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Rental Property Expenses - Things You Didn't Consider

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					Rental Property
Expenses


By: Curt Cloyd – Director
Personal Wealth Academy, LLC
         Rental Property Expenses - Things You Didn't Consider
                                        By: Curt Cloyd – Director
                                     Personal Wealth Academy, LLC

We all know that rental real estate is one of the most lucrative real estate business models. It brings in
passive income to you month after month while at the same time appreciating your net worth
significantly.

But there are actually a lot of issues with owning a bunch of rental real estate properties too. You'll be
subject to various costs and other issues that you may have to handle from time to time.

One article that I recently read at CTHomesLLC.com that discusses four possible expenses where rental
real estate properties can become a serious hassle.

You may want to check that article out.

The most common expenses you are likely to encounter as a real estate investor with rental properties are
costs for exterior maintenance, appliance costs, re-leasing and professional property management
services.

Even though the author points out some of the important costs that you are most likely to encounter, I
still feel that there are a couple of crucial points that the author at CTHomesLLC.com has missed out.

Here are some other rental property expenses that you're likely to encounter...

1. Property tax

Depending on your state's local laws you may be required to pay property tax on a regular basis. Well...
this is something that you need to prepare yourself for because the tax rates are likely to change on a
yearly basis.

Unless you're living in the same city/state where you're renting the property out, I strongly recommend
hiring a professional real estate asset management firm that can manage your rental properties and
ensure that all laws are followed.

2. Renovation costs

You are also likely to encounter renovation costs when your tenant moves. Now... even if you have a
proper contract in hand, there are always chances of your tenant leaving your home for some reason or
the other.

Now once your tenant vacates your home, you'll actually have to renovate the home a little more before
you can let a new tenant in (it may just be simple fixing of the plumbing or a repaint). These things can get
expensive too.
So there you go… these are some expenses you'll encounter with rental property apart from the expenses
mentioned in the article at CTHomesLLC.com.

If you are really serious about building your real estate rental empire, you need to take care of ONE very
important thing - Cash Flow.

Cash flow can really make or break your real estate investing career. Without the cash flow, you won't be
able to get the financing you need for all of your investments.

If you still don't have a business that brings you consistent cash flow that you can rely on for your
investments, Click Here

				
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posted:11/13/2012
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Description: We all know that rental real estate is one of the most lucrative real estate business models. It brings in passive income to you month after month while at the same time appreciating your net worth significantly.