The main consideration during the rental property purchasing phase is location. Yet, the priority after acquiring and renting out a Troy MI investment property is planning. As a leading property management company in Troy, Michigan, we advise the following:
- Plan for maintenance expenses. We advise our clients to expect the unexpected. We teach them to expect maintenance expenses equivalent to approximately two months’ worth of rent per year. By planning for maintenance/repair costs, those costs won’t be so overwhelming when the need arises.
- Plan on things breaking. Appliances, faucets, water heaters, heating and air conditioning units—these things deteriorate over time.
- Plan on tenant turnover. If tenants stay satisfied, they may not leave for some time. But, even the most satisfied tenant won’t stay for eternity. Life changes occur. Tenants may purchase their own home, have employment or schooling changes, or outgrow the home.
- Plan on repeating the process. Every time a tenant leaves, you must prepare your Troy MI investment property to welcome a new one. Costs will vary, but might include new paint, new carpet, bringing the home up to code if needed, and making any repairs that result from normal wear and tear.
As the famous saying goes, “If you fail to plan, you plan to fail.” Failure should not be part of your plan. Plan maintenance costs beforehand and be proactive about problems once they emerge. Planning propels you towards the road of success in real estate investing.