Happy New Year everybody!
Sometimes it helps to get organized, as you may be finding out as you put your 2015 financials together to file your Tax Returns;-)
Within the next week I’m going through all my properties to inventory all the Appliances. There are several benefits for doing this. Your Tenants will appreciate your concern for the property. They can request repairs and upgrades which could help justify your next rent increase. You could catch something that needs to be fixed before it gets too costly like a small leak. This is what most Companies in Business call PM (Preventative Maintenance) and should prevent ReActive repairs and costs vs ProActive repairs.. Finally you’ll be organized and this will help justify keeping a reserve account.
Another tip – Mr. Landlord suggests buying a $5. Battery operated water sensor to place under any Kitchen or bathroom sinks.
We’re all supposed to replace the batteries in our Smoke Detectors when Daylight Savings time ends. If you haven’t, this might be the time to either replace the Detector (and CO Monitor) or Batteries. There was recent case here in Massachusetts where a couple in a duplex passed away from carbon Monoxide poisoning. I’d hate for that to happen to anyone I know. So as you’re weighing the inconvenience and cost of doing this inventory, consider the potential downside…
OK here’s my checklist:
Boiler/Furnace – Model #, Serial #, Age, Condition.
Water heater* – Model #, Serial # Age, Condition
Toilet – Low flow? Age (underside of the tank cover). Running?
Dishwasher – Model#, Serial #, Age
Range – Model#, Serial #, Age
Refrigerator – Model#, Serial #, Age
Garbage disposal – Model#, Serial #, Age
Smokes/CO monitors – Model#, Serial #, Age, Batteries changed __________
*Lately I’ve found my water heaters notoriously fail (leak) just after their Warranty ends (usually 6 years). You may want to check your water heaters for ANY small leaks which seem to start just before the Warranty ends and get a new one from the manufacturer.
By the way, According to the National Association of Home Builders (NAHB) the average lifespan of Appliances is:
Dishwashers – 9 years
Gas and Electric ranges – 13 years.
Refrigerators – 13 years.
Garbage disposals – 12 years.
Water heaters – 10 years
Selling – By the way data from Remodeling’s 2015 Cost vs Value Report estimates that upgrading just the Kitchen and Bathroom alone can produce a 48-60% ROI , respectively. Just be sure that if you do one, the other should be brought up to the same level or buyers will notice a mismatch right away.
Buying – While you’re at your properties, as we know from our recent “Hidden Market” BootCamp, take a look around. There may be something ready to be your next Purchase…
See you soon, Mike Hurney, Director NewHampshireREIA.org
PS You may also want to make sure everyone knows where the main water shut-off is and that the electrical panels are marked.
Mike Hurney is the Founder and Director of MassRealEstate.net, an Association of Contractors, Investors and Landlords. He is the Author and Coach of the popular Course "How to Become a Real Estate Investor in 12 Easy Lessons" which Trains and Guides Beginners or Sharpens and Challenges the Skill of Advanced Investors. Mike is a Successful Real Estate Investor, Rehabber and Landlord. He's also a Licensed Mortgage Broker and Construction Supervisor.