A common mistake many real estate owners make is believing their property appreciates over time. However, that isn't always true. When buildings receive little maintenance and upgrades, they often depreciate in value.
However, regular maintenance can go a long way toward improving your property's value. Rocket Mortgage reports that the annual national average appreciation is 14.5%.
This figure demonstrates the importance of maintenance for your investment. However, many landlords make mistakes with property maintenance practices. A flawed property maintenance routine could damage your property's value.
Fortunately, you can avoid these errors! We'll explore five common mistakes investors make in this guide.
1. Putting Off Maintenance
The first mistake many landlords make is procrastination. Small issues like leaky faucets can quickly become more severe.
Putting off rental property repairs doesn't just hurt your property; it can also hurt your relationship with tenants. After all, renters want to live in a safe, clean space. Living with property damages can make them lose trust and search for another building.
The best way to avoid this issue is to schedule regular rental property inspections. This way, you can stay updated on your property's condition and spot potential problems.
2. Not Using a Property Maintenance Budget
Many investors prioritize acquisitions in their budgets. However, property owners should always dedicate a portion of their budgets to repairs.
Investors sometimes differ in their budgeting approaches. Some prefer monthly repair budgets, while others keep an annual budget. You can decide which you'll use based on your preference.
3. Letting a Tenant Handle Rental Property Renovations
When you feel overrun with landlord work and responsibilities, it's easy to let someone convince you they can handle repairs. Tenants often claim that they can take care of repairs in your building for their own convenience.
Sometimes, tenants know how to resolve the problem. However, a tenant who doesn't know how to fix the issue could worsen it. That means you'll have to spend more money in the long run.
Instead, hire screened workers to fix building issues. This practice saves time, money, and effort.
4. Try to Fix All Problems Yourself
Some landlords try to solve all their building problems themselves. Many investors with only one property become inclined towards this mistake.
Once again, this practice may work if you have experience fixing some issues. However, it's best to hire a contractor for your building problems. Otherwise, your tenant can blame you directly for continuing issues.
5. Not Hiring Property Managers
Managing one property isn't easy; handling several often feels impossible. Scheduling regular inspections, repairs, and other responsibilities can drain landlords and make their investments seem impossible to handle.
That's why landlords should hire property managers. Property management services can help you balance your responsibilities across several areas. They can also act as intermediaries between you and your tenants.
Avoid These Mistakes with Property Maintenance by Hiring Us
Avoiding these mistakes with property maintenance becomes easy when you hire property managers. That's where Home River Group steps in!
We offer property management services in cities across the country, including Philadelphia. We offer several services, including building maintenance, referral tools, and acquisition help. Contact us today to learn more about our work!
