Many real estate investors look at rental properties as an opportunity to make a handsome profit, but landlords face a slew of hefty expenses on a monthly basis. From appliance repair to pest control, maintenance costs form a key component of a property’s expenses. When these costs spin out of control, the bottom line suffers. While certain expenses are inevitable, there are certain cost-saving measures all property owners should learn to keep maintenance bills manageable.
BUDGETING FOR FUTURE REPAIRS
It may seem like common sense to budget for future repairs and maintenance issues, but many property owners mistakenly overlook this key component of running a successful real estate business. Without the resources available to handle issues that arise within the rental unit, bad situations can quickly turn to worse. This in turn results in larger maintenance bills down the road.
For example, if an appliance is outdated and inefficient, it often makes more sense to replace the product altogether, rather than paying for continual repairs. Landlords who fail to budget for new appliances may not have the funds available for these investments, however. To keep the outdated equipment functional, a handyman needs to purchase various repair parts and perform frequent maintenance on the appliance. Over the course of the appliance’s life, it may have proven cheaper to simply replace the unit when it started encountering problems.
RESPONDING TO MAINTENANCE CALLS
Tenants facing maintenance issues do not appreciate landlords who fail to resolve the problem quickly. From overflowing toilets to broken radiators, these problems affect the tenant’s quality of life. Not only does ignoring a pressing repair cause unnecessary stress for the renters, but poor management often encourages animosity and dissatisfaction among tenants. Even worse, problems tend to escalate quickly, causing extensive damage to the property. To keep this situation from unfolding, it’s essential to respond to repair requests as quickly as possible. This approach keeps customers happy, and it protects the rental property from additional damage that could otherwise occur.
ADDRESSING LEGAL REGULATIONS
Solving a tenant’s maintenance issue sometimes requires much more than a bit of elbow grease. Many jurisdictions mandate how a landlord must address repairs, and some states require extensive records documenting the work performed. Landlords who ignore these pivotal guidelines could find themselves facing steep fines and penalties. Taking the time to comply with the legal mandates in place helps keep the rental company on the right side of the law, while simultaneously protecting against future lawsuits brought by unhappy tenants.
Maintaining a rental property will always demand a certain investment of time and financial resources. As an apartment or rental home ages, maintenance calls increase and the appliances and features need to be replaced. Planning for the various stages ahead of a rental property helps keep maintenance costs to a minimum, while still respecting the state and federal guidelines in place. For many landlords, partnering with a property management group serves as the easiest solution for addressing regularly maintenance issues without breaking the bank.