Managing Repairs to Your Rental Property
Buying a rental property is not like buying a stock or bond. A house is a physical thing. Someone is going to live in it and things are going to break. Not only do you have an ethical obligation to provide a safe and livable environment for the family that is renting from you, you also have a business obligation to your own pocketbook to ensure that you are maximizing the return on your investment.
You need to start thinking about repairs before you buy the property. When you are running the numbers and evaluating the potential investment you need to take repairs into consideration. Most investors will naturally consider outflows like mortgage payments, insurance, fees and taxes, but many fail to make an allocation for the repairs that will need to be made on the property.
Some of the repairs can be foreseen.
How old is the roof? You can probably predict more or less when you will need to replace it. How about the air conditioning system? Or the carpeting? Some items have a natural lifespan and you can predict when these replacement costs will hit.
Other items are not so predictable. So a rule of thumb that we use is to simply budget an annual expenditure of 1.5% of the property value for repairs - meaning that on a $100,000 property we expect to spend around $1,500 per year. Once a repair is necessary and it is time to pull out your checkbook, make a point of getting to it quickly. Be realistic about what you can do yourself and when you need to get a professional on the job.
You can save time and money by getting an expert to handle the job.
Mr. Herbert L. Otey
Executive Director / President
Mr. Herbert L. Otey is a United States Air Force Decorated Honors Veteran. While in the Air force he was Crew Chief of B52 Airplane and he completed Airframe and Power plant Certificates and licensed by Emory Riddle Aeronautical University . He was stationed in Homestead Air Force base where he meet his wife (Annie B. Taylor ) and has been married for 39 years. After his honorable discharge he went on to obtain his bachelor of science in Business Administration and Management from Florida Memorial University, where he join the Free Mason.
Mr. Otey owns several Corporations in the State of Florida for Profit and Non-Profit. He has served on the Board of Code Enforcement for the City of North Miami where he has resided since 1984 . Mr. Otey was a past Executive Directors member of the Greater North Miami Chamber of Commerce (retired). He still an active member of North Miami Chamber of Commerce .
Mr. Otey has been a Section 8 Landlord for Miami-Dade since 1984 .
Mr. Otey holds contract with City of Miami and Miami -Dade County Housing Rentals with Properties located in the Miami, North Miami, Miami-Dade County also Managing additional property in the state of Virginia.
Mr. Otey now is using his years of experience in property management , property rentals, purchase of properties and sales of properties to help others make there property investments profitable.
Operator of Dwelling City of North Miami.- current
Miami - Dade Property Management and Maintenance Contractor