The costs of investing in and owning a rental property can vary depending on a number of factors, such as the location and condition of the property, the local real estate market, and the type of rental property you choose to invest in. Some of the common costs associated with owning a rental property include:
Purchase price: The cost of purchasing the property, which can include the purchase price, closing costs, and any necessary renovations or repairs.
Financing costs: The cost of borrowing money to finance the purchase of the property, which can include mortgage interest, points, and fees.
Property taxes: The taxes that are levied on the property by local governments.
Insurance: The cost of insuring the property against damage or loss, which can include liability insurance, property insurance, and flood insurance (if necessary).
Maintenance and repairs: The cost of maintaining and repairing the property, including regular upkeep and unexpected repairs.
Management fees: The cost of hiring a property manager to handle the day-to-day management of the property, including finding tenants, collecting rent, and handling maintenance and repairs.
Vacancy costs: The cost of lost income when the property is not rented out, which can include the cost of utilities, taxes, and insurance.
Overall, the costs of owning a rental property can add up, so it's important to carefully consider all of the potential expenses before making the decision to invest in a rental property.
You can get in touch with me for any assistance or advice about buying or selling a home in Greater Boston. Feel free to call me or send me an email or get in touch on Facebook.
For more great tips and local information about Boston and the South Shore, sign up for my monthly newsletter. I promise I won’t spam you.