Maintenance Allowance – Another critical contingency to build into your <s
trong>rental property investment analysis</strong>.This fund will cover the plum
ber in the middle of the night,new paint when changing tenants, and any other un
foreseen property maintenance expenses that may occur throughout the year.This c
ost is often determined by the age and condition of the property as well as the
capabilities of your tenants.As a rule of thumb, you may want to consider settin
g aside 4% - 8% of the monthly rent as a Maintenance Allowance contingency fund.
Advertising – You will need to advertise your apartment to potential tenan
ts.The cost here will depend on your tenant turnover and your advertising medium
.</p><p>
Property Management – You may contract with professional property manageme
nt company to manage the property for you (place tenants,collect rent,manage mai
ntenance issues,etc). These companies often charge a percentage of rent ranging
from 6% to 12%. It is very important to research these companies ahead of time
. If you choose to manage the property yourself,you may save yourself this cost
, but don’t forget that your time is valuable too.</p><p>
Vacancy Allowance – When performing their <strong><a href="http://www.veru
sdecisions.com/real-estate-investment-analyzers.aspx">rental property investment
analysis</a></strong> many people choose to ignore this critical factor.No matt
er how popular your property,there’s a good chance you will not have tenan
ts every single month for as long as you own the property.A best practice is to
budget for a vacancy contingency fund.This cash will sit in a separate bank acco
unt ready to cover any short term tenant vacancies.A good rule of thumb is to do
uble the vacancy rate for comparable properties in that area and apply that as a
percentage of rent.(i.e. If the Vacancy Rate in your area is 2% and you collect
$1000 in rent each month,take $40 cash each month and place it in the Vacancy A
llowance Fund.</p>
<strong>Rental property investment analysis</strong>,to find <strong>positive re
ntal property cash flow</strong>,requires you consider many factors.Using a simp
le yet comprehensive <strong>real-estate investment calculator</strong> will not
only allow you to quickly and easily determine if your potential investment wil
l produce <strong>positive cash flow</strong>,but help you project the return on
investment of your rental property and achieve your financial goals sooner.You
can find this and other <strong>real-estate calculators</strong> at <a href="htt
p://www.verusdecisions.com/">www.verusdecisions.com</a>