“Everyone is a buyer, everyone’s a potential purchaser and everyone’s a potential vendor.” Joe Hockey

As a housing provider, you will be called on to do all types of repairs to your properties. Do you have a good and current list of vendors at your disposal?

RIGHT PERSON FOR THE JOB – I have a number of vendors that I personally use. Some are handymen and others are licensed contractors. Of course, it is usually best to have all your repairs done by a licensed contractor, but many times the cost can be prohibitive. If you are making changes on your property, such as adding a unit, removing a wall or replacing an electrical panel, you need an expert. Everything needs to be done to current code and if you do things incorrectly and there is an accident, you could be accountable. Codes change all the time and a licensed contractor is responsible for having the latest info. While trying to save a few bucks, you could open yourself to a potential rebuild. A rebuild could cost a lot more in time and probably in lost rent, if the unit is unavailable. You could even be liable for paying for a tenants housing during the repair period.

PAINTERS AND HANDYMEN. There are lots of unlicensed people you may well be using, from landscapers to painters to cleaners. It is similar to choosing a new tenant. You should look at some previous jobs and, if possible, talk to other clients. In my case, I usually find my vendors from word of mouth from other housing providers or friends. I am always looking for good referrals from people I know, because your current vendors may move away or retire or for some other reason, get out of the business. This is especially true of handymen, landscapers and painters. They often are hired by a larger company for more stable hours and income. My general contractor is a family member, but it is always advisable to have some names and numbers of other good vendors in case yours are unavailable or busy at other jobs when you need them.

LIABILITY. Always make sure you have adequate insurance for anyone who is working on your property, as you would for your tenants. If you are not sure, talk to your insurer or your real estate attorney, to make sure you have the correct paperwork. Incidentally, the insurance broker that I have worked with for several years, was a referral from a former client.

In short, never stop building your vendor list. It is a valuable asset for your business.

“Action speaks louder than words, but not nearly as often.” Mark Twain

What we at PRS PROPERTIES CAN DO. We can give you a good idea of the current value of your building. We can suggest changes you might want to make before sale to give you an idea what type of building you would be able to exchange into. You may decide to stay in the rental business or you may want to move into a more passive real estate investment, such as a triple net or a DSL.. We are always available to chat. We can give you referrals for professionals, such as lenders, contractors, and engineers, so that you can decide who you feel best with. We can supply you with rent and sale comparable in the area of your properties, so that you know what rental values are in your area. It is important that you know the true value of your rental units, so that you can get them rented right away at market value, or at least as much as possible with rent control restrictions. We can look at potential purchases that you may be interested in to make the property more desirable, and maybe look at potential issues that an insurer might require you to repair.

If you should decide to sell your building, we can help you exchange into a larger or smaller properties. We can even help you move into something with less management responsibilities. We can also help with getting the paperwork together for a refinance if that is your desire. We can also recommend experienced licensed contractors who can perform any repairs or installations you may need prior to selling. We can also look at your building for other easy and inexpensive changes that might allow you to get a higher value. 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 are currently looking for “as-is” properties and are willing to purchase with low rents, deferred maintenance or even with a problem tenant in place. We can offer a 7 day escrow and all cash at closing. Give us a call. We have also put together numerous transactions over the years which involve properties that are not listed for sale. Many investors are currently 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.