Your tenant's bathroom drain keeps getting clogged, but you finally managed to fix it. Now you can finally breathe because it seems like you avoided a disaster.
Who knew what that clogged drain might have caused, right? Phew!
And now it's 3 months later, and you're sweating while writing a big fat check because, as it turns out, the drain itself was not the issue. It was your ancient pipes that now have to be completely replaced.
If you're a landlord, you might find yourself budgeting only for what's most obvious, like the broken AC or leaky fridge.It's tempting; anyone could fall into this trap. But if you want to be smart with your money, you can't focus on spending it only on the loud stuff, but on the things that stop emergencies.
It's easy to replace a fridge, but pipes and electrical wiring? That's a nightmare.
Let's see how to avoid disasters and what to budget for.
5 Construction Services Every Landlord Needs to Plan For
Now, let's talk about the specific areas where putting a little money aside now keeps you from getting into debt later.
And this should go without saying, but let's mention it anyway: always, always… whenever you do any construction project, make sure you work only with professionals, such as K Graber Construction, or any other business that has plenty of experience in residential construction.
You want pros to think of all the things a DIYer or an inexperienced builder would forget (sometimes conveniently), and suffer problems later down the road because of it. Pros know what works and what doesn’t. They’ll think of things that have never crossed your mind. And they’ll have a warranty behind them as insurance.
You’ll pay, sure. But, at least you’ll know it’s done right.
If you do decide to save yourself some money at all costs and give your business to a company that doesn't have either the expertise or the experience to do their job well, you'll (likely) end up with a catastrophe on your hands.
Roofing Services
The roof is quiet. It just sits there, day after day, and nobody really thinks about it a lot. Then your tenant notices a stain in their ceiling, and that sends you into a full-blown panic, and you're already calculating all the money it will take to fix it.
But this didn't happen overnight. The shingles can curl because the sun bakes them, the wind gets under the flashing, and slowly, they wear down. The smartest thing you can do is pay for a professional inspection every few years.
They'll catch the little issues before the rain gets in, and when you budget for it, you can fix things when you want.
Concrete Work
Concrete is tough, no question about it.
But it's constantly in a fight with the ground underneath it and, sooner or later, you'll notice cracks. Not only are they ugly, but they can get wider thanks to the freeze-thaw cycle. Basically, those little cracks fill with water that freezes and expands, which causes the cracks to grow. Next thing you know, your driveway is a tripping hazard and a lawsuit. And if you see cracks in your foundation walls or slab, it means that something is literally moving.
Set aside some cash for concrete work. This will let you seal cracks, fix parts that are sinking, etc.
Building Envelopes and Exterior Work
If you're wondering what a "building envelope" is, it's a fancy term for the siding, windows, doors, and insulation. In other words, the building's skin. When this skin has holes (drafty windows, old caulk, etc.), you waste a lot of money on heating and cooling, not to mention the amount of moisture that gets in.
In this case, budgeting means you can replace worn-out weatherstripping, slap on a fresh coat of paint before the wood rots, and seal up any gaps.
Pretty boring, right?
And yet, this will prevent the slow, expensive rot you won't even see until it's way too late.
Plumbing System – Maintenance and Upgrades
Clogged toilets are old news; that's not what will kill your budget.
The real issue is the pipes. Old pipes can rust so much that they get shut off, but that's not even the worst that can happen. They can spring a slow leak inside a wall for months before you notice. That's a mold and tear-out disaster.
Be smart about this and replace old plumbing little by little, especially in between tenants.
Upgrading and Repairing the HVAC System
Until it gets too hot or too cold inside, nobody thinks about the HVAC systems. But as reliable as they are, they can get tired and lose their efficiency. It's your job to change the filters, but you should still set some money aside to hire a pro to come clean the guts and check for problems, like a rattling fan or a tiny refrigerant leak.
What's even more important is to save for the day when the entire system goes on the fritz.
If you plan to replace it before it completely quits on you, you have the time to look for discounts instead of paying a 300% markup in July.
Conclusion
This isn't about being pessimistic or paranoid. Actually, it’s quite the opposite. Basically, what you’re doing, you’re being smart about it.
If you’ve got some money set aside for repairs, you don't panic when something goes wrong because you already have it covered. You don't have to do it all at once or have all the money you'll ever need in one giant pile.
If you don't have a budget already, start now. Pick one category and begin saving, little by little. It will add up faster than you think.
