The rental market can be a lucrative market if you know what type of properties to purchase. Many first-time real estate investors are looking to find a great deal and overlook areas of the house that will cost them down the road. If you are looking to purchase a rental property and don’t want to spend a lot on maintenance and repairs down the road check out the following four items.
Air conditioning may be optional in a rental unit, but heat is a requirement, and it can costs you. Budget for annual or biannual maintenance of the system. While it can cost a few hundred dollars, it will help extend the life of the system. If you purchase a rental with an older unit then start preparing for a replacement. Depending on the size of your unit it can cost you $2,500 to $14,000 to replace.
The good news is landlords only have to worry about replacing a roof around every 20 years. The bad news is it can be expensive. When you are in the process of purchasing an investment property consider the age of the roof. Think about how soon it will need to be replaced and what it will cost you. On average, a 2,200 to 2,500 square foot house will cost you around $2,000 – $6,000 just for the supplies and materials if you do the work yourself. If you pay a roofing company to do it for you it will be upwards of $10,000.
When purchasing a rental unit with siding inspect the condition of it. Vinyl siding does not require as much maintenance as wood siding, but can be costly if it needs to be replaced. Cheap vinyl siding will run you anywhere from $6,000 to $8,500 for a 2,200 square foot house. The price only goes up from there. Wood siding does not need to be replaced as often if you properly maintain it, which involves repainting it. Newer paint lasts around 5 years. If you have a 2,200 square foot house painted by professionals it can cost you around $5,000.
As a landlord, you want your rental house to have newer windows. They are more energy efficient and will help lower your bills. If your tenant pays the utility bills this will be a great selling feature for your rental, and if you pay them it will be extra money in your pocket down the road. If you have to put new windows in it can run you $350 to $500 per window, which can really add up.
Don’t be caught off guard with expenses and repairs that are easily predictable when purchasing a rental property. If you already own properties keep an eye on these areas and be saving up so you will be prepared when the time comes. If you are ready to purchase a rental in Columbus OH check out our listings today.