Thursday, February 6, 2014
Maintenance expenses of the house-2
And in order to maintain your rental property you need to have funds set aside. The rent coming from the property is not enough since most of the time it goes towards paying off the mortgage. And although it is an investment property and you can deduct it on your taxes (in the U.S. at least, all other countries should check their own local tax code) you still have to pay upfront for the upkeep and pay all the expenses necessary to keep it in shape. And this the people sometimes forget when buying a rental property, with my experience I know that if you rental property is near your place of residence (like 10 to 15 miles) and you happen to go through them every day then you can manage your property but if it is in another state where you go very infrequently or just when you have to collect rent or check on them, then it becomes a problem to maintain it unless you have somebody nearby to check on it once in a while and take care of the necessary repairs if need be in an emergency. And after being a landlord for more than a decade, I have come to the conclusion that if you want to have a rental property, you should opt for either a condominium or an apartment. I will give you the reasons for that. Condominiums are easier to handle than stand alone property because most of the time (again I am talking about the U.S.) the building has a full time handyman who can take care of minor repairs in your apartment. You don’t have to worry about the security as you have to close only one door and the garbage is collected by the building so need to go out and through it on the curbside in the cold sometimes.