The govt is deep in all of our pockets -> taxes go up.
Even with a 30 year fixed mortgage costs are not fixed, somehow these costs have to be passed along.
But rents are stable?
Sounds like I need to become a renter myself to lock in my housing expenses.
No wonder renters are all to happy to increase taxes on “the man.”[/quote]
Paramount. Look at this way..
The property either cash flows positive every month (before all the tax deduction benefits)
or
Your property has appreciated since the time of purchase, and your tenant is basically paying for your mortgage and maybe some more…
In either or (hopefully both) cases, you still come out ahead…
And if neither is the case, you probably should reconsider if that property really should be a rental property…
FWIW: rent prices have increased, and property prices have increased too… Whether you want to try to squeeze every last dollar out of your tenant is completely up to you..BUT, you also have to practically think about the opportunity cost of ticking off the tenant.
Remember your previous tenant? You mentioned at move out time, that tenant trashed your place, his/her pet peed all over your carpet,and you had to put in new carpet, repairs,etc…
Do you really want to go through that all over again, if this tenant moves out… over $100/month? Especially since your property is a SFH, which will need considerable cleaning up/repair each time a tenant moves out… (No, you’re not going to be able to deduct every possible expense out of your tenant’s deposit…)….
Your old tenant is probably not going to complain about a stained carpet, or a worn carpet, paint etc as much, since he/she is already use to it (and he/she was probably responsible for part of the wear and tear)..But someone moving in is completely different story…
Just suck up the extra $100..
If you want to look at it this way, that’s $1200/month you’re not going to have to pay income taxes on :)[/quote]
Good advice from flu and AN, IMO.
Paramount, if you’re running negative on this, it might be a good time for you to sell, especially if this doesn’t account for any maintenance, vacancies, tenant issues, etc. Ask the tenants if they’d be interested in buying it before you consult a realtor. You might be able to get this transaction done without having to pay any RE commissions.
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BTW, it’s not the govt that is raising your taxes, but your fellow taxpayers.
