Not all investment properties are "ready to rent" immediately after purchase. For most traditional property purchases, an investor has to spend the time finding a suitable property, then invest further in rehab to get it ready for tenants. It can be a long, expensive process that delays the start of seeing a profit on your latest property.
When you're a serious property investor, you know the value of acquiring new properties that can hit the rental market fast. When you work with an expert property manager in McKinney, you can prepare your rental property without the hassle of finding an ideal property in an ideal market and renovating it alone.
Here's how taking advantage of property investing paired with expert property management can grow your wealth efficiently—and quickly!
Time Is Money
When preparing a home as a rental property, landlords have to follow state and federal regulations to make sure a property is legally fit for tenants. What might work for your home might not meet the requirements for the Implied Warranty of Habitability as a rental property.
Depending on the condition of a recently purchased rental property, it can take significant time and work to rehab. The more work involved in the rehab, the longer your property sits empty.
- Each month of vacancy costs you money.
- You're still the one paying the mortgage payments, utilities, insurance, and other costs involved with owning a home when it's vacant.
Until your property is ready for a tenant, your investment is effectively in the red. However, you can't rush through the work a property might need to become a suitable rental home. However, when you work with a property manager in advance, you’re less likely to pick an expensive money sink.
What's Involved with a Property Rehab?
Some properties just need a little TLC; other properties need a complete overhaul to prep them for renters. From significant structures to small details, a quality rehab means working through every aspect of the home to make sure it's safe and appealing to potential tenants.
1. Significant Structures
It's better for you and your tenants to make sure critical structural elements are sound and in good working order—both inside and outside of the rental home—before your property hits the market.
- Foundation and roof: The top and bottom of the home protect your tenants and the rest of the house. In the McKinney area, many homes are victims of weather-related roof damage and shifting foundations. If your new rental property needs a new roof or foundation work, do this before you place tenants in the property. If you can avoid a property with roofing or foundation damage altogether, that’s the ideal.
- Air-conditioning, heating, and water heater: These critical appliances must be in excellent working order. Tenants need to be able to keep cool in McKinney, and they need dependable hot water. Replace these major appliances while your property is vacant.
- Plumbing and electrical: An electrical fire or significant plumbing issue can impact the safety of your property. Plus, it's expensive to recover from a fire or flooding. A thorough rehab confirms all wiring and plumbing is up to code and works without issue.
- Fences and decks: Checking the structural integrity of fences and decks is part of the property rehab. Before your rental is ready for tenants, make repairs and do some serious investigating.
Significant structural components can require a lot of time and money to repair! The rehab process tackles these areas first, then moves to other interior and less structurally-significant renovations.
2. Everything Else
From floors to ceilings and everything in between, your rental property rehab must include every detail.
- Do you need to replace the floors?
- Does the kitchen need new countertops and appliances?
- Do the bathrooms need a renovation?
- How many rooms need fresh paint and window coverings?
- Does the home have a security system?
- Do you need to improve the landscaping and curb appeal?
With everything involved in the rental rehab process, it's not difficult to see why it can be discouraging to investors to add more properties to their portfolios. Fortunately, there's a better way to grow your portfolio and see a quicker return on your investments.
Pluck Ideal Rentals with Property Management
Investors skip the time and expense involved with everything we just mentioned about the rental rehab process when they choose “safe” investment properties from the start. Half the battle is fought when you pick properties to invest in that grow your wealth without major renovations—even when a “fix and flip” approach to renting seems like a bargain.
We've learned what makes an excellent rental property through our experience as an expert property management company in McKinney. Using our local rental market insights, RentHub Property Management can guide you on which homes to purchase that make prime rental properties.
We can also help you identify properties that would be ideal after a few minor upgrades—like smart home features—to get these properties rental-ready quickly. When you purchase rental properties in McKinney under our guidance, you have another crucial component already in place: expert property management.
We know rental properties and property management. Everything we do is ready-made for investors to help you grow your wealth for the long-haul. Let RentHub Property Management show you how easy it can be to add your next investment property!