Maintaining Your Rental Property
Even though flipping houses quickly for a considerable profit is the most glamorous side of real estate investment, those opportunities are few and far between. Far wiser is the slow and steady route, in which the competent investor purchases a property and holds it for several years while its value appreciates. For reasons we’ve discussed before, identifying areas with high growth potential and property value appreciation is important for any real estate investment, and that goes double for a long-term property hold.
Even so, location in all cases is only half the battle. Rising property values won’t help you nearly as much as an investor if no one wants your property to begin with, and the best way to maintain your rental’s value is to, well, maintain the property itself. We’ve talked before about quick, cheap fixes to rental properties when you’re attempting to find tenants, but there are several important maintenance tasks needed to keep up your property’s value while it’s being rented.
Flooring
Flooring is less of a continuing maintenance issue and more of a save-yourself-a-headache method. When you purchase a property with the intention of renting it out, installing hardwood flooring is always preferable to carpet. It’s more desirable, easier to clean and maintain (especially if you expect that tenants might have pets), and unlike carpet won’t require complete replacement every ten years or so. At the very least, when leasing to a new tenant you’d need to deep-clean the carpet each time, and after a while that can become tedious if not expensive. In any case, hardwood floors will appeal to both tenants and buyers alike, and anything that eases your burden as the owner and makes the property more appealing is a huge win. Take it from us: you’ll thank yourself over the long run for biting the bullet and putting in hardwood floors.
Landscaping
This one should be obvious, but landscaping is about more than just curb appeal. To be sure, you want to make sure the lawn or vegetation on the property is properly maintained for aesthetic reasons, but laying down sod or planting bushes or trees can help keep erosion at bay and save you money in the long run. If you’re trying to sell a property with an eroded front lawn, it’s going to cut down on your asking price and fixing it will take more time and money. Things like shrubbery can hold soil in place, especially if the property has a bit of an incline to it. Expect runoff; even if your property is reasonably flat you should always plan on erosion being an issue and act accordingly. Landscaping also extends to removing dead limbs from trees or cutting down dead trees entirely. Not only are falling limbs a potential liability if they were to fall on a person or a vehicle, they can also wreak havoc on a roof. In other words, tree removal may be expensive, but it’s a lot cheaper than a lawsuit or replacing a roof.
The Roof
Speaking of roofs, depending on how long you plan on holding your rental property you may consider replacing it shortly before selling, especially if you intend to hold it for most of the duration of a 30-year mortgage. Additionally, whether or not you should replace the roof sooner depends on its condition when you initially purchase the property. Regardless, you should check the roof every six months for hail damage, holes, or potential leaks which, if left unattended, could cause a great deal of damage at a considerable expense to you as the owner. Most homeowner’s insurance will cover roof repairs, so make sure you’re on top of that (no pun intended) when shopping for policies. The amount covered by insurance will depend on your individual policy, the location of the property, and the frequency with which the area experiences storms. Also, don’t forget to clean the gutters every few months to keep them and your roof in shape. Buildup in the gutters can cause standing water buildups, mold, and moisture damage which can extend to the roof as well. Be sure to add extenders to the downspouts as well so water doesn’t empty near the foundation of the house.
HVAC
It should go without saying that the filters for the property’s HVAC unit need to be replaced each month, and that responsibility should be on the tenant. Be sure to check on them and remind them to do so, and each year the ducts should be thoroughly cleaned. Both of these things will extend the life of the unit, and thus help maintain the value of the property because no one wants to live in a home with spotty air conditioning or heat. Clogged ducts can also lead to higher utility bills, and no tenant will want to put up with that. You’ll also want to ensure that no vegetation is blocking the airflow on the outdoor unit, which again can shorten the life of the unit by forcing it to work harder and use more power.
Windows and Weatherproofing
If you find a good deal on a property that’s older, you’ll probably want to install storm windows. Not only are these more resistant to break-ins, they’ll help insulate the house as well in addition to preventing storm damage. It’s a huge plus for most tenants (and buyers as well, for that matter) to see storm windows because they’ll know they’ll be able to save on heating and air costs. You’ll also want to make sure the sealants around doors, windows, and any other openings to the house are in good order for the same reason, and it’ll also help cut down on pests getting in.
Electricity
Finally, if the house has ground fault circuit interrupters (GFCI outlets), these need to be tripped and reset about once a month or they may not work properly. Like changing air filters, this should be a tenant responsibility and it’s fairly easy to instruct them as to how to do it.
Properties are like cars: the better they’re maintained, the longer they last. However, a vehicle, unlike a property, is unlikely to retain its original value and certainly won’t appreciate with use or time. A properly maintained home will not only retain its value over time, but may even increase in value if you did your homework as an investor and purchased a home in a high-growth area. Real estate investment is about having a goal and a plan to reach it, and purchasing the property itself is but one part of that overall plan. The work doesn’t stop once the deed has been signed; if you’re renting your property, the work of maintaining it and sticking to the plan, preparing for the eventual sale of the home, begins. Be sure to check back with us each week for more tips on the art of real estate investment, and don’t forget to follow us on Facebook and Twitter!
– Get It Right Solutions LLC