Buying and renovating a fixer-upper seems like a wise investment. However, there is a great deal of work that goes into these properties. If you are looking to rent out this space, then you want to pay careful attention to the main components to ensure your tenants are safe. While paint and new carpeting might be smart additions, they will be of little value if the electrical system has old knob and tube wiring.
Cleaning up these properties can be a monumental task. You will need plenty of help, especially if there is any rehab to be done. It would be useful if you had a large dumpster and plenty of elbow grease. Anything questionable or dangerous should be notated and added to the repair list. Use disinfectant to kill off any germs from age, sitting empty, or wildlife that may have occupied the home during the transition.
How to Make a Fixer-Upper Ready for Tenants: Repairs
There will most definitely be a long list of repairs on a fixer-upper. Look for issues like uneven floors, old wiring systems, HVAC units that are outdated or not efficient, as well as water damage. Water damage can be exceptionally costly to repair, and mold can be found in many different areas of a home.
While the first place you want to look is the basement or the bathroom, don’t be so sure that there isn’t mold hiding in other spots. You may need to remove drywall to uncover the true magnitude of the problem.
As you go through the home during your repairs, make sure that you do everything from a safety point of view. Attending to repairs now is a prudent step, as it could cost you more down the road if someone gets sick or perishes while renting because of situations in the home.
Upgrades and Improvements
The goal of most fixer-upper homes is to get in and out for as little money as possible. The longer it takes to make repairs, the more money it’s going to cost you. However, you cannot rush through a renovation project and put tenants into a dwelling without taking the proper precautions.
If the HVAC system needs to be upgraded, then fix it. If the home needs to be re-piped, then handle it now. It’s always easier to make repairs before someone moves into the home then to try to work around them when they are inside.
Buying and rehabbing fixer-upper homes is a great way to have a rental business with low overhead. Before tackling such a project, you must make sure you have the money and the time to do things right. As a landlord, you have certain laws that dictate tenants’ rights, and you don’t ever want to cross those by having things like mold or bad wiring inside one of your properties.
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RE: How to Make a Fixer-Upper Ready for Tenants