Thursday, July 2, 2015

Common Expenses for Rental Properties

Here are some common expenses that you can expect and prepare for when owning either apartment units or rental properties.
* Carpet: Carpet is something that always needs being cared for. Think about it. You need to get the carpets cleaned when someone moves out and moves in. The carpet might get stained or ruined as a result of use or overuse. Carpet may just be old and out of style. When carpet goes out of style it is something that can keep someone from renting the property. Many property owners simply put in high wear carpet that is neutral in color because it doesn’t wear out easily and it matches everything for a long time. Its the way to go if you ask me. Other people will allow renters to do what they want with the carpet. When I owned my properties I would do ‘lease to own’. When someone signs a lease to own it gives them the ability to do what they want to the property which gave me a chance to make a little extra money by getting specific carpet guys or paint guys into the property.
* Paint: Things happen. Unless you are doing a lease to own, never let a renter paint the property. People have unique ideas on color and it rarely turns out right. Also, when someone moves in and out they are inevitably going to do some damage to the walls. Once that happens you will have to paint. Keep gallons of generic paint colors around that you can touch up with that has already been matched to the existing colors. Use basic colors that don’t go out of style and blend easily. You want it to look nice but also you have to think about making money on the property. Money is made by not coming out of pocket for unnecessary things.
* Plumbing: One of the most important things to always check when buying a rental is to look at the plumbing. Look for signs of water damage on the walls and ceilings. Check to see how old the pipes are and if the water is soft water or not. All these things matter because the most expensive type of damage to a home is water damage. We’ve lived in several different places over the last few years. In one home we were using the shower and the water was draining to the garage. It sounded and looked like a rainstorm in there. Water damage almost always causes mold and that can cause health problems for everyone.

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