Turning a profit in a rental property in San Diego County can prove challenging for some landlords. From mortgage payments to marketing expenses, the costs can add up quickly. If you don’t stick to a careful budget, you could find yourself losing money on your property. Maintenance costs represent perhaps one of the greatest expenses of all. Protect your bottom line by taking steps to keep your maintenance costs manageable. Use the following keys to make sure you’re on the right track.
Take a Proactive Approach to Upgrades
Maintenance calls often increase as age takes its toll on a rental home. At RPM, we heartily recommend taking a proactive approach to upkeep and improvements of your property. By investing in new appliances and updating outdated fixtures before a problem occurs, you can save yourself money in the long run.
For example, if your rental home has an extremely old dishwasher, the unit is likely inefficient and unattractive. Replacing the unit may cost a few hundred dollars, but if the appliance were to fail and leak, you could have a much larger repair bill on your hands. At that point, you’d need to replace the dishwasher and address any damage caused by the leaking water, which could include structural damage to your home.
Save for a Rainy Day
At one point or another, most property owners will need to pay some hefty repair bills. A stroke of bad luck could leave you facing multiple appliance upgrades, repair bills from a natural disaster, or damage from a fire. We take steps to safeguard against these calamities, but you should always put aside funds to utilize for future repairs.
We recommend placing a portion of your earnings in a savings account each month. By carefully managing your income, you can create a cushion that will save you plenty of stress and heartache down the road. Should extensive problems arise, you can tap into those funds, instead of racking up debt on credit cards or seeking out a loan from a lender with high interest rates.
Develop an Efficient Maintenance Plan
If you’re handling property management without the help of a professional, you could quickly find yourself spinning out of control. Factor in the costs of labor and materials, and your maintenance bills can skyrocket. Even if you’re trying to handle the maintenance responsibilities of your home solo, you’ll likely need to invest several hours each month visiting the property and taking care of various tasks.
Of course, we always advise working with a professional management firm. Our in-house Maintenance Supervisor works diligently to keep costs low and identify red flags that should be addressed immediately. Instead of working with pricey contractors, we handle the bulk of our repairs internally, resulting in lower overall costs.
Even if you do choose to go the DIY route, you should try to establish a network of trusted vendors to service your property. By working with the same trusted partners, you can often negotiate lower rates.
Ready to experience a different side of property management? Entrust your portfolio to our team of capable experts and we’ll address the challenges of your home for you. Call us today to learn more about our property management solutions in North San Diego: (760) 434-1791.
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