To determine what expenses you must cover and what expenses the investor must cover, you need to consider that on the one hand you own part of the house, and on the other you’re enjoying the exclusive use of the house.
As a general rule, you’ll have to cover the following expenses:
- You’ll assume 100% of the home expenses, which any tenant would assume with a traditional rental.
- You’ll assume the pro rata expenses that a homeowner assumes in a traditional rental. That is, if you have acquired 5% of the house, you’ll have to pay 5% of the expenses that the owner pays in a traditional rental.
Examples of expenses paid by a tenant in a traditional rental are: utilities (electricity, gas, water, internet, telephone), payment of the rent-associated taxes, home maintenance, home and maintenance insurance, damage caused by you or your visits and small expenses derived from the house’s daily use.
Examples of expenses paid by an owner in a traditional rental are: community expenses, taxes (IBI, garbage fees, etc.), utility registration, facilities breakdowns and extraordinary allocations.