Here’s something for those of you who already own income property. It doesn’t matter if it’s a condo you rent out, a much larger apartment complex, or anything else. Do this, and you’ll kill three birds with this one stone, maybe more.
Inspect every square foot of your property as if you were thinking of buying it — or, better yet, about to sell it. Make copious notes — be honest to a fault, at least with yourself. Bring somebody with you, somebody you trust implicitly. Ask them to speak freely about anything they see or don’t see. Use a critical eye.
Combine all your notes into one master list. Go through these notes and make a more or less formal A-List, then a B-List.
On the A-List you should include all the major problems you judge should be dealt with quickly. Here’s some suggestions, though ya gotta know it’s not an all inclusive list by any stretch, OK?
1. In what condition are your appliances?
2. How’re the heating and/or air conditioning units doin’?
3. Will new kitchen counters positively impact your rents? Flooring? Carpets?
4. Possible to improve floor plan by modifying non-bearing walls?
5. Bring a roofer buddy with you. Have him go up there. Listen to him.
The B-List you can construct on your own — each owner is different, as is each property. Also, if you take care of your entire A-List as quickly as you can, here are the potential results.
The quality of your tenants should improve measurably. You’ll be able to increase rents on current tenants, maybe more on incoming tenants. Generally speaking, your operating expenses should decrease. Property’s value should, probably will, increase. Management time should go way down.
Again, not an all inclusive list of results, but you get the drift.
New clients coming to me with long held properties are asked to do this on a regular basis. They come back to me with incredible if sometimes hilarious stories. Most of all though, they come back with a far better understanding of the last several years of ownership. Sometimes long standing mysteries are solved, and potentially humungous repair bills are avoided. In-house surveys have shown that to be an imminently good thing.
Try this, then please, get back to me with the results. We’d all like to hear about what you found. It’s work, and takes some time, but experience shows it packs a huge payoff in increased value, higher rents, lowered operating expenses, and very often, vastly reduced management time. Oh, and don’t forget yer clipboard.
Since I’ve been given the okey dokey to include my cell number here, you now have a couple choices. You can email me using the Contact BawldGuy thingy, or you can give me a buzz at 619 889-7100. If ya miss me, I’ll get back to you pretty quickly. I’m good at that. Same goes with email. You’ll always get a reply, which more likely than not will be within the hour. Have a good one.
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About BawldGuy
[Income propoerty] Inspect every square foot of your property as if you were thinking of buying it — or, better yet, about to sell it. Make copious notes — be honest to a fault, at least with yourself. Bring somebody with you, somebody you trust implicitly. Ask them to speak freely about anything they see or don’t see. Use a critical eye.
No, no, no! You are wrong. This is not about income property it is about all property. The very first home I lived in (I owned several income before becoming my own landlord) had several annoying minor faults that we never fixed until getting ready for sale. One was $3 worth of paint on an ugly paneled wall. To this day 15 years later my better keeps reminding me of that when it comes to taking care of the house we now occupy.
Your grandma had a phrase for it: “An ounce of prevention.”
I can’t add anything to that other than I’ve always suspected our grandmothers new each other.
My grandma wore out her hip replacement. We had to remind her at 93 that she promised not to climb the ladder any higher than to paint the second floor window sills. She didn’t forget, she just didn’t mind us.
I’ve found that a schedule of consistent maintenance for income property pays dividends as it puts renters on the defensive and gives them multiple levels of complacency. No complaints, no past problems and no future concerns equals pricing authority.
As you can possibly tell my trigger finger is getting itchy. Your Texas/Midwest recommendations have proven big winners for your clients. Bravo. I’m still uncomfortable and you’ve covered that issue as well. Persevere.
I just keep on keepin’ on . Have a good one.