Recent market trends have shown that investing in real estate is a great way to get ahead of inflation. With rents on the rise and vacancy rates at a historic low, you might want to consider entering into, or expanding your portfolio in this asset class. However, it's not for everyone: many people make simple mistakes, such as doing their own property maintenance - here’s a look at how you can avoid this costly error.
Top 3 Maintenance Mistakes To Avoid When Investing In Residential Rental Properties
1. Not paying attention to your property - this is a huge mistake, especially with the fast turn around you can get on rental properties. If you buy a property and do not fix anything, you may end up losing money or at least not making as much as you could if you were to fix up the property and rent it out. The easiest way to avoid this is to have a plan for what needs to be done before you even buy the property. You can use this plan after purchase by creating a checklist of what needs to be done and then working your way through the list one item at a time.
2. Not paying attention to your tenants - if you allow your tenants to damage the property, then that will cost you money in the long run. If they damage something, let them know that they are responsible for fixing it or replacing it so that when it comes time for them to move out and leave the property in good condition, they will be more inclined to do so. You can also establish penalties for excessive damages caused by bad tenants.
3. Not being organized - it is very important that you stay organized throughout this process so that everything goes smoothly and you are able to maximize your profits.
What You Need To Be Doing To Maintain Your Property And Maximize The Return On Your Investment.
There are a number of things you can do to help increase the value of your property. It all starts with how attractive the home is to potential tenants. Remember, curb appeal makes a huge difference. But what's even more important is making sure your tenants can afford repairs for damage they are responsible for.
If you want to improve your bottom line, you need to make sure your tenants can afford repairs when they need them. The best way to do this is by having adequate insurance in place and educating yourself on how much it should cost. It is common for people to buy insurance that covers anything and everything, but this isn't always necessary or wise.
If your tenant has adequate insurance and can pay for most repairs, you don't have to worry about paying out of pocket. Also, be sure and educate yourself on what typical repair costs should be in your area. This will allow you to know if something seems too expensive or suspicious. In addition, it will help you request estimates when needed and negotiate the best price possible for everything from appliances to plumbing services.
Why Hire A Professional?
A good property manager will be experienced, knowledgeable and equipped with the tools to provide all the maintenance and inspection services your home will need. They understand that managing a property is not just about collecting rent, but it's also about communicating with tenants, attending to issues that arise, making repairs and preparing the unit for the next tenant.
The best property managers have connections with vendors and service providers that can save you time and money. They also know how to negotiate on your behalf so you're getting everything you need at a fair price.
Any landlord knows that choosing a property manager is one of the most important decisions they'll make when investing in real estate. But what makes a good property manager?
With roughly four decades of real estate experience, and as an investor myself, I have found there is one thing that sets great property managers apart from the individual investor; they have experience. A common misconception about property management companies is that anyone can do it. However, managing a rental property requires specific skills and knowledge. As an investor, a realistic evaluation of your skill set is necessary to maximize profit. If you don't have experience managing properties or working with tenants, it's in your best interest to hire someone who does.
We’ve found that the best way to ensure your investment real estate performs well over the long-term is to outsource these asset management tasks to a fully licensed and insured property management company. When your property management company is working for you, at arm’s length from you, they have a vested interest in keeping your investment performing at peak levels. That’s what you want. They’ll be more motivated to provide top-notch customer service and conduct more thorough inspections of your property than you could on your own.
If you're someone who is serious about investing in real estate, then we are the company for you. We have a proven track record and we cannot wait to help you on your journey. Contact our Austin property management company today to learn more about the services we offer landlords in Austin, Texas.