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How to Budget for a Rental Investment – Chula Vista Property Investment

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In the property management business, we meet a lot of accidental landlords who don’t understand the costs associated with owning San Diego area rental property. Those are people who have a second property that they thought they could easily rent out. They might have expected that their tenants would pay for the cost and the upkeep and condition of the home, but that’s not really the case.

Providing a Quality Product

I tell owners that owning a rental property is similar to renting out a car over a period of years to different people. Over that time period, you’ll need to replace the brakes and the tires, and you’re going to have to get it repainted because of dings and chips and scratches, as well as the damage that sun can do to it over time. So to get the rent you’re looking for, you have to offer a product that’s comparable to the inventory listed on the market for rent.

Damage and Wear and Tear

Damage is damage. Wear and tear is different and includes the simple items that need replacing over time. Like tires and brakes on a car, your carpet will wear out and need replacing. You’ll have to touch up and repaint the walls. Window blinds grow old. These things are perishable, and these are some of the things that property owners don’t always consider.

Maintain Property Reserves

So something to think about is that it’s best to have reserves in the event that you have to make a major repair or conduct routine maintenance. You want to continue getting the rents you have been getting, so you have to keep the property in good condition. You don’t want to put the tenant in the position where the home is dilapidated and not in good condition. Then the tenants won’t pay rent and legally speaking, they have rights.

If you’re thinking about buying a rental property in Chula Vista or you currently own one and you’ve thought about talking to a property manager, contact us at Noble Real Estate Services. It’s a wise decision, and we’re an affordable service that pays for itself.

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