Question Details

Bourdin, Home Buyer in La France, SC

How do you in USA calculate the amount of the expenses on a rental house ? Taxes - Heat? - Water? -

Asked by Bourdin, La France, SC Fri May 9, 2008

Management - Insurance - Repairs - Vacancy - others.
Is it correct to say they cost around 25% of the rent income ? In France it is my cost on my real estate properties. It should be very the same in USA ? For the vacancy, I have 3% vacant. Is it similar in USA ?

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In Hawai'i, very low vacancy rates due to too little housing and great demand. Usually the homeowner's association dues (in a condo complex) will cover the basic maintenance. In this complex, the HOA pays for all pool and spa upkeep, 24/7 security plus security gate, gardening, basic cable, water, trash pickup, exterminator, and all exterior maintenance. If you choose to hire a management service to collect the rent, the usual charge is 10% of the rent for long-term leases, or 20% for vacation rentals. But with all the security here plus the strict rules with rental applications, I've never had to hire a management service to collect the rent. Renters here are too grateful to have a place to live and are sure to pay their rent on time for fear of eviction. There are not enough available rentals here. Hope this helps? If you'd like a flyer for this area, please email Eire02@aol.com
0 votes Thank Flag Link Fri May 23, 2008
Vacancy rates will differ depending on the market conditions. I think you will find vast differences across the country. As for the expenses, a general rule of thumb in Rutherford County, NC, is approx 25% - 30%, when estimating expenses I usually advise counting it as high as 33% prior to investment for the first year. This is based on the fact you may have unanticipated expenses such as repairs or additions to improve "rentability". At present we have 26% of the county population living in rental properties. I hope this will help, at least to some degree. If I can assist you further, feel free to contact me.
Web Reference: http://www.cb650west.com
0 votes Thank Flag Link Sat May 10, 2008
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