THE EXPENSES THAT ACCOMPANY RENTAL UNITS

You just bought your first rental property, congrats! Now what?

Well, you’re probably wondering “how much of my own money is required to maintain my rental units?” The good news is that it all depends on you. Some rental owners like it pay large amounts of money in renovations, while others don’t. It’s totally up to you.

Some things to keep in mind: vacancies will cost you money. Investing in an excellent marketing firm will allow your units to be front and center and get leased sooner. Because let’s face it, not all of your units will always be leased at the same time. And that is something that you need to accept and inevitably anticipate.

Next, most of the highly successful multi-family investors out there will agree on one thing: get some third-party management. As a renter myself, it is so important to know that a legitimate company will be taking care of my needs. Investors are usually silent. They don’t typically deal with the day-to-day issues that will always pop up with renters. And because of this, it is crucial that you find an excellent management company that will help you create a perfect and inviting image for your property.

You should be aware that when you rent units to families, you are almost always bound to run into some issues. Maintenance and repairs literally come with property ownership. You need to put yourself on notice and prepare that eventually an oven may stop working or the AC unit will malfunction. Giving yourself an initial budget, which factors in repairs, before purchasing the property.

Lastly, and quite possibly the most important, have a lawyer’s number on file. In the event that you need to evict someone, or sue a tenant for a breach in the agreement, having a lawyer who is knowledgeable will protect your pocket from excessive costs.

Topics: Real Estate, Investment, Multi-family

Source: Sterling White, https://www.sterlingwhiteofficial.com/blog/2019/9/11/top-5-expenses-that-rental-property-investors-should-always-anticipate