There’s no denying that real estate is expensive to buy, especially when you have all the surrounding fees and taxes you need to pay before and after the transaction, but once you’ve finally paid everything off and it’s finally yours, are there still fees you’ll need to pay that you don’t already know about?
Today, we’re going to explore if there are any of these hidden fees, helping you to stay in the know with regards to what you can expect, and ensuring you don’t get caught out with any hidden costs as a landlord.
If you ever need to get your property valued, whether that’s to remortgage the property or to sell it, the mortgage lender will charge a fee to carry out this process. This can range anywhere from $150 up to $1,500, depending on which service you’re using.
Whether you’re simply owning your real estate for yourself or renting it out to a tenant, there are always going to be legal fees. If you’re dealing with contracts, trying to get some kind of planning permission, or you’re trying to make a change to the property, you’re going to need to pay to get your applications through and your documents up to date.
Any searches you carry out on the property may also incur a fee. Of course, the price of passing these can differ dramatically depending on what the process is, so you’ll need to make sure you’re checking to get an accurate price.
Maintaining Your Property
Property management fees are always going to be one of the key costs and fees you’ll need to look out for, but this is a broad topic with a lot of different sub-sections. From building repairs and upgrades to rental management programs, none of this is free, which is why you’ll need to think about what you’re doing, how much money you have, and what you plan to do in the future.
Whether you’re paying for repairs or covering yourself against specific situations, it’s a legal requirement in most parts of the world to have insurance. These are essential fees if you don’t want to get caught out in the future, but can either be paid on a monthly or yearly term, depending on the individual criteria of your preferred plan.
Of course, there’s no denying you’re going to need to pay the bills of your property. From gas and electricity to television fees, taxes, and water, there are always going to be bills to pay depending on which resources you use and how much of them you have.
Marketing to Tenants
As a landlord, your main aim is to get people into your property, which means people looking for properties need to find you. For this, you’re going to need to do some marketing, whether that’s buying ad space on social media, or placing your property on a listing site; both of which are going to cost you a small fee.
As you can see, there are lots of potential costs and fees you’ll need to be aware of when it comes to owning real estate. Make sure you’re mindful of these costs and how they affect you to ensure your budget is well-managed, and you don’t find yourself coming across unnecessary financial difficulties.