Calculating HOA and Insurance Fees (New Construction)
Nov 12, 2021Topics Discussed:
- What to discuss with managers ahead of time
- Getting weekly/monthly quote from contractors
- Insurance bids on build-to-rent investments
Up to this point we've covered taxes. We did property management.
Now it gets kind of blurry. Do you have an HOA? If your property manager has an onsite manager and you've got payroll and so on and so forth, and you don't have some of these HOA costs, this is just moving numbers around.
If you had a manager that gave you a bid for shoveling snow, dicing, and landscaping, and everything like that. That's all in there and that stuff's probably a little bit easier to drill down because you can call a contractor. "Hey, what would you charge me for weekly mowing? What would you charge me for snow removal as needed?" And you can build into that.
Another one that can be kind of tricky is insurance.
Those guys are squirrels, right? You never know where they're going to end up on that kind of stuff. Because every summer, every winter there's a massive hurricane or a massive fire and the mail get skittish and, they raise the cost.
I think if you get an insurance bid on something, that's not going to get C of O for another 12 to 18 days. Move that up. That's gotta be higher than what they told you to today. Cause they're not going to honor that in 18 months.
Chase Leavitt: 2020 remember in March and Utah, all the crazy stuff was happening. And then we had a little mini earthquake. We were all nervous. And we didn't have earthquake insurance on our home.
You and I chat about this and yeah, got a good connection and went and got earthquake insurance. It was pretty high, but I mean, worth getting it, just to get that.
Steve Olson: The next person I told about that after you called me and said, they're not taking any more policies. When an insurance company gets 30 people calling them in one day wanting the same product, they get nervous.
Chase Leavitt: So we renewed the next year and it went up, but we still got it just to have that reassurance.
Steve Olson: Well, I'm in a new house. I should do that again.
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