Four of the Biggest Features in Rental Properties That Lead to Hemorrhaging Money
Owning a rental property can come with hidden or unforeseen expenses. While many property owners factor in things like taxes, HOA or condo fees and insurance, the real cost is the maintenance and upkeep of the property or unit. If you are considering purchasing property, keep these four things in mind.
Hot Tubs and Swimming Pools
Hot tubs and swimming pools demand constant oversight with regards to maintaining PH levels, cleanliness and repair/maintenance. It is important to have them under the care of a professional who can identify problems before they become too costly.
Decks, Docks and Exterior Structures
Property owners should regularly inspect any structures that are constantly exposed to the elements. The potential for damage, including anything caused by weather or animals, can be a hazard to renters. It can also be difficult to repair.
High End Appliances
While many homeowners want their kitchens to look nice in photos and provide top of the line appliances for potential renters, consider whether it is worth it in the long run. In some cases, finding replacement parts or repairing an expensive appliance may take a lot of time. In this case, the renter would probably have preferred a more off-the-shelf, easier to service item.
Older Heating or Air Conditioning Units
When purchasing a rental property, consider the age of these units. Many of these units have a life span of 15-25 years. While you may be able to get away with replacing parts as needed for a little bit of time, all those service calls and up and no one likes being without air conditioning or heat during extreme temperatures.
Remember that when purchasing a rental property, to be sure to see not only if the items mentioned above are in good working condition, but if so, how much it will cost to repair or replace these items in the future. Next, set aside a small savings account to help cash flow these items so you are prepared to fix them as needed.