Inspections save you money.
They will save you money in the long run and potentially keep your asset from burning to the ground. Time and again I see investors who manage their property avoid doing inspections. Probably the number one reason is because they are afraid of what they may find!
Here the top 4 reasons on how inspections save you money:
- Hoarders Will Destroy Your Property – All those boxes of garbages are just the tip of the iceberg in destroying your property. Lying beneath all that debris are filthy carpets and roach eggs. The cost to rehab the property gets exponential over time.
- Hoarders Are A Fire Hazard – All that debris accumulates and becomes a tender box. Your insurance company will compensate you for your house being burned to the ground but they won’t come close to compensating you for all the revenue lost and the deductible you have to pay.
- Tenants Are Clueless – You would be surprised at how many tenants don’t look under the sink or check for leaking angle valves. A leaking angle valve can cost you thousands of dollars in replacing floor joists and sheet rock.
- Air Filters – Constantly reminding your tenants to replace air filters will make your HVAC last longer. In Las Vegas, HVAC units are under tremendous strain to keep up with cooling a property. When you remind tenants to replace filters, you will save a lot of money in HVAC repairs.
When you get a tenant who is not taking care of the property, do not renew their lease. 30 days prior to their lease expiring, give them a “30 day no cause” posting. By law, you do not have to give them a reason. In fact you don’t want to give them a reason as they be able to use that in court. If they insist on a reason, you can respond with “I have other plans.” You do not want to respond with “You are a piggy and you have to go.”