The two primary expenses that are commonly incurred with rental property are an empty unit and maintenance. Maintenance is all a part of owning rental property and companies that specialize in rental management in El Segundo have figured out ways to keep it to a minimum. Needless to say, selecting conscientious tenants is one big plus, but even the most careful tenant can’t stop the annual overhaul of the air conditioner or the plumbing system that springs a leak. Here are a few things that, as a rental property owner, you should know about expenses.
Plan for them: Rental management in El Segundo has years of experience, and they estimate that the average annual maintenance expense will be approximately 1 ½ months of rent, higher for older properties, less for newer properties. These expenses are to be expected annually while the tenant remains in the residence. They do not include the costs to make the unit ready for a new tenant. Carpet cleaning, painting and repair are extra. Expect these expenses and budget accordingly.
Satisfy your tenants and keep them for a lifetime: A good tenant is almost a guarantee of lower than average maintenance costs. When you attend to the property and look after all repairs in a professional and timely fashion, you not only are creating tenant satisfaction, you are also encouraging the tenant to care as well. On the other hand, a failure to fix reported repairs results in tenant dissatisfaction and probably higher repair costs when the repair is eventually done. This attitude certainly does not breed tenant satisfaction, and they will move at the end of the lease. When this happens, you lose rental income while the property remains empty, and the turn-over costs are higher than need be.
Respond promptly: The tenant has every right to expect that the property he is renting is fit and suitable for habitation. They can expect a safe unit where the water, plumbing, electric, roofing, etc. function well. When a tenant is denied the comforts of air-conditioning, water-on-demand, etc. he is justifiably angry. By attending to problems quickly, most tenants will forgive the imposition. If, however, the maintenance is neglected and things break down frequently the tenant will not renew his lease and once again, turnover expenses are in the offing.
Turnover maintenance: To get a vacant property “rent-ready” costs on average $800. These costs include carpet cleaning, landscaping, appliance servicing, interior painting and ensuring proper function of the plumbing and electric. In many areas, it is mandatory that the property be re-keyed for security reasons. With expenses like this, plus the lost rent, you can quickly see why happy tenants are a valuable commodity.
California Coast Real Property Management provides superior rental management in El Segundo. Their experience can help you keep your cash flow positive and the return on your investment high. Contact them today to discuss your property plans, call 310-535-2150
