Tenants, Toilets and Other Rental Property Repairs

Being a rental property owner means dealing with maintenance, repairs and tenant upgrade requests. Even if you’ve hired a property manager, you will still have decisions to make regarding the upkeep of your property.

In general, you should set a maintenance schedule that keeps your property and the unit(s) in your property in the best shape possible. There are several reasons for doing this, but the biggest one is that a property that is kept in good condition attracts and keeps good tenants. The second big reason for doing this is that regular maintenance is often a good way to keep costs down. If you leave things unfixed for long periods of time it can cause other issues. For example, a leaky sink left unfixed could be damaging the cupboards and even the floor underneath the sink.

If you have a property manager ask about their schedule for doing the following things. If you manager your own property, then here’s a suggested schedule for checking on things.

Monthly:

Walk the exterior of the property and pick up garbage from around the property. Make sure the lawn is mowed, weeds are pulled and everything is in good shape. If you have laundry facilities, check that the lint is being removed from the dryers and take out any money if they are coin operated.

Quarterly:

Check windows, doors, and exterior of the house for any leaks or damage. It’s also a good time to check on the furnace or air conditioner and change filters.

Semi-annually:

Change the batteries in the smoke detectors, check carbon monoxide detectors, clean gutters, check appliances, plumbing and electrical outlets in the house. Check for things that might be loose as well (door knobs, railings, or screws). You aren’t looking for things to fix but you want to be aware of things that may require maintenance when a tenant moves out or trying to find little things to repair cheaply as a way to prevent bigger problems later on.

When tenants move out:

Have the carpets and drapery cleaned. Paint the walls if necessary (and usually it is), and get the unit professionally cleaned (including the stove and fridge).

Planning for this regular maintenance on your rental property makes things fairly easy. You will have a good idea of when major expenses like a new roof, a dishwasher or a paint job will be required. You can set aside a little extra rent money to cover these costs. The trickier part can be knowing when to make improvements to a rental property when a tenant is asking you to spend money.

In our Toronto tri-plex we recently turned down our tenant’s request for blinds in the living room of one unit. But at the same time, we agreed to put in a new toilet in another unit. Our tenants can easily figure out that we’re bringing in nearly $ 4,000 in rent per month from this property, so they may think we’re being stingy by refusing their requests. But, you have to keep in mind that, while you want to keep your tenants happy the money your spending needs to either prevent or reduce an expense or it needs to generate revenue.

In the case of a renovation or upgrade requested by a tenant, we ask ourselves a few questions when we’re considering whether to do the work the tenant is asking for:

What are the costs of not doing it (is the tenant likely to leave and what will that cost if they do?)?
Is there another way to address the problem?
Are there any issues with delaying the expenditure?

After we consider these things, we use a final formula to calculate how long it will take to recover our costs.

Total Cost of the Upgrade or Repair / New Money Earned (or Money Saved) each Month = # of months to repay the expense.

On items under $ 1,000, as a general rule of thumb, if you can recover the cost in 12 to 18 months then the money is well spent.

In the case of the blinds, the tenants wouldn’t pay more rent just to have blinds. Instead we agreed to pay for dry cleaning the curtains which will be less than $ 100. There’s no direct return on this – but the tenants wanted the “dirty curtains” replaced so this will keep them happy and it’s not a large expense – especially given that the tenants have been long term.

For the toilet replacement request, we decided that getting rid of the grungy old toilet will not get us higher rent, but it will make it easier to attract and keep good tenants. And, if we replace it now, our tenant’s father (an experienced plumber) will install it for free. Finally, we’re replacing a water guzzler with a low flush model (est. water savings of $ 10/month) that will qualify for a $ 75 water conservation rebate from the City of Toronto. The formula of benefits looks like this:

$ 250 – $ 75 rebate = $ 175 Cost of the Toilet

$ 175 – $ 10/month water savings = 17 months to pay off (PLUS we save $ 80 on installation).

The cost savings plus the added benefits of saving installation costs made it a very appealing use of our cash. Just remember – real estate investing is a business and you need to get a return on any money you spent – even if that return is simply in cost savings!

If you are managing a property yourself there are some great books out there to help you. Two books definitely worth checking out are:

(From the Dummies Series of Books) Property Management Kit
The CompleteLandlord.com Ultimate Landlord Handbook

I know that’s a lot of information to digest, but your monthly cash flow is dependent on you maximizing your rental revenue and minimizing your expenses – so this is pretty important stuff to know!

Dave Peniuk is a real estate investor with a free newsletter on real estate investing. Learn the insider secrets to building a seven-figure real estate portfolio while so many properties present once-in-a-lifetime opportunities… Get the free Rev N You with Real Estate newsletter and start realizing your dreams today. http://www.revnyou.com

Fort Tryon Real Estate – Some Helpful Tips For Finding A Rental Property

Fort Tyron real estate in NYC is known to be one of the best places to live in the city, Located in Manhattan, the area extends from St Nichols Avenue to the Amsterdam Avenue and from 140th to the 145th Street. Since Fort Tryon is located on one of the highest points in the city, it offers a scenic point from where the views of Hudson River can be enjoyed. The skyscrapers in the area as well as the apartments are much in demand because of their views as well as their proximity to the Heather Garden and several other noteworthy gardens in the area.

Finding a Rental Property Suitable for Your Needs

Fort Tryon real estate is much in demand and therefore you should expect high rental prices. For many people, these apartments may not be suitable for their budget. However, it is best to negotiate before you take an apartment on rent. Even though it may seem that negotiations may not help, if you have the help of an experienced agent it would be possible to get lower rates. Real estate agents who have been in the business for long would be able to negotiate on your behalf and offer you lower fees and rental prices.

Things to Take care of before Renting an Apartment

Before you consider Fort Tryon real estate, it would be advisable to research a little and learn more about the area. You should also research about the rental prices in the surrounding areas and learn a little about the negotiating process before you contact a real estate agency. If the agent thinks that you are aware about the rental rates in Fort Tryon and that you know a little about negotiating, he/she would be more willing to make deal with the landlord.

Basically there are two types of listings that the agents will deal with, closed listings and open listings. For open listings in Fort Tryon, the agents will want to make a deal for one of the apartments on behalf of the client. What this means that there are several people seeking the same apartment and there are several agents that are trying to settle a deal. For closed listings, there would only be one agent who would have the right to close the deal for that apartment. Open listings are normally easier to negotiate since the agents would be in a hurry to close the deal so that they can get a commission. If you push the agent a little, you would be able to get lower rental rates and a discount on the fees.

If you follow these tips, you would be able to get Fort Tryon real estate options with lower rental rates than you would have thought.

To know more about Fort Tryon real estate and other real estates in NYC, please visit http://www.domain-properties.com.

Simple Yet Effective Tips For Rental Property Investment

The way the economy has been is enough reason for most people to shun away from making any investments. For the daredevils, however, the risks that the economy brings about are enough motivation to for a deal after another. Putting up for a rental property investment is one of the latest trends of today. The economy might not look good right now, but when you are down, there is definitely no other way to go but up.

It cannot be denied that the real estate industry is one of the most affected ones when the going gets really tough for both or either of the local and global economies. This is why not a lot of people get into the habit of investing in real estate when the economy is down. What most people actually do not know is how dynamic the industry can be. Hence, it is not just all about the locality but also about the approach.

Before getting into any financial endeavors, it is a must to learn enough about them. Here are some helpful tips to guide anyone along the starting line to success with an investment in rental properties.

1. Be smart in choosing the location. This is one aspect of any business that should be focused on more. The needs of an area are different from that of another area. Therefore, one should choose the place where the need for one’s goods is present. Otherwise, everything ends up as nothing more than waste.

2. Study the property. It entails assessing all the factors and the possibilities involved in the maintenance and upkeep of the property as well as in the actual capacity of the property investment to bring home the bacon. No one wants to get into a business that does not bring in enough returns, financially or in any other way. In the end, it is all about the profit.

3. Know the right people. Getting a book full of significant contacts has its payback. For one, there is someone to go to for every need it hand, whether it is for keeping the property at its glowing state or to increase its popularity within and even beyond its market.

4. Know a profitable property from one that is not. It is just impossible to rely on luck and wait for the future to see if the investment is worth it or not. Knowing what is in store with every investment is the key to one of the major doors toward success.

5. Set no limits. Although limits cannot be avoided, they should be realistic and reliable. However, they should not be imposing and crippling for an individual to actually think about giving up easily. Limits are simply there to remind humans of their imperfection. They are not set to put an end to a dream.

In the long run, a rental property investment is bound to be highly profitable. For most people, all it takes is a little more trust in the self and courage to overcome the risks. With that combination, success is not going to be that hard after all.

Are you looking for Joint Venture Property opportunities? Are you looking for property developers? Property Development and Investment Solutions is a trading name of Building Solutions (Midlands) Limited. Contact us today.

Tips In Making Money With Rental Property

When you look around, many people are diving into the rental property market. This might be for a great reason and also principal consideration could be substantial revenue potential that it projects. Moreover, making money with rental property will not be only a one-time deal. It might recur on a monthly basis and this also will mean a steady flow of revenue for the investor. Then again, being a landlord has its inescapable headaches. It may possibly involve having to wait for long time before having the net profits available.

Consequently, making money with rental property requires wise points to follow. The first one is that the landlord should really charge rent that is way above the cost of having the property. The landlord need to think of having to pay for mortgage, insurance, preservation, taxes, and advertising among others. He must not wind up paying out for this kind of expenditures from his or her own pocket or from his other sources of earnings. Therefore even before a rental property is considered, the actions needs to be well-planned.

This provides you with way to the second tip in making money the most from rental property. Before interest is secured in on a particular property, make sure that the real estate market has been carefully searched for varying costs. Search for the right deals possible and see about their rental and selling prices. Seemingly, making money with rental property involves having to maintain versed with existing trends and having to study long-term projections.

Another rental property principle has to do with area. Location is everything in the world of real estate and more so with rentals. Be certain that the area doesnt just hold the form and also the number of clients you are seeking for but the affordable property values too. Leasing property that’s too expensive can be quite hard to rent out and might take a longer waiting period too. This is certainly risky when some other related properties in the neighborhood are reasonably-priced when compared to whatever you have to offer.

Once all else has been established, then making money with rental property is just around the corner. One more principle would be to fish for the most dependable tenants who are able to pay for the lease formerly set. If you must browse through their credit history, do not hesitate to inquire about it. Should care isn’t given in the choices, a person may wind up having tenants who are either late in their payments or will take quite a few years before having the ability to pay. Whatever takes place, your cash flow ought to be smooth sailing and constantly to the brim.

If by any chance that your renter winds up to be difficult, you should not evict them by whim. Every tenant is definitely guarded by law and you should agree to them if you’d like to remain longer in the market.

At the end of the day, the experts or other rental owners would be glad to answer your questions and assist you in making money with rental property.

Claud Pearce is an active real estate investor based in Cincinnati, Ohio. He is a member of the Greater Cincinnati Real Estate Investors Association and works exclusively with investors who want to grow, learn and succeed at real estate investing. Get more information now at http://www.cincinnatireia.com.