This Real Estate Property Sucks!
So I was up late, because I can’t sleep and decided to go over some real estate numbers. This time I wanted to focus on the repair side of the equation. I noticed that when I get into my real estate analysis zone, I usually focus on the acquisition side only.
Well… I switched it up a bit and was happy that I did.
I found out that my properties have a 95+% occupancy rate.
That expenses are way less than my conservative 50% estimate.
That 1 property makes up over 80% of our repairs for the year.
Can you guess which property is the bad apple? If you guessed K. Michelle you were right…
Let’s break down the pattern…from February to July there was a call in for maintenance on this property, every month except January and August. Typically, it’s something to do with the toilet or tub… every month… toilet and drainage issues! The last few reports were of the tree roots growing into the system and blocking drainage. My team would have to go in and cut the roots back every time. The next step will be to look up a permanent solution to this problem and do some analysis on ROI.
If you own rental properties, do you know which property is costing you the most money? What did you do to rectify the situation?
A lot of these repairs are plumbing issues. Since we acquired this properties it’s been the same song…. backup after backup after backup.. Often times the roots from the trees get into the system, sometimes it’s the tenant.