Tip of the Month - February, 2020
Transfer of Costs
Source: Landlording-4th Edition-Leigh Robinson
Crossett Real Estate Services
When you rent out residences, you are furnishing tenants with more than a roof over their heads. You are providing certain services, services which cost you money. Some of these services, such as maintenance and repairs, you have to provide and pay for because laws require that you do. It does not mean you are required to provide maintenance and repairs when tenants are negligent or destructive. You may provide the service so work gets done promptly but you should not be paying as well.
When a tenant plugs a toilet or breaks a window, (punches holes in the wall, damages appliances, or the property) it is tenant responsibility. You did not plug the toilet, break the window, punch holes in the walls, or damage the property). No defect, no normal wear and tear caused the damage.
There are special circumstances, that is reasonable. Just do not pay every time. Transferring costs will definitely decrease your expenses. Ask yourself whether there are any other services which cost you money but which you are providing free of charge. You might get the tenants to pay for these services. (IF not included in the lease or rental terms).
(Tip from Crossett Real Estate)
Added rent: water and sewer fees: Tenant determines the cost and consumption. Rate of rent determined if appliances are included: (washer/dryer, microwave oven, stove, refrigerator.) Are lawn care and/or snow care included? Management services included?
This web page was updated on 02/03/2020.