RentLife Property Management

Written by Mark Kallus, Owner & Broker

RentLife® Property Management
MPM® | RMP® | TRPM® | TRLS®

Houston’s Local Property Management Experts

How to Create a Budget For Your Rental Property?

How to Create a Budget For Your Rental Property?

 

  1. Identify your income: Your expected rental income, including the rent amount and any additional income from parking or storage fees.
  2. Identify your expenses: Identify your expenses, including mortgage payments, property taxes, insurance, utilities, maintenance, and repair costs.
  3. Identify your reserves: Identity how much you need to set aside for reserves, such as for future repairs or vacancy costs.
  4. Create a spreadsheet: Create a spreadsheet that includes all your income and expenses and your reserves. This will help you see where your money is going and where you may need adjustments.
  5. Factor in vacancy costs: Factor in vacancy costs, such as advertising and cleaning expenses, in case the property is vacant for some time.
  6. Consider unexpected expenses: Consider unexpected expenses, such as major repairs or natural disasters, and set aside money if these events occur.
  7. Review your budget regularly: Review your budget regularly to ensure that you are on track and make adjustments as necessary.
  8. Set a cash flow: Set a cash flow, which means the amount of money you have coming in and going out, and it will help you to decide if you have the funds to make any upgrades or repairs.
  9. Take advantage of tax deductions: Take advantage of any tax deductions for rental property expenses, such as mortgage interest, depreciation, and repairs.
  10. Keep records: Keep accurate records of your income and expenses, and retain all receipts and invoices for at least the statute of limitations in your state.

 

We are the one you want if you are looking for a Spring Property Management Company! RentLife® Property Management CRMC® is the best choice for property management in Cypress, TX. We also offer rentals and property management in Humble, Katy, Spring, The Woodlands, Tomball, Conroe, Houston, Magnolia, and other surrounding areas. Contact us today at www.rentlifepm.com or call 832-562-3600.