We work with a lot of investors, both local and out-of-town, and many rental properties we list have issues that you don’t normally find in owner-occupied homes.  Following are a couple of tips to help control long-term, costly repairs and two more every investor should keep in mind.

• Lay eyes on your property at least once a year. Even if you have a rental company managing your investment, there is no substitute for being able to see the condition of your property yourself.  We’ve worked with many investors, who upon deciding to sell, are shocked at the condition of the property.  Going in (with proper notice as required by law) and changing the air filters or batteries in the smoke detectors allows you to make sure there are no unauthorized pets and check in on how the tenants are treating your investment.
• Have a home inspection done every 3-5 years. For a few hundred dollars, you get the peace of mind that comes with a professional crawling around under your house and checking every nook and cranny to make sure problems aren’t creeping up.  The old adage “an ounce of prevention is worth a pound of cure” rings true with rentals.  We recently listed a property that needed $15,000 worth of work done in the crawlspace because the owner was unaware the HVAC was leaking underneath the house, which led to wood rot, structural problems, and rampant mold issues. Nipping that in the bud sooner rather than later would have saved that investor a lot of money.
• Check in with a realtor to do a market analysis every few years. A rental property is an investment with a value that fluctuates based on the real estate market, and it’s always a good idea to know how much your investment is worth.  If the market is slow, holding on to the property and continuing to rent may be your best bet, but if the market is hot, it could be worth it to cash out and take the gain.
• Keep tabs on your CAP rate in comparison to the rent you’re charging. Rental rates seem to go up daily in Charlotte, so investors should make sure they are getting the most out of their properties. Landlords often don’t want to raise rent if they have a good tenant in place, but we’ve seen situations where that has actually been a detriment to the tenant.  We sold a property last year where a wonderful, long-term tenant had lived for ten years.  She paid on time every month and took care of the home, so the owner kept her rent the same.  When he decided to sell, she was shocked that she was unable to find a rental in that price range.

Real estate can be a fantastic investment, but needs close attention just like any other. We specialize in selling investment properties for local and out-of-town property owners, so if you’re considering selling your investment property, give us a call.