I have a rental property that someone else was running for me, now I'm taking it back over. I know there should be money set aside each month to cover repairs - everything from small plumbing to bigger things like replacing the roof (when needed in xx years). How much $ should be set aside each month (i.e. what percentage is the norm) for such things?
2006-12-14 18:38:35 · 4 answers · asked by dexter 2 in Business & Finance ➔ Renting & Real Estate
I would first purchase a Home Warranty...like the above person mentioned, but then I would also set back at least 100-200 a month (depending on your mortgage payment) to cover a reapir that may not fall under the Home Warranty.
2006-12-15 02:33:43 · answer #1 · answered by GiGi 2 · 0⤊ 0⤋
Gosh babe, you must be the first landlord in history to think ahead like that. Good for you, but there is no norm. You should look at the expenses for repairs and maintenance for the last few years and see what the average is. Then I would suggest you pay for an inspection from a certified home inspector. They can tell you how much life is left in different elements of the structure....eg. hot water heaters, windows, roof, exterior finish etc. Its worth the money.
2006-12-14 18:44:43 · answer #2 · answered by WitchTwo 6 · 0⤊ 0⤋
I manage a lot of properties and the best advice I can give you is to buy a home warranty policy. For example, I pay around $400 a year and if something should break down, I pay a service call fee of $55 and they take care of it. Also, the home warranty is tax deductable.
Regards
2006-12-14 18:45:25 · answer #3 · answered by Anonymous · 1⤊ 0⤋
My granpaw told me %25 of net is set aside, I listened.
2006-12-14 18:47:00 · answer #4 · answered by Anonymous · 0⤊ 0⤋