We recently discussed how there are numerous benefits to home ownership, along with an article about the different maintenance costs you would have to incur with home ownership in Las Vegas. To consider whether home ownership or renting is more suited to your lifestyle, in this article we’re going to consider the typical maintenance costs of home renting.
Costs of Being a House Renter in Las Vegas
Let’s assume that you rented out a luxury real estate or luxury home in Las Vegas for residential purposes. The first and perhaps the most significant cost you need to consider is that of rent.
In Las Vegas, the typical rental expense is 0.8% to 1.1% of the home’s value. If the house you’re renting is valued at $1 million, your rental expense will be $8,000 to $11,000. If you are a home owner, you won’t have to deal with this expense.
Home Maintenance & Repair
These costs can go as high as 5% and be as low as 1% of the house’s value, i.e., $50,000 to $10,000. Normally, home owners don’t expect renters to pay maintenance costs or other related services, unless the contract states otherwise. It is important to clear this up with your real estate agent before you finalize the agreement.
If there are any maintenance charges set up by a resident’s committee, the tenant will have to bear those. HOA fees still remain the homeowner’s responsibility though.
This is an expense that can fall either on the home owner or tenant, depending on the reason behind this venture. If it is part of routine maintenance, home owners will have to pay for it. If, however, the tenant simply wants a different color or a new design, the cost will fall on the tenant.
Unless the damage is solely due to the actions of a tenant, this cost will be borne by the home owner.
Cleaning Costs & Day-to-Day
When it comes to house cleaning, pest control, or regular upkeep of the house that the tenant depreciated because of use, the tenant will have to bear these expenses. On average, cleaning costs in Las Vegas can amount to $80-$350 per month. Day-to-day upkeep depends on the tenant’s use of the property.
As a landlord, it is your responsibility to keep the surrounding of your property clean and safe. If an inspector stumbles upon your property and sees garbage being disposed around your property, you may be subject to a penalty.
As for within the property, landlords don’t have to cover the expense. In that case, this becomes a cleaning expense, which the renter will have to bear.
While most of these costs fall on the homeowner, it is important to mention that the maintenance costs are tax deductible for homeowners. The above comparison shows that a tenant is mostly responsible for paying rent and general upkeep of the house. In the short term, renting luxury real estate in Las Vegas may be a cost-effective venture, but the same cannot be said for the long run.
For more advice on whether you should buy or rent a home in Las Vegas, get in touch with us!
Disclaimer: There are numerous factors to consider in every investment, including real estate. The information provided above is just a matter of opinion and can change with time. It shouldn’t be construed as legal or tax advice; neither does the report constitute a financial promotion or investment advice. It is general information and before making any such decision, you should seek out licensed professionals and see all ends clearly.