Most property owners renting a house in Loveland to tenants recognize that taking good care of their property should be a top priority, especially in today's competitive rental market. However, many landlords underestimate just how much work goes into keeping their investment in tip-top shape. Taking care of a rental property means regular repair and upkeep, appliance replacement, landscaping, pest control, and all of the other necessary—but often neglected—aspects of owning a property.
With busy schedules, lack of resources, and (let's be honest) a lack of motivation, properly caring for your rental property can prove too much for most landlords. As a result, many opt to partner with a qualified property management firm to oversee the care, maintenance, and occupancy of their rental. Whether you work with property managers or oversee properties on your own, here are six reasons why it's essential to pay proper attention to your investments:
Happy renters are key to a successful rental real estate business. When renters feel they're being taken care of, they spread positive reviews via word of mouth, social media and online forums. Having satisfied tenants who vouch for the quality of your property and your business is especially important if you own more than one rental property, and there's the potential for referrals. Having a well-maintained property will help you create that positive reputation.
Also, tenants will go above and beyond to care for their rental if their unit and the property are well cared for. If utilities are regularly broken, kitchens and bathrooms dated, or landscaping overgrown, tenants will not only leave poor reviews, but there also will be less incentive for them to care for their own spaces.
Caring for your rental property means more than a fresh coat of paint. Keeping everything in your property up to code is critical for the safety of your tenants, and it also protects you financially from lawsuits and more extensive problems in the long run. For example, the cost of paying for regular pest control treatments is far less than the costs associated with termite damage. The cost of making electrical upgrades is less than the costs of an electrical fire. Cutting corners will eventually always catch up with you. Always ensure you're getting annual servicing of furnaces, water heaters, central air, appliances, and other parts of your property that can pose risks if not regularly attended to.
Proper maintenance of your rental property will help avoid any issues with insurance. Keep an eye on these policies, as many have time-specific requirements, such as replacing the roof every 20 years, regularly upgrading electrical lines or water heaters. It can be easy to lose track of these policy requirements, especially if you own many properties, but neglecting them can be extremely costly; you run the risk of losing your coverage or being charged a higher rate as a result of negligence. This is one of the added benefits of having a property manager who can ensure these requirements are adequately overseen.
While prices should remain competitive, there may be an opportunity to increase rent costs when you offer a well-maintained place of residence for your tenants. It's crucial to make it clear to your tenants what they're getting in return for rent prices, and transparency goes a long way. But renters will be less resistant to increases when their appliances are new, building facilities work correctly, and their rental home is in a desirable location
According to Statista, there's been a downward trend in rental vacancy rates, decreasing from around 40 percent in 2009 to just over 26 percent in 2017. This indicates an increasing demand for residential rentals. There's an opportunity for a significant return on a rental home, but for them to continue appreciating, they need to be maintained. By not caring for your property, you run the risk of being stuck with a diminishing asset. Properties that aren't well cared for may also have difficulties getting and retaining tenants. Treat it like the investment that it is, which leads to the final reason to care for your rental property.
Most importantly, your rental property is a long-term investment. Someday you may want to resell, and maintaining it is critical to getting the maximum return, no matter what the current market temperature.
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