New investor question on first rental unit

[David L Miller]

Hey Everyone,

I just purchased and close in late August on my first rental in a suburb of Allentown, PA and have a few questions if anyone is willing to give their input. Overview: SFH 3BR 1.1BA, 14x20 unfinished attic with staircase (peak is about 6'-6.5', nice yard and parking for 3 cars in the back, it has a 8x10 storage shed and an outhouse looking shed on property. Oil for heat and window a/c. Plan on renting with tenant paying all utilities. Purchased at $145k, Appraisal $148k. Used a Heloc on my primary residence for DP and light rehab <$3k. Target rent $1500-1650

Oil tank has 1/4 in it to start.  How do you normally charge back oil and should I fill it to start tenant off?

Property has a lawn to upkeep.  Do you purchase a mower for tenant even though they are responsible to maintaining lawncare?

Window a/c: Do I purchase window a/c for tenant and then they maintain or let them provide?

Tenant will be paying all utilities and after talking with the borough the water, sewer and trash bill will be approximately $125/month.  How do you charge the tenant this on top of mortgage?  Do I charge a utilities fee monthly?

Attic: what do I do with this? It's a big enough area to finish the room ($5k-$6k) but ceiling height isn't high enough to make it a legal bedroom. Do I just leave it go and let tenant use as storage or finish the room and reappraise the house in the future to pull some of my HELOC money out?

Lastly, the yard has a nice 8x10 fairly new storage shed on it.  Is anyone charging additional rent for this as storage ($25-50/month)?

Thank you!

[Jonathan Greene]

Is the oil tank above or below ground? I would fill it to start them off and then let them take over after that. If tenant is responsible for lawn care (not a good idea in my opinion), they can figure it out, but I highly recommend doing lawn care as the owner. Window AC is up to you. If you close in August and lease for September 1, you might not even need them and can leave to tenant for next Spring. If tenant is paying all utilities you would just add that on, but they need to know that or just add to rent 125/month and say it's included, which feels better, but also makes it look like higher rent. I would not play with the attic because it would take a lot for you to earn that rehab amount back since it doesn't add a ton of value to a rental that is already a 3, 1.1. I would not charge for an existing shed in the backyard.