We rent out our 4-bedroom house for 1, 400 dollars a month. We include water and sewer. I am often asked what we bring home from the rentals. Today, we will discuss the costs of doing business. The general consensus is that landlords make money hand over fist. We had one year we had 25,000 in losses.
To maintain the property:
repairs 5,000 a year
lawn supplies 200 dollars
advertising 100 (We change tenants every year)
taxes 2400 dollars
travel to the property 4 times a year 1000
total 8, 700
So, we bring $ 8, 100 from the property.
Recently, I have changed how the property is to be used. We rent it as a two bedroom so I can have control of how people in the property. We do not want the septic taxed. We have had a lot of wear and tear on the property from large families. Legally, you can't say I don't want a family of 6 or 8 moving in. One option is to eliminate the two bedrooms into storage.
How do you determine the price of a rental? You look at what houses and apartments go for in surrounding areas. We are about 800 dollars below the market value.
No comments:
Post a Comment