Repair price points on rental properties
Im organizing the difference between minor, moderate, and substantial repairs cost on rental grade properties although my inexperience is hindering me. What would be a good price distinction between each category?
ex. Minor repairs could fall into anything under $______
ex. Moderate repairs could fall into anything between $______ & $______
ex. Substantial repairs could fall into anything over $______
what numbers would you personally fill into these blanks?
Thank you very much for any input, it is much appreciated!
Most Popular Reply
#3 Managing Your Property Contributor
I've never bothered categorizing repairs that way. I just add up the cost of the repairs that are needed and the time to do it. If it is extensive and will take me a month or two to do it, do I have the funds to cover the bills while it is vacant and are the repairs essential (usually the answer is yes). How much will it increase the value of the property or the ability to get a good tenant. I've had two places that I bought knowing they needed a lot of work. One took longer than expected, but that was because we found problems in the bathroom and had to take it back to the studs. Most of the other places I've bought need some paint and a few small repairs.
If you want to create categories, you might want to have: repairs that must be done now and repairs that can wait and be done later while it is rented if there are problems (eg a fridge may work, but be old-buy a new one when it breaks). If you can see something that is going to be a problem in the near future, but requires the place to be vacant or would be a major disruption, do it now.