Pass Through Your Fayetteville, NC Rental Property Taxes

Property Manager with Linchpin Property Management C31560

As a rental property investor in Fayetteville, NC, we are sure you have encountered many challenges. A great deal of these, quite possibly, could have involved some sort of financial impact on your investment property.


As we are sure you have come to realize, property investment can be an expensive ordeal. You probaby entered the investor world with thoughts of hitting it rich, only to find out that it takes more work than you imagined.


One of the key considerations for any investment property owner in Fayetteville, NC are property taxes. While everything else may flucutate and change, one thing remains certain, after death, there are taxes.


The question you may have asked yourself is how do I decrease the amount of investment property taxes I pay?


This article isn't about tax advice per se, but it is designed to provide you with an alternative many investors don't consider.


Have you ever thought about passing on the tax burden to your tenants for your house for rent in Fayetteville, NC?


Wait! We know what you are thinking. A tenant won't ever pay my tax bill. This isn't true, and here is how you go about doing it.


The Triple N Costs in Residential Property Management.


Commericial leases typically have what is called a Triple Net Lease, or a NNN for short. What this means is that the tenant is actually sharing in the payment of property taxes, repairs, or other builidng expenses. The burden is not completely on the landlord.


In rental property management, this isn't as common.  In fact, you probably won't see them at all. 


Well at lease above ground it isn't. In fact, if a tenant was to see that they are responsible for paying taxes on a property, they would probably run away.


But why would you pay the taxes, when the tenant is the one enjoying the use of the property?


Doesn't seem fair does it?


How to Pass On Taxes to Tenants in Your Fayetteville, NC House for Rent.


Passing on the tax burden isn't as scary as it seems. It just involves thinking creatively outside the box.


As a property investor, you can pass the cost of property taxes, and other expenses, to your tenant by building them into the lease.


But before you do that, there is a right way and a wrong way to do it. The wrong way is to include a line item in the lease that says:


"Tenant is responsible for paying $200 per month in property taxes."


The right way is to build the cost into the monthly lease rate. You don't need a line item.


We know what you are thinking. "But I don't know what the end of the year taxes are going to be!"


Yes, that't true. But you can use the previous year as a benchmark for your calculation.


Even if the amount of taxes goes up, you still are recouping the vast majority of the lost income. You can't hit the number 100%, but at least you aren't stuck with the entire bill.


Protect Your Bottom Line


At the end of the day, as an investor in Fayetteville, NC, your goal is to protect your bottom line. This can be do creatively, as long as you think outside the box.


If you have any questions about how to manage your rental property in Fayetteville, NC more effectively, don't hesitate to contact us.


We are here to help.


The Team at Linchpin Property Management.




By the way.  Share if you think it's relevant.  Sharing helps out us small property management companies grow big and strong.  Kind of like sharing your last bite of your meal with your kids. 





P.S. We love to network.  Send us a message, give us a call ,or stop on by if you are in the Fayetteville area. 


The coffee is on us. 


Linchpin Property Management

2529 Raeford Rd. Unit C-7

Fayetteville, NC 28305

(910) 236-9844


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Comments (1)

Jeffrey Richman
Immediate Home Solutions - Waxhaw, NC
Creative Real Estate Specialist

This is sage advice and I will be in touch with you.  Thanks for the information

Nov 02, 2020 06:17 AM
Larris Hutton

Thanks Jeff.  

Nov 02, 2020 08:56 AM