4 Important Details Often Overlooked By Property Investors

Buying rental property is a smart move, but there are often important details that investors overlook. If you’re a property investor, make sure you account for the following details to make your job easier.

Window washing on multi-family buildings

If you’re buying multi-family properties, like apartment buildings, you’ll need a plan for keeping the windows clean. This is a detail many investors don’t think about until they realize the windows are dirty, and it’s not a small task.

Sometimes, the seller will give you the contact information for the service professionals they’ve been contracting, and in that case, window cleaning will be easy. You can just keep using those services until you find someone better. However, be prepared to find your own window washing service if you don’t like their rates or work.

Regular window washing isn’t something you want to skip. In fact, the more frequently you wash the windows, the better. Dust, debris, pollen, and air pollution can quickly build up on the windows and cause the glass to deteriorate fast. This is a big problem in areas like Los Angeles, where the smog levels are high

Hidden water damage

When you get an inspection, it might not reveal the entire situation regarding water damage specifically. Most of the time, it won’t take long for water to drip down through the ceiling and become visible. However, sometimes the water doesn’t move into an area that is visible. It can collect on the sheathing in the roof and rot the plywood without ever dropping through the ceiling or walls.

Whenever possible, get your own roof inspection from a professional roofing company to look for potential leaks that may have gone unnoticed by the inspector. Try to include a clause in the purchase agreement that will have the seller be responsible for any and all repairs resulting from existing water damage you discover within the first 30 days after the sale. That way, you won’t have to spend tens of thousands of dollars to fix issues that should have been handled by the seller.

Existing tenant problems

If you’re inheriting tenants, you may want to find out if there are any major issues that exist, like feuds between neighbors, tenants who perpetually pay rent late, people known to sublease against their lease, or people who break lease agreements for common areas, like smoking in the hallways or laundry room. You need to know what problems you’ll be inheriting if it’s possible to get that information.

You can always ask tenants if you see them walking around the property. They might not always be willing to talk, but some might love the opportunity to spill the beans about what goes on around there. It’s worth enduring the gossip to try to discern the tenant dynamics so you can be a little more prepared once you own the place.

Being a landlord

The number one thing investors often fail to prepare for is being a landlord. Yes, you own the property and that’s great, but you have to run it professionally according to federal, state, and local laws. This means you’ll need to know landlord-tenant laws and have a system for managing tenants. It’s much harder than it seems.

As a landlord, you’ll be responsible for collecting rent, screening new applicants, hosting tours, completing repairs in a timely manner, performing maintenance and regular inspections, fielding emergency calls at all hours of the day and night, filing eviction lawsuits, giving notices to tenants about lease changes, complying with reasonable accommodation requests, and more.

The nature of being a landlord is too much for most investors, which is why they hire a property management company to take care of everything. A professional property manager will take care of your tenants and your physical property while making sure all landlord-tenant laws are followed to the letter. They’ll also have an attorney on retainer that they can consult at any time to resolve issues fast.

If you’ve never been a landlord before and you aren’t familiar with what it takes, it’s best to hire a professional property manager. The learning curve is steep and it’s a stressful job.

Owning rental property is a worthwhile investment

Despite all the challenges of owning rental property, it’s worth the time and effort because it will be a great source of passive income in the long run. Just be sure you have a plan for handling the unexpected issues that will inevitably arise, and always consult an attorney before making any big decisions.