Maintenance Repairs are Eating Your Profits
Owning a rental property can have a large number of benefits – as long as you are prepared to handle the maintenance repairs that come your way. Perhaps you have invested your money wisely, planning for routine repairs, taxes, insurance, and other regular expenses you expect to occur. But what happens when the cost of your maintenance repairs keeps increasing? Soon, you will find that your repair bill is eating your profits.
There has to be a better way. And, there is. Believe it or not, you can keep the cost of your maintenance repairs down. Here’s how:
Take steps to keep your property in healthy, working order before a repair is needed. Create for yourself a seasonal routine to check the health status of your property. Perform necessary routine cleaning or maintenance on the cooling and heating system, clean gutters, inspect the exterior of the home, trim overgrown trees, etc.
Each one of these steps will reduce the chance of a major repair occurring – eating a chunk of your profits.
Choose your tenants wisely.
If you rent to careless tenants, you may find that your repair bills will skyrocket – either during or after their tenancy. Do your homework when choosing to rent your property. A thorough check, such as credit, background, and previous rental history can give you an idea of the type of person you are dealing with.
The more responsible your tenants appear in their screening, the more responsible you may find they are with your property.
Leave it to professionals.
You may be a great investor, but that does not mean you are a great maintenance person. By trying your hand at repairs – thanks to YouTube videos and the like – you may actually be doing more damage than good. Save yourself some time and money and leave the repairs to the professionals.
Hire a property manager.
Property management companies can ease the burden of maintaining rental properties. They can help you find responsible tenants and handle any and all repairs that come your way. Property management companies have a staff or a network of experts that can handle your repairs as they happen and perform routine, proactive maintenance service if needed.
Set aside money for repairs. It is inevitable – the need for them will occur. If you aren’t prepared, this could dig a deep hole in your pockets. If you don’t need to tap into much of this money, great. But that doesn’t mean spend it. Continuously put it aside so when an emergency happens – or a costly repair is needed – you won’t have to dip into your own pocket to cover the cost. You have budgeted for it.
If you own a rental property, maintenance repairs are going to be required. Take steps to protect yourself so that you will not be left without any profit.
Marina Shlomov, a managing partner atALH|Podland Realty & Rental Homes Property Management is the author of many articles on Landlording, Property Management, and Real Estate Investing. A residential builder in the state of Georgia since 1999, Marina is an investor herself. Her property management company is intended “For Investors” and “By Investors” for a simple reason – she knows what investors’ goals are and she works hard to reach their goals. In her spare time, Marina likes to spend time with her family, friends, garden, read and travel. Check her out at www.alhpodland.com. You can find Marina’s articles and comments at @rentalhomesatl on Twitter, on Facebook, Google+, Blogger. and YouTube,Bigger Pockets andREI Club andLinkedIn.