Owning rental property allows you to earn consistent rental income and build wealth for the future. However, it also comes with several routine and periodic expenses. You’ll need to make sure you have a competent property manager taking care of the leasing and management of your Kansas City rental property. You’ll also need to budget for vacancy periods, marketing, and high-quality tenant screening.
Many of your expenses will come from the repairs and maintenance that are required on your rental home. Today, we’re discussing how much you should budget for those repairs and what you should expect when it comes to maintaining your property.
Set Aside a Rental Property Maintenance Budget
Most property managers recommend saving between one and three percent of your property’s value for maintenance. As you know, expenses are going to vary from year to year, and what you spend will often depend on the age and the existing condition of your investment.
If you set aside a percentage in a maintenance savings account one year and you don’t use all of it, roll it over to the next year. This will allow you to continue building a reserve for any surprise expenses or major repairs. When a roof needs to be replaced, you’ll have a healthy amount of money saved to pay for that large expense. If you are consistent in funding your repair account, you will be prepared financially for any of the maintenance that might be necessary.
Routine Inspections Help You Plan
We recommend you have your property inspected periodically, either by a professional Kansas City property manager or a licensed home inspector. These inspections will tell you what types of large ticket items may be on the horizon. You’ll know when to expect roof repairs, HVAC systems, and new appliances. These inspections will also help you address any unreported or deferred maintenance that needs immediate attention. Routine inspections allow you to budget, and they also protect the condition of your investment.
Pay Attention to Regular and Preventative Maintenance
Emergency maintenance issues will always inspire a sense of urgency. When you get a phone call that the water heater is leaking or a tree has fallen through a fence, you take care of the problem right away.
Give the same careful attention and responsiveness to routine maintenance. Put together a preventative maintenance plan so you can keep everything in good shape. When you’re attentive to small things, you can prevent large disasters and unexpected costs. Seasonal maintenance is especially important in Kansas City. Schedule fall and spring inspections and service calls for all appropriate items like your heating and cooling systems, the cleaning of your gutters, and checks on appliances and structural items. Seasonal maintenance provides great opportunities to look for leaks, wood rot, and other potential problems.
This type of maintenance can be taken care of by a good Kansas City property manager. Be sure to discuss a maintenance program with them so that you aren’t taken by surprise by large unexpected repair bills. If you’d like to hear more about how we keep maintenance costs down, please contact us at Key Partners Property Management Group.