Like many I recently started sorting through my 2011 taxes and I noticed a trend in almost all rental property expense categories.  Up in all categories are energy, water, sewer, trash, and insurance.  Luckily the payment is staying the same.  Now my personal situation is worse than some because I purchased at the height of the market properties that were slightly less than ideal.  Chock that up to learning.  We used to break even on a regular basis without too much trouble.  Now with prices climbing at this rate we are facing serious rent increases just to hit the bills.

I haven’t sat down to calculate percentages but if you have rentals keep and eye on your overhead.  I think that I’m going to have to change the way my lease is written to cover the utilities increases.  Otherwise the properties will eat themselves from the inside.

Trash has jumped faster than anything but I think that is largely related to fuel costs.


Comments are closed.