How do you know if you are being SUCCESSFUL at managing your rental properties?



There are 4 key measures to determine if you are being "financially successful" at managing your rental property:
  1. Cash flow
  2. Profitability
  3. Benefits to your annual income taxes
  4. Property appreciation 
Ideally, your rental income will at least equal (or preferably exceed) your expenses.  Your expenses will include: landlord paid utilities (if any, like water, trash, etc.), mortgage payments, HOA dues (if not paid by tenant), property insurance, property taxes, maintenance/handyman, advertising, legal fees, tax preparation fees, supplies, etc.  In general, the higher your cash flow, the better -- even if you do have to pay taxes on it.  And the more your property appreciates in value, the better!


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Posted by Mike Levy at 12/3/2008 6:44 PM
Categories: 05-Landlord Tips
 

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