How to Include Property Tax in the Lease Payment
- 1). Check your mortgage statement to see if taxes are included in your payment. Your payment may cover principal, interest, insurance and property taxes. If there is no mortgage on your property, retrieve your most recent tax statement. In the lease amount you have agreed to with your new tenants, make certain that the amount is sufficient to cover the market rents which should include your taxes.
- 2). Calculate the yearly taxes to see what the monthly add on to the lease amount needs to be. For example, assume your yearly taxes are $2,400 and divide that by 12 months which equals $200 per month -- that should be included in the lease amount. If your base monthly rent was $800 per month, increase rent to $1,000 to cover property taxes.
- 3). Advertise the rental property at $1,000 per month so your new potential tenant will be expecting a $1,000 monthly lease payment. Use this figure in the new lease when writing up the lease agreement.
