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5 Ways to Curb Property Maintenance and Repair Costs
James R Kobzeff
Real estate investing involves acquisition, holding, andsale of rights in real property with the expectation of usingcash inflows for potential future cash outflows, and hence,generating a favorable rate of return on that investment.In other words, real estate investing is the act of purchasing real estate with the goal of making a profit andacquiring wealth. Real estate investors invest in real estateto make money, bottom-line.With that said, there is a crucial need for income propertyowners to reduce and eliminate money wasting property maintenance and repair expenses. It's onething to collect substantial rents, but landlords who turn a blind eye to maintenance and repair costscan find that their cash flow is surprisingly lower than expected and their profits bitterlydisappointing.Okay, let's look. Here are five ways landlords can curb maintenance and repair costs, and perhapsincrease the profitability of their real estate investing business.1.
Buy low-maintenance properties.
This might seem obvious, but investors sometimes purchase strictly on the basis of price or curb appeal (with no regard for maintenance).Always prefer properties that are constructed with materials and fixtures that requireless maintenance, and are built to last with minimal care. The same applies to yards,shrubs, and landscaping.2.
Toughen your tenant selection.
Apartment buildings are not the only part of your investment that is low and high-maintenance. There are also low-maintenance and high-maintenance tenants. The idea, of course, is to avoid the latter and select the former.Watch out for chronic complainers and people who show no "house sense." You might be surprised to discover that you can eliminate up to one-half of your maintenance,repair, cleaning, and wear-and-tear costs simply by selecting tenants who demonstrate personal responsibility. Bear in mind that things seldom break by themselves and toiletsdo not just stop up and overflow.3.
Impose sound repair clauses.
A good way to promote tenant responsibility a bit further is to shift the first, say, $100 of every repair cost onto their tenants' shoulders. Youmight also want to favor high security deposits.4.
Enlist a handyman.
Build a relationship with a person on whom you can regularly
©2008 James R Kobzeff. All rights reserved.