Tell us about your expenses

[Dan D.]

I have a single family rental right now.

Vacancy adjusted, I bring in $21,000 a year in rent.

My annual expenses are:

Property tax: $3200

Insurance $900

Washing machine $500

Plumbing repair $250

Irrigation turn on and turn off (I do myself, but otherwise it would be about $150.

Total $5,000

[J Scott]

Do you ever have turn-over?  Don't you ever have to paint and clean the carpets?  What about utilities during vacant periods -- do you turn them off?

How about capital expenses?  While you may not have a capital expense this year, eventually you will, and that cost should be amortized over the expected life of that capital improvement.  For example, if you replace a roof every 20 years and it costs $5000 for a new roof, that's an average of $250/year.  Same with your HVAC, water heater, electrical system, plumbing system, windows, doors, etc.

You live in Minnesota...who pays for snow removal on your property?  If you're letting your tenants take care of it, what if they don't do it, someone slips and falls and sues you?  I'd suggest either putting snow removal into your costs or adding in the cost of liability insurance (though it may not protect you in this particular situation).

Lastly, I'm guessing you do property management yourself.  Is your time worth anything?  Do you factor that in?  If not, why not?