5 Ways You Can Effectively Curb Property Maintenance And Repair Costs

By Author: James Kobzeff
Total Articles: 44
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Real estate investment involves acquisition, holding, and sale of rights in real property with the expectation of using cash inflows for potential future cash outflows, thereby generating a favorable rate of return on that investment.

In other words, real estate investing is the act of buying real estate in order to make a profit and acquire wealth and real estate investors invest in real estate to make money, bottom-line.

Consequently, it is essential for rental property owners to reduce and eliminate money-wasting property maintenance and repair expenses whenever possible. It's one thing to collect substantial rents, but landlords who ignore maintenance and repair costs can find that their cash flow is lower than expected and their profits bitterly disappointing.

So it seemed appropriate for us to consider five ways landlords can curb maintenance and repair costs in an attempt to increase the profitability of their real estate investment business.

1. Buy low-maintenance properties. This might seem obvious, but real estate investors sometimes purchase investment real estate strictly on the basis ...
... of price or curb appeal (with no regard for maintenance). Always prefer properties that are constructed with materials and fixtures that require less maintenance, and are built to last with minimal care. The same applies to yards, shrubs, and landscaping.

2. Stiffen your tenant selection. Apartment buildings are not the only part of your investment that is low and high-maintenance. There are also low-maintenance and high-maintenance tenants, and the idea is for you to avoid high-maintenance tenants and select low-maintenance tenants. Watch out for chronic complainers and people who show no "house sense." You might be surprised to find that you can eliminate up to one-half of your maintenance, repair, cleaning, and wear-and-tear costs simply by selecting tenants who demonstrate personal responsibility. Bear in mind that things seldom break by themselves and toilets do not just stop up and overflow.

3. Engage sound repair clauses. A good way to promote tenant responsibility is to shift the first, say, $100 of every repair cost onto your tenants' shoulders. You might also want to favor high security deposits.

4. Enlist a handyman. Build a relationship with a person on whom you can regularly depend and trust. You will discover less of a drain on your time and pocketbook when you are able to employ the services of a trustworthy and competent all-around handyman (or persons) to take care of your rental property.

5. Continue preventive maintenance. Apply the same principle to your rental properties that you would to your car. Anticipate and alleviate repairs when the cost is relatively small and always ask your maintenance experts how you might replace high-maintenance items with low-maintenance items.

Hopefully you discovered something in this list you can utilize to reduce maintenance and repair costs associated with your own investment real estate. If so, put it into action and start increasing your profits immediately. Here's to your real estate investing success.
James Kobzeff is the developer of ProAPOD - leading real estate investment analysis software since 2000. Create a real estate analysis in minutes! Go to => www.proapod.com