L/O Terms
I am in the process of finalizing a L/O with a tenant. I want the tenant to pay for all utilties (including water, sewer, trash) but plan to verify the utilities are paid regularly. However, I want the tenant to also pay for repairs & maintenance. What happens if the furnace dies? Or another major repair needs done? Should I put language in the L/O that I will pay any repair over $X amount? If yes, what is a valid amount? One investor recommended $1000.
Thoughts?
If you can get the tenant buyer to pay for all repairs up to $1,000 then go for it... This might be a tough sell for the most part, though... I hear investors go with an amount between $250 - $500.
Good Luck!
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L/OKing,
I was hoping you would reply as I knew you would have interesting insight. Great idea. I also like the idea of no limit. Of course, if something serious happens, I could negotiate at that time.
Any idea how much Home Warranties are per month?
Thanks again for your help.
They run around $300 a year. If I had a Seller on a really nice home hesitant to sign with me, I might even get one myself to assure the Seller.
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If you give the T/B a customary $200 limit, they will shop around until they get a bid/estimate that exceeds that.
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