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Diving into rentals as a property owner can be an exciting investment. Most spend money at the beginning to get the property into perfect condition to catch the eye of renters. Once those renters are in, you can breathe a little as things start to settle, until you start to get the maintenance calls. These can be frustrating at the beginning because they seem to come out of nowhere. How can you prepare so that when these phone calls come, you are ready? How can you take the surprise out of maintenance?
Every house has upkeep to maintain the property in a good, healthy condition. Preparing a budget can make maintenance calls less daunting. If you don’t know where to start, experts say that a home, on average, will need up to 1-4% of what the house costs in maintenance every year. Putting that aside at the beginning of the year can ease your mind and make it so you are never in a tight position when you need to get something done on the house.
The better you keep your property’s condition while a tenant is in place, the less you should have to do when transitioning into new tenants. Spread it out, try not to tackle everything at once. Getting a maintenance call from a tenant can be a positive; it can mean that they are also looking out for your property, wanting the best for your house. This can also be the determining factor in whether a tenant stays in the unit. If you have a good tenant, the hope is to keep them for as long as possible. It becomes expensive and time-consuming when you have to put your home back on the rental market. There is no guarantee that you will find someone to fill your home. Although too many maintenance calls can also indicate a need to inspect the house and make sure it's being treated properly. This is a good indicator of how to move forward in the future with your tenants.
All things have a lifetime. A carpet’s life is around 5 years, while a roof's lifetime can be 15-30 years. Tracking the lifetime of the home can help you through the years. A basic budget could be 1% but at the same time, if there are big ticket items whose lifetime is coming to an end, you may want to factor that into your budget. In the 4th year of your carpet, you can bring up the budget to be closer to the 4% suggested, so that the following year, you will already know that you need to look at the carpet. Unfortunately, amenities within the home don’t always follow their life span. Some things can go way past their time, and others can die out before they are meant to. The savings plan and tracking can help bridge the gap and alleviate any surprises.
Not all maintenance is bad; it can be a warning sign for upcoming issues or can simply be a perfectly timed upkeep of your home. Rentals are a great investment when treated with a plan. If you are prepared, then there is more time to sit back and enjoy the ability to become lucrative in this business.
Figuring out where to start when it comes to preventative maintenance can be an overwhelming task. At Hero Property Management, we understand the value of gradual house upkeep to prevent future problems. Reach out today for a consultation for things you can do to increase the value of your home at 801-845-4390.