What are my monthly running costs after buying a rented property?
In today's edition of our video blog, you'll learn what monthly running costs you should consider.
Frequently, capital investors ask themselves:How much equity do I need when buying an owner-occupied property?
- What is included in the service charges of a property?
- What are real estate repair reserves?
- What is the cost of professional management?
- What are maintenance reserves in real estate?
- How much is the repayment?
- What is the composition of the ancillary costs?
- Do I need professional management for a rented property?
- Who prepares the service charge statement?
- Who takes care of leases?
We answer these and many other questions in our video blog editions.
Here is the transcript of episode 3 to read:
The question of the current monthlyen costs can be answered simply, because from your account in the case of a rented property will be monthly only three amounts are debited: Interest, repayment and the ancillary costs.
The ancillary costs include the part of the building charges that the tenant does not pay. Included in the service charges are, for example, the administration costs. So that you do not have to worry about anything, it is always advisable to hire a professional management, which costs about 15 EUR net per month. The administration prepares the service charge statement, takes care of a continuous rental of the property and can always be reached by the tenant if there are problems in the property itself.
Your tenant then also knows that he can call the administration at any time if something is wrong. So you don't have to worry about anything.
In addition, the service charges include ongoing repair costs and reserves for future maintenance.
Thus, the monthly debits from your account consist of these three main factors: interest and repayment, as well as the incidental costs as non-apportionable costs, which cover the management fees, reserves and ongoing maintenance.
On the other hand, there is the income, the rent and great tax advantages for you.
Real estate rental, monthly costs, interest, repayment, management, maintenance, service charges, tenant, service charge settlement, repair costs, reserves, mortgage, rental agreement, initial rental, new rental, debits from current account, deposit