- Joined
- Aug 29, 2007
- Messages
- 2,042
Marcus
Sorry I didn`t respond sooner I am on holidays and only use the net from work.
Most of what adds to expenses have been mentioned and personally one of the expenses I add is the cost of self managing. Time is valuable and you need to pay yourself.
Unexpected expenses like hot water tank, furnace, repairing water leaks, evictions, vacancies advertising etc. add up and magically eat into your NOI.
It is difficult to accept that rental properties cost as much as they do to maintain but I personally do not dispute the statistics.
A good example of unexpected costs is for me the cost of grass cutting this year. It is already $400 more than in past years due to the amount of rain and the cutting season is not yet over. I have had a unusually high number of septic problems and I have been told my snow plowing costs will likely rise this winter as a result of last years high snow fall and the price of fuel.
My present property should average about 40% expense wise but this year it looks like it will be higher than average so hopefully next year I`ll be under 40%.
(I don`t own buildings so my expenses are lower than the 50% average.)
Sorry I didn`t respond sooner I am on holidays and only use the net from work.
Most of what adds to expenses have been mentioned and personally one of the expenses I add is the cost of self managing. Time is valuable and you need to pay yourself.
Unexpected expenses like hot water tank, furnace, repairing water leaks, evictions, vacancies advertising etc. add up and magically eat into your NOI.
It is difficult to accept that rental properties cost as much as they do to maintain but I personally do not dispute the statistics.
A good example of unexpected costs is for me the cost of grass cutting this year. It is already $400 more than in past years due to the amount of rain and the cutting season is not yet over. I have had a unusually high number of septic problems and I have been told my snow plowing costs will likely rise this winter as a result of last years high snow fall and the price of fuel.
My present property should average about 40% expense wise but this year it looks like it will be higher than average so hopefully next year I`ll be under 40%.
(I don`t own buildings so my expenses are lower than the 50% average.)
