Purchasing properties to rent is a common alternative income strategy for those that want out of the standard rat race. On the surface it seems simple – buy a property, rent it for more than your expenses, and bring in easy money. The truth is that in practice there are usually quite a few more complications, and allowing a maintenance issue to go unchecked can cost you thousands of dollars. Knowing how to avoid the following property maintenance mistakes can help make your rental business easier.
#1: Putting off maintenance tasks
You may be tempted to put off a seemingly minor maintenance task, such as securing loose carpeting or trimming a storm-damaged tree. Unfortunately, this can come back to bite you in one of two ways. First, small damage has a tendency to become greater over time. This means a carpet issue that could have been fixed can eventually result in the need for expensive new carpeting. The second problem is that your tenants can use ignored maintenance against you. If they are injured, such as tripping on the carpet or from a falling tree branch, you can be held financially responsible. They may even be able to use the evidence of failure to maintain to legally withhold the rent or break the lease.
#2: Skipping property inspections
Your tenants send in their rent check on time and they seem like nice people, so you just sit back and enjoy the extra cash flow while it lasts. This may sound like an ideal situation, but it can quickly go bad. If you aren't at least checking on the property occasionally all sorts of damage or misuse could occur – and you won't know until the tenants move out. When and how often you can inspect your property depends on your state's landlord tenant laws. Generally, you will have to give some notice and the tenant may need to be present during the inspection.
#3: Doing it yourself
If you have some minor repair skills it may seem like a cost-savings to do things yourself. This may range from mowing the lawn to minor electrical repairs. There are some reasons you may want to reconsider, though. First and foremost, maintenance will take up a lot of your time. Second, you won't have the benefit of contractor warranties on the work. You may also be tempted to allow tenants to do the work in exchange to savings on rent. Of course, you will have no way to verify the quality of the work and you still won't have a warranty on it.
If this all seems overwhelming, hire a property management company, such as Noreast Property Management Corporation. They will take over the maintenance responsibilities, which can save you both time and money in the long run.
