Reeder Asset Management is in the property management business for several reasons. One of the biggest reasons for our existence is to save you from the hassle of dealing with property maintenance. We've been where you are as a real estate investor, and we understand how challenging it is to keep up with property maintenance.
According to research done by Zillow, the average homeowner will have to shell out at least $9,000 per year for the essential maintenance of a home. We know that those costs can make rental property owners wish they did not have to deal with unexpected maintenance and repairs.
Whether you invest in Salt Lake City as a local investor or from out-of-state, complications will arise, and property maintenance is unavoidable. Here are three compelling reasons why it's best to budget for maintenance—instead of getting caught unprepared to deliver quality rental homes!
1. Cash Flow Suffers When Investors Wait for Things to Break
Cash flow is one of the most important aspects of your rental property business. That refers to the amount of money flowing into and out of your business every month. For a business to grow, it must have a positive cash flow.
The smaller the expenses associated with managing your real estate property, the more positive cash flow you are likely to have. You can keep those expenses low by fixing your Salt Lake City property as soon as a problem arises rather than waiting for things to break.
For example, if the property's HVAC system has issues such as thermostat malfunctions, dirty filters, and strange noises, it’s best to call a repair technician right away. Quick (and quality) fixes can prolong the life of an HVAC system and help investors avoid costly replacements and repairs.
Repair delays can improve your cash flow in the short term. However, delaying critical repairs will be more costly down the road. That means your real estate investments can experience negative cash flow when it's time to replace the HVAC system or a roof that's gone too long without a repair.
2. You Lose Renters and Income By Pinching Pennies
One thing we can assure you through the experience of our Reeder Asset Management team is that if you don’t maintain your property, you will lose rental income. We've seen it happen before, and we'd hate to see it happen for you!
Renters are choosy. They have a right to be! After all, they pay you each month to stay in your rental property. Therefore, they should live in safe and comfortable accommodations, and the law requires property owners to provide those conditions.
Most renters will not renew a lease for your property if you don’t maintain it well. Plus, delaying repairs or relying on low-cost contractors or DIY expenses can lead to repeated repairs for the same issues—and more costly problems down the road.
Property maintenance is a necessary aspect of being a Salt Lake City rental property owner! Invest in quality contractors, timely maintenance, and professional repairs to retain renters longer and improve property values.
3. It's Smart to Budget for Routine Maintenance—and Emergency Repairs
You can't plan for the type or timing of emergencies, but you can budget for them to happen! Sometimes, emergencies can arise regardless of how well-built your investment property is or your diligence in keeping up with routine maintenance and prompt repairs.
Common rental property maintenance emergencies include:
- Burst pipes
- Broken water heaters
- Gas leaks
- Clogged toilets
- Broken windows due to vandalism
- Foundation cracks
When these types of issues happen, real estate investors can't wait on a rental payment or loan funding to come through before scheduling a repair. It's better for your cash flow to budget for property repairs than not need to spend the money.
Not having the cash flow cover emergency repairs can be a costly mistake. Delaying repairs for the problem could make issues worse. For example, when your property gets flooded, it could cause mold growth if you don’t deal with the water damage.
Successful investors will always budget for routine maintenance and emergency repairs. Being prepared for unexpected expenses helps boost the ROI for your investments!
A Property Manager Helps Your Budget For and Schedule Property Maintenance
Real estate investors don’t have to deal with any maintenance, repairs, or budgeting for their investment properties. The right Salt Lake City property managers are there to help you handle the day-to-day (and unexpected) aspects of owning an investment property! Whether you're local or a long-distance investor, having a reliable property manager relieves the stress of keeping up with rental property maintenance needs.
At Reeder Asset Management, maintenance is a priority! We take on the headache of property maintenance, so you don’t have to. If you're struggling to handle repairs or manage your maintenance budget, reach out to find out how we can help protect your investments (and maximize ROIs) with our maintenance services.
Learn more about protecting your investments! Download our free resource, "Protecting Your Investment Property: A Guide."