Tenants are aware of what’s going on in your building more than you are. Obviously, because they live there. As important as it is to maintain your annual rent raises, an annual checkup can be another valuable tool for multi-unit owners. An annual inspection can be done by you, or your property manager.
WHO’S LIVING THERE?
A visit may turn up additional non-paying tenants thus increasing wear and tear on your property and additional utility costs. These additional people may also open you up to additional liability, in case of an accident. Is your tenant subletting a bedroom without letting you know? An annual visit can be an eye-opener.
ANY LEAKS?
Many tenants do not report water leaks. They don’t usually pay for the water, so a leak becomes a low priority. This can cost you thousands over time in additional water bills, possible mold, and other water damage to this and other units. A gas leak could even be more dangerous. How about electrical problems? Illegal substances? Is your tenant using the wrong sources to cover their monthly rent?
BUILDING VIOLATIONS
Are there cars parked that don’t belong? Is a neighboring property using your parking area? Is there damage to the roof, rain gutters, or stucco it could be repaired but will lead to a very expensive bill if let go.
CHECKLIST
It is a great idea to carry with you a checklist for each unit so you can note the condition, occupancy, and needed repairs. Keep these in your files or on your computer to track changes year to year. This is also a good time to check the locks, as tenants often change them. If your key doesn’t work, you can get the tenant to give you a new one. It is quite common for tenants to change locks which could make it very difficult to gain access during an emergency.
Doing an annual inspection lets tenants know that you are keeping an eye on your investment and it may be a good time to deliver your annual rent raise notices. You never know what you will find, hopefully, the building will be in great shape, but it’s good to check up.
What we at PRS PROPERTIES CAN DO. We can discuss with you the current rents in your area and supply you with comparable rental prices for similar properties. Before you hire a manager, make sure the compensation is fair to you! We can also look at your building for changes that might allow you to get a higher value in order to create value without huge expenses for your building. We can help you to get the maximum value for your property, should you decide to sell, or the maximum return if you are planning to keep your building.
We always have many investors who are looking for “as-is” properties and are willing to purchase with low rents, a moratorium, or even with a problem tenant in place. We have put together numerous transactions over the years which involve properties that are not listed for sale. Many investors are in 1031 exchanges and need to identify a replacement property before their 45-day identification period runs out.
Should you decide to put your property on the market, we will put together an aggressive, targeted, and professional campaign to get your property sold fast. We have been doing this for over 40 years, and we will use all the tools available to bring you the most dollars at closing. If you are thinking of selling or are just curious about the value of your property, don’t hesitate to give us a call.
Remember – KNOWLEDGE IS POWER!
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