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Things like property taxes and maintenance are fixed costs for property owners. Those can eat up 50% or more of the rental income. So if renters aren't paying,
by viscanti 6y ago
Things like property taxes and maintenance are fixed costs for property owners. Those can eat up 50% or more of the rental income. So if renters aren't paying, even property owners who don't have a mortgage have high fixed costs that they have to pay.
- Ididntdothis 6y agoThe companies that are renting their space also have fixed costs.
- viscanti 6y agoGenerally their biggest fixed cost is rent, which most didn't pay.
- Ididntdothis 6y agoThat’s very doubtable. I would guess biggest cost is salaries.
- masnaox 6y agomaintenance and tax would NEVER get close to 50pct of the rent, let alone more.
- viscanti 6y agoYou're entitled to your opinions. But the 50 percent rule is pretty established by real estate investors as a way to estimate those fixed costs. https://www.biggerpockets.com/member-blogs/7172/46252-what-is-the-50-rule https://www.biggerpockets.com/member-blogs/7172/46252-what-i...