You’ve invested a lot of money into owning your rental property, and whether you currently have tenants occupying it or you just bought it, you’ll need to act to protect your investment. The only way to continually see a return on your investment is to keep the property occupied which requires maintaining a safe and healthy environment and the right tenants. Below are a few tips to help you keep your investment intact to reap the most return.
Annual Property Inspections
As a landlord, you’re required to keep the home up to health and safety codes set by the city and state. Annual property inspections, either conducted by a city inspector or a home inspector you hire personally, can help you keep the property up to code and ensure that you’re tenants remain safe. As violations, safety hazards, and other issues are pointed out to you, you’ll need to act diligently to get them repaired before the matter escalates.
Periodic Pest Control Services
Part of maintaining a safe and healthy environment for your tenants means keeping the pests at bay. While a few ants in the springtime or a spider or two crawling around is to be expected, too many insects and rodent sightings could mean that there’s an infestation issue which can lead to all kinds of health-related issues.
Location-based pest control companies for a rental property would be the best solution. Since they know the area, they’re more inclined to know the types of bugs and rodents that are most common in the region and how to best rid them from the property without bringing harm to the tenants, their pets, or the property itself.
Routine Maintenance
Maintenance is the key to catching problems before they become big and or eliminating them from ever happening. From the heating systems to the appliances and plumbing, it is imperative for you to keep up with maintenance schedules. Failure to do so could result in serious issues which cost a lot more money. Common maintenance tasks might include cleaning the gutters, inspecting the roof, having the furnace cleaned, cleaning the vents, changing air filters, having appliances serviced, and getting the plumbing checked.
Get the Right Insurance
Having homeowner’s insurance may not be enough to protect you and your rental property. Therefore, you’ll want to review your policy to find out what’s covered, and if you’re missing coverage you’ll need to invest in more insurance. You may also need to purchase landlord liability insurance to protect yourself should a tenant be hurt on the premises.
Upgrades Never Hurt
Remember, your rental property is an investment and may, on occasion, need a little facelift to improve its value. As you set aside some of your rental income, you might consider investing in some property upgrades. Whether it’s installing a new bathroom or kitchen countertop, this can increase the value of the property and even justify increasing rent.
Find the Right Tenants
At the end of the day, no matter how safe and healthy your rental property is, if it’s not occupied by the right tenants, you could be looking at an uphill battle, and your property could suffer in the meantime. Unfortunately, some tenants have been known to skip months of rent, damage the property, and more.
To protect yourself from the headache and to keep your property intact, you’ll want to take extra steps towards securing the right tenants. This should include not only checking their employment and background but should also include checking their rental history. Ask for references such as past landlords to get an idea of what the tenant was like in the property. You want to find someone who is not only financially responsible but also willing to treat your property with care.
If you’re going to invest in real estate by owning a rental property, be sure that you take the necessary precautions to protect it. Failing to do so could result in the need to invest a lot of unnecessary time and money. Each of the above-mentioned steps will help to keep your rental property intact and ensure that you get to reap the financial benefits from it for a long time.
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Very nice breakdown on how to protect your real estate investment.
If I may also add one point around being greedy. Sometimes, keeping your rental price flat year-over-year for a good tenant helps reduce vacancy and enhance your relationship with the tenant. A little goodwill goes a long way.
The additional revenue just isn’t worth the headache, at times.
Great post! Very on point.