Livermore, CA, is a hot real estate market. 28 percent of residents are renters, and the average rent is $4,098, according to Neighborhood Scout.
Rental property investors like you are probably reaping big returns. Investing in rental real estate is typically a smart move, but one of the secrets to success is proper property maintenance.
If you're one of those landlords who slack on maintenance, you're shooting yourself in the foot. In this article, we're unpacking a couple of big benefits of investing in routine property maintenance.
1. Ensure Legal Compliance
As a landlord, you're legally required to ensure your property is habitable (doesn't pose any health/safety risks to tenants) at all times. This includes ensuring common areas are in good working order and performing plumbing and HVAC repairs as soon as possible.
As such, keeping your property properly maintained will significantly reduce your liability risks. If a tenant or worker is injured on your property because they fell on a defective staircase, for example, they can sue you for compensation.
Fighting cases in court costs money and such a reputation can make insurers increase your landlord insurance premiums.
2. Greater Tenant Satisfaction
Happy tenants, happy landlord.
It's not rocket science. If your tenants are satisfied and happy with your services, they'll do their best to pay rent on time and take good care of the property. What more could a landlord ask for?
With routine maintenance, you'll identify small issues and fix them before they become bigger issues that can affect your tenants' experience. For example, you can easily catch mold growth before it spreads, posing a health risk to tenants.
High levels of tenant satisfaction go a long way in keeping your occupancy rates high. They'll leave positive reviews for your property on review sites, making it more attractive to people who're looking to rent.
3. Property Value
Buildings that aren't cared for don't hold value well. As a property investor, you don't want depreciating assets in your portfolio. The good news is proper maintenance helps maintain, and even increase, property value.
Maintaining rental property value is important for a couple of reasons.
First, you will make a profit (capital gains) if you sell the property down the road. Second, you can use the increased equity to get equity lines of credit. And thirdly, increased property value is a justifiable reason to make a rental increase.
4. Save Time and Money
Routine maintenance costs money, but do you know what costs even more money? Overlooking routine maintenance.
Left unattended, small issues that could cost a few hundred bucks to repair will morph into major repairs with a hefty bill. Some repairs that could have taken a few hours to complete may end up needing several days, much to the inconvenience of your tenants.
Routine Property Maintenance Is a Key Part of Property Management
Routine maintenance isn't a glamorous responsibility, but it's the one that keeps the rental check coming in every month. You can outsource it to a company that provides property maintenance services, or hire a full-service property management company.
Visit us at PMI Alameda County and let's look after your property.