When you get started laying out the typical fees for managing a property, some potential investors may shudder at the idea. If they did not contemplate rental property maintenance as a part of the price of doing business from the rental market, it might take the stars out of their own eyes.
However, there are other potential investors that think that there are a whole lot of shortcuts to take advantage of. Make certain that you’re aware of these common myths before investing.
DIY SAVES MONEY
While taking repairs into your own hands will certainly eliminate the expenses of labor, there are other issues to consider. It is a smart way to save a few bucks with rental properties, which need constant tending, but you shouldn’t go out of your comfort zone. Understanding the balance between your abilities and what you can learn on the fly takes some time.
Thankfully, there are plenty of online resources for anyone wanting to make a repair. However, with rental properties, you want to make repairs that can withstand wear and tear. The job you do needs to be strong enough to take the pressure of being handled by unconcerned renters.
Just like doing work on your car, it’s smart to leave major repairs to the pros. You can change lightbulbs, install decoration, or even handle painting by yourself. However, as soon as your building is at stake with an electrical or plumbing issue, prioritize quality over cost.
Saving money can lead to greater losses if the job you do isn’t comprehensive. Understand when saving on a single financial issue could lead you to spend more with another.
LEAVING TENANTS TO HANDLE MAINTENANCE
The very best way to make certain that your repairs don’t get dealt with in the manner they want to is to leave it up for your tenants. When some items like light bulbs and small paint jobs can be handled by tenants, leaving it up to them is just as bad as taking on something that you can’t handle.
Ultimately, your tenant doesn’t have the property and will find a solution that allows them to make do. They won’t come up with a solution that’s meant to last for years after they’re gone.
Some tenants really put love and care into each place that they dwell but you don’t want to roll the dice. Assume they aren’t and should not be responsible. Unless they’ve busted a window on their own or intentionally busted something, the repairs are in your courtroom.
Major appliances such as refrigerators or HVAC systems need to be handled from the proprietor. In most cities, it is written into law. Generally, it is a good idea to make certain that you purchase items that will last for years ahead and withstand the wear and tear that renters wear them.
Make sure that you take care of the outside of your rental property as well. This sends a message to tenants that you care about the property and will make them feel bad if they leave a wreck or trash untended.
DON’T REPAIR EVERYTHING
While plenty of money can be saved in repairing some things instead of replacing them, there are some instances where that doesn’t work. While an old refrigerator could be repaired for a small bit of money, it may be more rewarding to replace it.
One of the major reasons for that is energy efficiency. Many older appliances wasted electricity more than contemporary appliances.
As you may not be footing the bill for the electric usage, you still have an infrastructure that the appliance functions on.
Getting energy-efficient appliances guarantees that you’re not putting too much strain in your breakers and that you won’t be replacing fuses often. If you use these appliances, you also limit the chances for an outage that can irritate neighbors to your tenant. There are also tax incentives for replacing appliances.
SECURITY DEPOSITS DON’T COVER EVERYTHING
While you might believe that you can use a safety deposit to pay for the costs that you pay out for repairs and replacement, you have to be aware of the rules. Every town and state has strict laws in regards to tenants and landlords and the way that security deposits are managed. Laws are made to protect property owners while others are meant to ensure tenants get their deposits back.
Some landlords ask for security depots that are equal to a month’s rent. However, that doesn’t mean that they take the place for the last month’s rent. Remind tenants that they are expected to pay that in full before they can get their deposit back.
It also ensures that you have some collateral if there is any damage done following a transfer.
Security deposits are not meant to pay for the normal wear and tear that occurs from a renter. That’s a price that’s swallowed by the property owner. That means that cleaning expenditures, painting, and other small issues that are meant to make a home ready for the next tenants don’t come out of the safety deposit.
There often needs to be proof that severe damage was caused by the tenant and this may even land the two parties in court if not handled properly.
RENTAL PROPERTY MAINTENANCE IS VITAL TO GOOD RELATIONSHIPS
If you want to have strong relationships with your tenants, then you have to prioritize rental property maintenance. When it comes time to renew leases or raise the rent, these are the matters that they’re going to think about that impact their decision.