By Christina Feroe
As we approach the tax season, it brings up many conversations on yearly expenditures and additional ways to increase deductions.
As most of you know, I serve as the Property Services Manager. Bryce Walsh is my assistant and our department spends your money. I know it sounds crass, but that’s what it boils down to. Sometimes the expenses are routine and expected, such a sprinkler winterization and sometimes it’s the complete opposite, emergency services and yes, expensive.
Somewhere in-between lies the “sweet spot”, and that’s what I wanted to write about today. As the owner of an investment property, you should expect to actually invest in your investment. The investment that will always yield you the most rental activity and the highest rents are going to fall into the cosmetic category. Keeping paint fresh and new, replacing carpeting when needed and upgrading features such as kitchens and bathrooms to stay with a modern style can be a wise expense.
If your property has had tenants in place for three plus years, you may not be expecting to have to update carpeting or paint, because the tenants are “long term”. But if you’re not upgrading along the way, your expenses can be much larger when you have to update during an unexpected vacancy.
It is expected that rents will continue to rise for 2015, but interest rates remain low. With the low interest rates, we are seeing a larger number of tenants moving from being renters to being homeowners. Are you prepared for the vacancy? Is your property going to be highly desirable to prospective new tenants based on upgrades you’ve made?
I joke with several very dear, long-term owners, that I never just call to say “hello”, I’m always calling with a request to approve an expense. While I may be viewed by many of you as the dreaded phone call, when in fact, I am a professional problem solver with you and your properties best interests at heart.
If you want to discuss arranging for quotes on flooring replacement, new interior or exterior paint, upgrading countertops or complete kitchens, don’t hesitate to call, we’re always happy to discuss your options.
Happy New Year and thank you for the opportunity to work with you.
