When buying investment property, do you know which repairs can be overlooked? What can you fix on your own? And what can be overlooked altogether? No matter what, you’ll need to maintain a safe and livable environment for your tenants to promote tenant retention and reduced vacancy. In our latest post, learn about the repairs you should overlook as well as the ones you shouldn’t.
As a Greater Toronto Area real estate investor, it is important to know what to look for when buying an investment property. Which properties pose to produce the most profit? Which will cost the most to repair? Which repairs can be overlooked? When creating your cost analysis, be sure to take note of which repairs can be overlooked, or postponed until a later date.
Sure, having an ugly building isn’t going to attract many renters. But cosmetic repairs can be fixed over time and don’t all have to be done upfront. You can go ahead and overlook things like ugly paint, old carpet, dated decor, or an ugly exterior. Things types of things can be easily fixed over the course of a weekend and with a little elbow grease.
This falls under the cosmetic category, but we have seen people turn away from homes again and again because something is outdated. Maybe it is the window treatments, or the mirrored wall, or the tacky wallpaper, but whatever it is can usually be changed at a relatively low cost. Styles change, but as long as the structure of the home is in good shape, everything else can be modified and overlooked.
Some Cleanliness Issues
If a house should come with a hazmat sign, it’s best to stay clear. But if a house just needs a good cleaning, it might be worth giving a second look. Stained and dirty grout can immediately make you think the house is moldy or filthy, but that is not necessarily the case.
That said, nobody wants to buy a house of filth. There is always something else on the market. If the house is borderline disgusting, it is probably in your best interest to move on. If they couldn’t clean, they probably weren’t performing maintenance to the home. Plus, there are very likely going to be pests found somewhere within the home.
Loose fixtures can give the impression that things are old and worn out. But always keep in mind that a wobbly railing can always be tightened as can a loose sink knob or cabinet handle.
Some Heating and Air Issues
Air conditioning and heating units can be very costly to replace. However, many repairs are done at very low costs. Before passing on a house because of a heating or cooling problem, find out exactly what’s wrong to determine if you should move on or make an offer.
Old cabinets can be refinished or repainted rather easily. Adding new fixtures to the cabinets including knobs, handles, and hinges can give old cabinets an entirely new look. As long as the cabinets are functioning and good shape, everything else can be taken care of. And if you still aren’t fond of them, they are always something that can be replaced down the road.
When buying investment property, never overlook structural issues, a bad roof, drainage problems, or a sinking foundation. These types of repairs can be incredibly costly to fix and may end up costing you much more than you had anticipated.