Why You Should Be Checking on Your Investment Properties
Your investment properties should be just that… investment properties. They should be making you money without having to worry, costing more than what your repair allowance for the year is. I wrote this post to remind my readers how important checking on your investment properties is because after all, its your money!
Checking on Your Investment Properties
You should drive by your rentals properties every time you are near the neighborhood, day and night. It is ridiculous how many landlords refuse to make a simple detour, even when they’re close, to just ride by and look at what’s going on with their money. I’m not saying you should stop and knock on the door but a lot can be discerned from a simple drive-by.
People have a tendency to do one thing the way they do everything. The yard looks like a mess? Then it’s a good indication the house inside looks a mess. If there are broken down vehicles in the driveway, then it’s possible your appliances are suffering the same circumstances.
If these things are present then you might want to schedule regular inspections of the property. You could disguise these visits as routine maintenance visits, air conditioner and/or appliance servicing, etc… All said, that’s exactly what they might end up being.
Checking on your investment properties with a simple drive by could also reveal the kind of activity going on, not only in your house, but in the neighborhood. You have a vested interest in the neighborhood by way of the value of the property you are renting. Pay attention to this activity because it will affect the amount of money you will be getting for your rent.
If you notice the neighborhood going downhill, it might be a good indication you cash in and get out. Not everyone is cut out to deal with unsavory tenants in bad neighborhoods. A property management company could help with that but they cut into your profit – be sure their cost is factored into your rental price.
Speaking of property management, not all managers are cut of the same cloth either. Many will either over charge you for management or for repairs, either real or imagined. Screen them and ask about their track record. Speak with investors or landlords who use them about their experience with them.
If your property is already in a war zone or high criminal activity area, it might be a good enough reason for eviction if you recognize these activities going on at your property. This could save you a lot of money in the long run. Meth houses end up being condemned and cost a lot of money to get back to rental standards. Make sure you have a “no criminal activity” clause in your lease agreement.
There are many tools you can use to screen your tenants. Background checks, credit checks and more. But not many tools are available to know how people live.
All in all, I hope you have screened your tenants well and have good ones. But if not, checking on your investment properties with a simple drive-by will reveal a lot about who you have in your investment property. If they are taking care of your property then you should be taking care of them. Good tenants are an investment in your investment.
Bottom Line: drive by your investment property often, know whats going on with your money, and as always, Happy Investing!