In the complex world of single-family rentals, surprises are rarely a good thing. This is definitely real any time those surprises show up in the manner of unexpected costs or expenses. For the new real estate investor in Chandler, there can possibly be a number of these unwelcome surprises. However, by being knowledgeable with regards to some of the most common hidden expenses, rental property investors can thus be more prepared in the event that one or more do emerge.
Every single-family rental owner needs a good quality landlord liability insurance policy. But definitely, that doesn’t mean that the policy must be the most expensive one you can obtain. Insurance policy rates can vary widely, as can the quality and reputation of the company offering it. This is why it is very important to shop around before choosing your landlord insurance policy and to check your rate annually for changes. As long as you are not carefully comparing rates and insurance carriers, you may end up paying far more than you need to for your landlord insurance.
A second unwished-for surprise might occur in terms of a property’s utility bills. An energy-efficient property is one that has relatively low energy costs. Nevertheless, new investors may figure out a little late that their brand new investment property is linked with a high energy price tag. Despite the fact that the reasons for this vary, there are multiple ways that property owners may implement to make their rental property more energy efficient. Continuing to keep the house checked for air leaks, aging appliances, and other energy “vampires” can help you get a better idea of where the issues may lie. Replacing weather-stripping, single-pane windows, lightbulbs, and other leaky spots can go a long way to lead towards lower energy costs. Doing merely a few simple fixes and some annual maintenance, you can significantly reduce your rental home’s energy bills.
Erosion Prevention and Repair
All through the first year of retaining a rental property, each new season can bring surprises of its own. Warm spring weather sometimes reveals erosion issues that were not visible in colder months. In these types of cases, the cost of erosion prevention and repair may come as an unwelcome surprise. As soil is eroded from a home’s foundation, water can pool and result in damage. Checking for sure that your rental home has proper drainage and has been thoroughly checked for signs of soil erosion is the perfect strategy to prohibit some other unknown prevention and repair costs.
Even the best single-family property owners may face unexpected legal fees at any moment. Working with tenants is rarely easy, and disagreements can and do happen. Though budgeting for a future lawsuit could be wise, a better way is to bring about what you can to prevent a lawsuit in the first place. Performing regular maintenance on the property and responding promptly to repair requests are among the ideal places to begin. At the same time, ensuring your property is compliant with safety standards, includes basic safety equipment, and has been checked for hidden problems like mold, lead paint, or asbestos is all valid measures to protect and keep yourself out of the courtroom. Following your lease agreement, and encouraging your tenant to do the same, is one other good strategy to avoid tenant lawsuits and keep legal fees at bay.
Inadvertent Appliance Damage
A last and final unexpected expenditure that may perhaps surprise a new rental property owner is how quickly appliances seem to wear out. The cost of replacing major appliances every few years can have any investor feeling sticker shock. The trouble isn’t necessarily that tenants are abusing the appliances, but rather that they may be accidentally damaging them because of insufficient information. Part of the suitable practices to keep your rental home’s appliances running longer and better is to educate your tenants on proper appliance use and care. By prompting them to use the appliances correctly and perform a few basic maintenance tasks, you can significantly extend the life of your property’s appliances.
Now that you know some of the more unforeseen expenses that follow along owning single-family rental properties, you can be better prepared to reduce or avoid them. By being proactive with tenant education, property maintenance, and cost comparisons, you can better prevent any more disagreeable surprises of real estate investing.
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