One of the most effective ways Rexburg property managers improve passive returns is by providing preventative interior inspections of each rental unit on a regular basis.
With the recent COVID pandemic and Idaho stay at home orders, inspections have become difficult. Property management firms have been ordered to provide only necessary repairs related to health and safety. This has created an additional hurdle in protecting Rexburg properties from loss because property managers have not been able to inspect them.
Property Management Reopens
The governor of Idaho has outlined a reopen plan. Property management has now been given the go-ahead to maintain properties as normal. This means in Rexburg, property managers can finally get in properties and do inspections.
Covid has created a lot of fear for one’s safety. Rexburg residents are feeling nervous about having people come into their homes for inspections. In order to reduce the risk of spreading Covid, inspectors will be provided with masks to be worn inside homes.
How do inspections protect my Rexburg property from loss and increase ROI?
- Identify Pet Damage: Inspections identify whether a pet is causing damage or if there is an unapproved pet present. This substantially reduces the amount of damage and can be a deterrent for residents that may consider breaking the rules of the lease and having a pet.
- Unapproved Residents: Screening is completed on all residents before they move into a property, however, unscreened occupants pose an unnecessary risk for your Rexburg property. These unscreened occupants must be screened and approved or removed from the property.
- Identify Tenant Damages: At times, even well screened residents damage the property. Inspections identify that damage. Repairs can be scheduled and the resident can be charged for the damage. This is a great way to maintain passive ROI for your real estate business by ensuring you aren’t saddled with expenses caused by tenants or others.
- Identify Other Damages: The cost of damages can be greatly reduced if issues are caught early. This is especially true with minor water leaks. Identifying damage early reduces expenses, which keeps your money in your pocket. In addition, well maintained properties have higher rents and lower vacancies. With typical vacancies costing around $30/day, EVERY DAY COUNTS.
- Identify Lease Violations: Some lease violations do not actually cause damage to the property, but lease violations can be highly correlated with other issues with the performance of your property. When renters are kept accountable for breaking rules they are less likely to break other more costly rules.
- Identify High ROI Repairs: Some properties have missed opportunities. In the simplest of forms this is deferred maintenance. When deferred maintenance increases, rents decrease. Repositioning a property can cost as little as $5-$7,000 per unit. Investors can easily realize returns of 25% on these projects.
Preventative inspections are a powerful way property management improves the returns on your real estate investment. Covid has presented some additional challenges to protecting your asset and maintaining your ROI, but they can be overcome with adaptive property management.
To learn more about how Jacob Grant can improve your Passive ROI with preventative inspections call 208-795-8218 or schedule a call Schedule call