How to Avoid Buying a Rental Property That Is Hard to Manage
Multiple story properties damage lower units when a big water leak occurs., Flat roofs only last 1/3 the time of inclined roofs., Avoid major streets and allies., Large units have higher utility bills and more maintenance., Small units like singles...
Step-by-Step Guide
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Step 1: Multiple story properties damage lower units when a big water leak occurs.
Coordination of repairs in multiple units is a headache that can be avoided by buying single story properties.
Multiple story properties also need exterior stairs replaced when weathering and wear and tear occur. -
Step 2: Flat roofs only last 1/3 the time of inclined roofs.
Flat roofs are walked on by cable company installers and children that go up to get their toys.
This damages the roof and it will not last as long as an inclined roof.
Water collects on a flat roof and leaks are more common. , Noise on major streets cause tenants to move more and people tend to sell drugs in allies.
The noise and drug problems cause more turnover.
If you buy a property on a major street, in the next few years, a bar or liquor store might open up on the same block and this attracts people on drugs that cause more turnover. , Avoid buying properties where you pay the tenants electricity and gas.
If you run an ad a little bit more and advertise that utilities are included, you now have a unit that is priced higher than the going rent and it makes vacancies longer to rent. , Many banks will not loan on smaller units because they are hard to rent in recessions.
Banks prefer to rent on larger units or units that have a variety of sized units.
When I have had a tenant want to move because they want a larger unit, I talk them into waiting until a larger unit becomes available, this way I can keep good tenants.
When a tenant that lost a roommate wants a smaller unit, I can talk them into staying if I have a unit available or becoming available. , Properties on hills have more slippage of dirt and foundation slippage is more common with water problems.
A big water leak will fill up a basement with water and will also cause a foundation to slip. , When you have a desirable location, many times the friends of tenants will ask the property manager when another unit will become available.
If the rent is low, I have had tenants take the unit the day it became available and paint it themselves.
This way I have no loss of rent.
This is a big plus if you have a low rent but the area must be very desirable. -
Step 3: Avoid major streets and allies.
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Step 4: Large units have higher utility bills and more maintenance.
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Step 5: Small units like singles
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Step 6: studios and bachelor units have more turnover
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Step 7: especially during recessions.
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Step 8: Avoid properties on hills and with basements.
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Step 9: Buy properties with a view or in in nice residential area.
Detailed Guide
Coordination of repairs in multiple units is a headache that can be avoided by buying single story properties.
Multiple story properties also need exterior stairs replaced when weathering and wear and tear occur.
Flat roofs are walked on by cable company installers and children that go up to get their toys.
This damages the roof and it will not last as long as an inclined roof.
Water collects on a flat roof and leaks are more common. , Noise on major streets cause tenants to move more and people tend to sell drugs in allies.
The noise and drug problems cause more turnover.
If you buy a property on a major street, in the next few years, a bar or liquor store might open up on the same block and this attracts people on drugs that cause more turnover. , Avoid buying properties where you pay the tenants electricity and gas.
If you run an ad a little bit more and advertise that utilities are included, you now have a unit that is priced higher than the going rent and it makes vacancies longer to rent. , Many banks will not loan on smaller units because they are hard to rent in recessions.
Banks prefer to rent on larger units or units that have a variety of sized units.
When I have had a tenant want to move because they want a larger unit, I talk them into waiting until a larger unit becomes available, this way I can keep good tenants.
When a tenant that lost a roommate wants a smaller unit, I can talk them into staying if I have a unit available or becoming available. , Properties on hills have more slippage of dirt and foundation slippage is more common with water problems.
A big water leak will fill up a basement with water and will also cause a foundation to slip. , When you have a desirable location, many times the friends of tenants will ask the property manager when another unit will become available.
If the rent is low, I have had tenants take the unit the day it became available and paint it themselves.
This way I have no loss of rent.
This is a big plus if you have a low rent but the area must be very desirable.
About the Author
Sara Diaz
Brings years of experience writing about crafts and related subjects.
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