Seeing as you’re still new to this industry, we’ll cut you some slack. We Buy Fast Houston Houses has decided it won’t go hard on you if you’ve never heard of this term—Deferred Maintenance. Instead, we’ll get you acquainted. We’ll tell you what exactly this terms mean, why it’s so important to real estate investors in Texas, what it’s costing you, and why you shouldn’t let it ruin what you’ve built over the years.
So, without further ado…
What’s deferred maintenance?
In the real estate business, deferred maintenance simply refers to putting off work. We’re talking about putting off any work that your property might need, so as to protect its value, remain function, or feel safe.
You now have an inkling of where all this is heading to, right? We’re talking about that leaky roof, damaged gutter, clogged toilet, and everything else that might make you or your tenant feel like my home is not in the best of conditions.
And no, we’re not trying to call you out. We Buy Fast Houston Houses just wants you to understand why putting such things off is a problem that can snowball into something worse. Besides putting all your tenants at risk, not completing repairs can cost you thousands of dollars in the long run.
Risks of deferred maintenance
- Cash Flow Killer
Ensuring you always hit a high rental cash flow is one of the ultimate goals in an investor’s book. But that’s going to be an uphill battle if you keep on losing money on things that can be avoided. Things like costly repairs.
We Buy Fast Houston Houses has a way of doing things. Before investing in a property, we always sit down and run the numbers. You’ll find us adding the mortgage, taxes, homeowner’s insurance premiums, utilities, and all the other expenses together, because we know we’ll have to pay them using the rental income. We also make sure we leave some wiggle room in our budget to cater for the property’s regular maintenance. That way, we won’t have to panic anytime a tenant reaches out for help.
You should also do that. Budget for your repairs and maintenance and you’ll never have to worry about a reduction in the cash flow.
- Asset Depreciation
Right now those small things might look like “little things” but after a couple of years, when you feel like the time’s right to put the property on the market, you’ll be shocked to learn that those “little things” are the reason why you’ll be getting almost nothing from the sale.
- Legal Repercussions
Your tenant won’t be silent just because they’re living in your house. They know they have the right to feel safe in any property that they’re renting in Houston, Texas. And if they’ve been complaining for a long time, they might decide to take the matter to court.
Key takeaway
Practicing preventive care is the only way you’ll protect your property’s value in Houston, Texas, and make your tenants happy. By the way, you can call We Buy Fast Houston Houses if you need help selling or even buying another property in Texas.