Hopefully you are better at keeping an eye on your rental’s expenses than I am. If I see a small increase, I don’t bother to chase down the reason behind it. I typically don’t sweat the small stuff.
But my cavalier attitude may also prevent me from seeing trends and opportunities. As we continue on with the $100 expense reduction challenge, I’d like to invite you to join me. Don’t make me do all the thinking!
As you go through your 2012 receipts and get everything ready for your accountant, take a look at your expenses in terms of percent of income.
Leave a comment and let me know if your percentages are similar to my own. You don’t need to tell me you personal business, just tell me the percentages. For example, if you spent $100 per month on electricity for your common areas and your theoretical income is $2,000 per month, then tell me your electricity is 5% of your gross income. Also, tell us what type of property it is: single-family home, 100-unit apartment complex, etc.
I’ll compile all of our information and publish the trends. This will help us identify our common issues and allow us to crowd source a solutions.
Will you do it? You’ve got to prepare your Schedule E anyway. Please leave a comment below and let us all know that you’re in! Thanks