Unexpected Property Management Costs

A rental property is a great way to generate consistent income. However, unplanned expenses associated with the rental property may reduce your profits. It is important for a property owner to be aware of these costs and plan for them in order to maintain positive cash flow.

Following are examples of unexpected costs that an owner may have to incur:

• Maintenance Costs: Maintenance is an intrinsic part of owning a rental property. Unpredictable expenses may crop up when you least expect it. However, budgeting for the same and ensuring that routine maintenance is done goes a long way in reducing surprises. A great way to manage unexpected maintenance costs is to contribute a part of monthly rent earned towards a maintenance fund for the property.
• Eviction Costs: There may be situations that require the property owners to issue an eviction notice. The eviction process has some costs associated with it. To prevent such costs, it is important to thoroughly screen potential tenants. Pay attention to their credit history and background when screening before signing the lease agreement.
• Pest Control: You should be prepared to act quickly if you discover a pest problem in your rental home. Even though you may conduct regular inspections to assess the need for pest control, you should set aside an amount for quick intervention in case of an infestation.
• Vacancy: Short gaps between move-outs and move-ins may lead to some vacancy costs. You can reduce vacancy costs by offering the rental at a reasonable price or by hiring a property management company for competitive property marketing to reduce vacancy period.
• Cleaning Fees: If your rental property is vacant and you are looking for potential tenants, cleaning costs may be an important consideration. To keep your property attractive, you may need to hire a cleaning expert. Cleaning fees is an important cost to take into consideration when budgeting for rental property expenses.
• Legal Fees: You may have to deal with legal or professional fees e.g., hiring a lawyer to help with eviction, filing a lawsuit for insurance claim, etc. Set aside an amount for unexpected legal fees that may be required to handle a legal situation.
• Taxes and other expenses: Rental properties are not exempt from taxes. Change in property taxes or property related fees like HOA fees, Insurance, etc. can lead to an unexpected hike in expenses. It is advisable to budget for taxes and other fees with the help of your property manager.

Hunter Rentals & Sales is a premier property management company in Killeen, TX and serves the Fort Hood areas of Killeen, Harker Heights, Copperas Cove and Belton. Our team is trained and experienced in helping property owners manage their rentals in the most cost-efficient way possible. To know more about property management costs, visit Hunter Rentals & Sales at 1503 W Stan Schlueter Loop, Killeen, TX - 76549. You can also browse through www.hunterrentals.com or call at (254) 634 - 3311.