Location is one of the biggest factors in a property’s value, but there are several other factors that can affect it. Before you invest in a property, ask yourself these two questions to avoid being surprised by plummeting value or additional expenses.
Has the property suffered any damage that could be costly to repair in the future?
Perhaps the property you’re interested in investing in is perfectly fine right now, but it might not be long before unplanned—but necessary—repairs surface. Take the time to do some research and uncover whether a property has been damaged by flooding, termites, or mold or if any key features, like the roof or plumbing, are due to be replaced soon. These repairs can be costly, and they could potentially drain even more value out of your investment property if tenants are forced to move out while repairs are made.
Will you need to invest in any upfront repairs and upgrades before renting the property?
You might also be interested in a property that definitely needs repairs or needs to undergo renovations before it can be rented at a reasonable rate. In this case, you should make sure that (a) you think the repairs are worthwhile and will add value to the property and (b) you trust the property manager to execute the repairs in a satisfactory manner. This relationship between the investor and the property manager is an important part of your investment, and it’s particularly important when complicated repairs need to be completed according to building codes.
For all of our properties, Founders Grove handles all due diligence and oversees all repair work, so you can rest assured that the property you’re interested in has been thoroughly reviewed by our team of professionals. For more information or to discuss an investment in more detail, contact us.