Over ten million Americans own rentals that must be properly maintained, making it a concern for many of us.
Investing in property maintenance is key to protecting your investment and keeping tenants happy. But if you've never dealt with this, it can feel overwhelming knowing where to start.
Sounds like your situation? Luckily, we have the answers you're searching for. Here are tips on planning your property maintenance costs.
Understand the Common Expenses
Listing common property maintenance expenses will mentally prepare you and make it easier to manage your finances.
A major one is property repairs because they maintain property value and prevent further damage. For instance, landlords must handle electrical or potential issues like water damage.
Landlords must set aside funds for landscaping. It's essential to improve your property's curb appeal and make it easier to attract potential tenants. Note that each property is unique and may require further maintenance, so keep this in mind when planning your budget.
Additionally, be prepared for pest control needs. This can come in many forms, from hiring an exterminator to spraying pesticides around the property's facade. Because costs can vary, know that you should always be prepared to avoid any stress.
Create a Realistic Budget
Saying that, if you haven't dived into rental property accounting yet, start now.
Set aside a chunk of your rental income for essential maintenance costs. This means that you're always prepared for unexpected expenses without falling into debt or spending your savings.
Further, landlords should always take on board resident-related damage, even if they have good tenant relations. For example, you may need to replace broken appliances or holes in the walls. If you don't have the funds, deduct property maintenance expenses from the tenant's security deposit instead.
Prioritize Essential Tasks
Don't expect to have enough funds for many maintenance tasks at once. To stay on top of things, start by fixing potential hazards, such as loose railings or dodgy light fixtures. Landlords should also deal with tenants' concerns to slash vacancy rates and improve their relations.
Be Prepared for Every Season
A useful tip for planning expenses is factoring in the seasons, especially in winter. Landlords should insulate pipes, get the boiler professionally inspected, and clear debris from the gutters.
Although it's less time-sensitive, make a list of property maintenance tasks in the spring and summer. Improve your property's curb appeal by power washing the walkway and inspecting or repairing the roof to prevent damage in the colder months.
Track Maintenance Costs
Get in the habit of tracking your property's maintenance costs. Ideally, create a spreadsheet and log spending, regardless of how little it was. This will help you stay on track with finances and make informed decisions about your rental.
Prepare for Your Property Maintenance Costs Today
Now that you can prepare for property maintenance costs, it'll help you better manage your finances.
At PMI Mecklenburg, we're passionate about helping landlords manage their properties and find the tenant of their dreams. If you're ready to rent out your property, we'd love to hear from you. Contact us today to chat with a member of our team.
