Life has certainly thrown real estate investors a curveball or two over the last couple of years. If you’re lucky, you’re working with a good Phoenix property management company that has been able to help you navigate the challenges and trends that we’ve seen recently.
The most pressing issue right now, it seems, is rental property maintenance. The budget you may have been using to determine how much you’d need for emergency repairs, routine updates, and preventative maintenance may need to be altered. Everything is more expensive, and simply buying paint and parts has required patience and creativity.
Here’s how to prepare for maintaining your property, budgeting for those repairs, and getting through specific struggles such as turnover projects and renovations.
Budget for Higher Prices
The cost of nearly everything is higher. You can expect to spend more on wood, paint, appliances, and parts. Our rule of thumb has always been to set aside a minimum of 10 percent of your monthly rental income to cover those emergency repairs and preventative maintenance items. This still holds true because just as maintenance costs are rising, so are the rental rates.
Consider that higher costs for materials and parts will mean that vendors and contractors are also raising their rates. Even cleaners and landscaping companies are sending invoices to property owners that are higher than they were a year or two ago. If you previously expected to pay $150 for a complete cleaning when turning over a property between tenants, for example, we recommend you budget at least $200 in today’s market.
Expect Longer Wait Times on Phoenix Property Repairs
It may take longer to get things repaired. You’ll have to budget your time as well as your money.
A minor toilet fix might take a week longer than usual because parts aren’t found as easily. If you were committed to a particular type of paint or grade of carpet, you might not be able to find those exact matches anymore. This will require planning and flexibility on your part.
Finding someone to complete the repairs you need is also likely to take longer. Perhaps your HVAC service was once able to get out and inspect an air conditioning unit within a day of you making contact. You might be waiting a few days, now. Owners who want to remodel kitchens and schedule big projects are finding themselves waiting for months to get on a contractor’s schedule.
Phoenix Property Management is an Asset
As property managers, we cannot perform miracles. We’re not going to bring down the price of wood or the cost of labor. However, we do have the power to negotiate better deals based on our volume of work. We do have long-standing relationships in place with some of the best contractors in our area. We’re always leveraging those relationships and our professional networks for our owners.
Something to remember is that with good property management, you’re also earning more rents. Your property manager should be paying attention to the market and adjusting your price to meet the rising demand for well-maintained rental properties in Phoenix.
Prices are rising across the board, and rental property owners are finding they’re paying more for everything…except our management fees. When you need good, competitive Phoenix property management, don’t hesitate to contact us at Service Star Realty.
Service Star Realty
2929 East Camelback Road #119, Phoenix, AZ 85016