Have you ever wondered why the lowest bid for repair work isn’t really the lowest cost option? If you want to make money from your real estate investments, price isn’t the most important factor.
If you have any real estate investments at all then you know the fastest way to lose money on them is to have them sitting empty. You continue to pay the mortgage, but the property contributes nothing to your cash flow.
Our job as your property manager includes keeping your property occupied with paying tenants. We want you to benefit as much as possible from your investment.
We keep your property occupied and your income flowing in many ways:
- Finding qualified tenants
- Avoiding lawsuits by making sure you are complying with all applicable laws
- Making sure your property is in a condition to be occupied
Keeping Your Property Fit to be Occupied
The laws require property owners to make sure the property adheres to minimum standards, such as:
- Properly functioning heating and electrical systems
- Clean running water systems
- Clean upon move in
- Structurally sound
Most real estate investors understand this, but sometimes we come across the problem of repairs.
You Get What You Pay For
When you get quotes for repair work, one of them is going to be the lowest, but it may not be the best. The lowest price may be the lowest for several reasons. For example:
- The service provider may be inexperienced
- The service provider juggles too many jobs at once
- The service provider lacks the proper licensing
These aren’t the only reasons the lowest bid might not be the best. We have a team of carefully selected on-call contractors we can trust to do the job right the first time.
Inexperienced and over-committed service providers take longer to finish their work and as long as the work is incomplete, you aren’t getting the rent. Whether that’s because the property is not in a condition to be rented or because the tenant has the right to put the rent in escrow, the result is the same.
How to Be Ready for Repairs
Some property owners believe that home and appliance warranties will cover repairs and sometimes they do, but paying insurance company premiums isn’t the most cost effective way to be ready for repairs.
First of all, warranties expire and appliances are notorious for breaking just after the warranty ends.
The best way to be ready for repairs is to simply put a portion of each rent payment into a separate account. When a repair is needed, money is available and you don’t have to lose time and payments by choosing the lowest bid.
Our job as your property manager is to make the most money possible for you from your investment. Trust us. We work with properties and service providers every day. We are your advocate and want you to have the best experience possible as an investor.