea of
what the cost would be:
Yearly Gutter cleaning- $70-$130
Yearly Servicing of heating and AC- $120
Moss control on roofs- $50+
Maintenance to appliances- $70+ per service call
These are just examples of cost you should EXPECT as a rental owner. Also
figure in long term expenses like painting, flooring, roofing etc. No matter
how good your tenants are these items will eventually need replaced.
If money is tight and you’re having a hard time coming up with the funds for
items like this, try setting a few dollars aside each month to help offset the
If you have any further questions please visit www.northwoodspm.com