You’ve found the perfect house. Not for you. No, this is an investment opportunity. Congratulations, new landlord!
Wait…not so fast. How are you going to get the best rental fees without smashing your piggy bank into a million pieces? I am happy to share a few of my own rental property improvements secrets that I’ve spent years, and lots of money, learning the hard way so you don’t have to waste your time or money.
I got into rental properties not just to make money, but to offer value to my renters and make them want to give me a good price for a fair trade. I found that it was easier to make a few minor adjustments that gave me a good return on my investment while making my renters ready to hand over their first security deposit and rent money.
Before making the purchase, I put most of my time and money into making sure my investment is as sound as possible. Visible water damage on a ceiling could mean anything from a small plumbing repair to an entire roof replacement. I don’t have to tell you that the difference in costs can be a few hundred dollars to several thousands. That’s why it pays to find and work with the right building inspectors. It’s also where plenty of things can go wrong.
In the beginning, I was somewhat naive about what to expect from a good housing inspector. Business friends and associates cautioned me that I’d be forced to “grease the palm” of the right inspector to get what I needed. As I sat at my desk writing that first inspection check, I recalled the nearest ATM in case I needed to grab a little cash later for the transaction. I sighed and started of thinking of how to build in this added expense to my investment budgets.
“Tom” had been recommended to me by a good friend in the business. We met outside the property I was buying where he stood with his clipboard and pen in hand. I introduced myself as he shook my hand and started telling me his thoughts on the exterior condition of the house. “This dry rot here could be termites or nothing,” he noted. My heartbeat rose and my chest grew tight.
“What would you suggest?” I said trying not to let the frustration in my voice show.
Kicking at the spot with his foot, he recommended a pest inspector. All I could think was “Great. I know I should have stopped at that ATM by the 7-11.”
Fishing into my back pocket for my wallet, he put his hand up. “Let me finish. I know somebody. A professional. I don’t know his rates, but I could probably have him out here today. I just have to make a quick phone call.”
I wiped the sweat from my forehead. Tom was back to me with an answer. It was only going to be $79, but if I liked his work and promised to use him again, he’d give me the first inspection for free. I could feel my heart rate lower as I drew in deep breaths of air. “Okay,” I agreed.
Finding a guy like Tom or a good pest inspector requires more than a quick Google search. Here’s where it pays to know the right people. Even if you’re new to the rental property management game, you can find good players if you’re willing to be patient and learn from those who know things you don’t. I offer my own cautionary tales to newbies all the time. Sometimes they listen to me and find success. Then there are the others.
I’ll save some of those sad little stories for part two.
For now, I just want you to start wrapping your head around this: rental property investments are a great way to grow your own wealth. The rewards you can reap are potentially huge. It pays to learn from others’ mistakes so you don’t make your own.
At Roxbury Mill Properties, LLC We specialize in purchasing distressed homes, renovating and reselling. In this way we not only help homeowners out of difficult situations but also improve the community by providing affordable housing that attracts new homeowners to these neighborhoods.
Through our extensive knowledge of the business, our network of resources, and years of expertise, we are able to assist homeowners with a wide variety of real estate problems. We pride ourselves on working one-on-one with each customer to handle their individual situations.
With the ability to directly purchase homes and make cash offers, we can create an extremely fast, and hassle-free transaction.