Rental registration fees

[Kyle Hilliard]

Hi Everyone, 

My wife and I are looking to buy a small multi family property to house hack in the next few months. We currently own a SFH in Meridian Township, MI (right next to East Lansing), and are trying to decide what to do with it when we move into the house hack. Our first choice would be to rent it out. The township charges an $800 initial rental registration fee, and then every year a $120 renewal fee and a $100 inspection fee. These fees seem higher than others that I've seen on BP. Do you guys think I should go ahead with renting it out? Is it just a matter of factoring these expenses into the analysis and seeing what the monthly cash flow is like?

Thanks for your help!

[Brandon Rush]

Hey Kyle,

Just factor it into the numbers. The $800 fee is no big deal, it will mean nothing when you eventually pay it off. As for the renewal and inspection fees, its just the cost of business. When you think about it, its only $18 a month, nothing to worry about. Just run you numbers and if you are satisfied with what the property will bring in after expenses or if it will meet your long term goals, keep it and rent it. 

Great decision on the house hack!