Does Your Investment Need An Upgrade? Your Property Manager Has the Answers
It is always my advice to investors to choose to buy brand new single-family homes to secure their financial future. This makes the most sense within the context of our tremendously successful Remote Control Retirement Riches formula for a number of reasons. For one, a nice looking new home with brand new everything will fetch you good rent. Secondly, single-family homes are what people are looking to rent these days, with a yard, maybe a home office, in a nice neighborhood and a place to raise a family. And then there are other benefits…
No need for home improvements.
Another great benefit of investing in a brand new home – it is a new house so by extension everything in it is new and shipshape. Amenities and appliances are not out of date. Nothing is broken and things don’t need repair or maintenance. So in my experience, 95% of the time, there is no need for an investor to spend time and effort in home improvements before renting it out.
That said, it is important to note that there are times when the builder may not include certain items in the total sale price that has been negotiated. This can differ from place to place and even builder to builder. For instance, in Tulsa, it is common for the builder not to include fencing of the home that they sell. In other places, blinds may not be included. In such cases, it then becomes necessary to make some minor additions or alterations to a new home prior to renting it out.
Rule of thumb – ask the property manager.
In the event that you are re-renting your property after a tenant vacates it, some improvements could be needed. If, for instance, you’ve had a good, steady tenant for several years, there is bound to be some wear and tear, and a few repairs needed here and there. In this case, it may be necessary to maybe repaint the home or have it deep cleaned or make a few repairs.
The thing to remember is that there is always help at hand. Your property manager is the person with market insight and local knowledge. They are the ones to help you when you're in doubt. They will tell you what expectation a tenant may have and whether it is a reasonable one to fulfill. They may advise you that by making a few modifications you could expect a higher rent. Or they may suggest, say, steam cleaning the carpets after one tenant leaves and before the next person takes over the house.
These are some of the things that we will discuss in our upcoming property expo. At this event, we will also be having some experts over to explain aspects of asset protection or insurance, what is advisable, and why. We plan to cover several such aspects of real estate investing, which current investors as well as would-be investors would find educational. Visit ICGRE Events to know more and register for free.