You may have found and purchased an investment rental property in a neighboring city that initially seems great – low property cost, high rent, great residents, and only some minor maintenance that needs to be done. The drive is only about 45 minutes each way, and you only plan to visit about once per month. On first glance, everything looks great, but you must take the time to consider the factor of driving costs.
The first important thing to consider is that residents do not last forever. Indeed, the average resident for a single-family residence will last a year and a half. People purchase their own homes, move for job opportunities, and other life events can result in a resident turnover. Once your resident leaves, you will need to get the property cleaned and prepared for the next tenants. You can hire professionals to do this work, but at the very least you will need to drive to your rental property to do an evaluation of what needs to be done, and then a return trip to ensure that your vendors did the work as expected. If your vendors have missed a few small things, then this may require additional trips on your part.
Once you have found a solid resident, you will need to make an additional trip for the move-in process. However, residents often have a number of follow up requests soon after moving in, whether it be a question on how to operate the dishwasher to small maintenance requests, and so you will need to plan a handful of trips within the first few weeks after move-in.
Okay, you now have a great new resident who pays the rent on time. Everything goes smoothly for a few months, but then the toilet overflows. Your resident must be at work and is unable to meet the plumber, and so there is another trip for you. No problems for a few more weeks, but then your resident has an altercation with a neighbor over the weekend, and there goes your Sunday. Everything goes smoothly for the next few weeks, but then a fuse blows, but your resident cannot find the fuse box, shutting off the heater in the middle of the winter…and you get a call at 3 am.
Although that 45-minute drive seemed so easy when you first purchased the property, it’s now a drain on not only your time but also the cost of gas, as well as wear and tear on your vehicle. How much is your time worth? That 45-minute drive each way for all the various aspects that you will need to take care of will add up.
Purchasing a property in a neighboring city can be a great investment with the low purchase price, high rent, and solid residents that you had initially anticipated. However, the time and cost of the day-to-day duties can turn that dream investment into a nightmare.
At Real Property Management Diversified, we understand the demands of a property manager and that often we are working at hours and driving long distances to locations that investment homeowners should not have to handle alone. If you have not yet considered the savings benefits of cutting back on driving costs then contact us online or call us at 352-854-2221 for more information about our services.