Investing in rental property is a fantastic way to increase your passive income. High risk, however, often follows anything that comes with high rewards.
Risk management is essential to ensure you get the most out of your investment. Mitigating these risks includes keeping your investment property secure from home invaders and carrying out improvements to raise property value.
Here are some tips put together by the team at Pro X Property Management to get you going!
Install Window Sensors
Installing entrance sensors is a good tactic to ensure the safety and security of your property. Sensors will alert you when a window or door opens or closes once they’ve been added to one. An excellent first step in securing your home is to guard potential access.
Sensors will make your renters feel safe and make your property stand out from the competition. Worried about the cost of installation? With a property as prime as yours, you can be able to charge additional rent to recoup your investment.
Have an Emergency Fund
An emergency fund is one of the best strategies to safeguard your home investment. This might help you pay for unforeseen expenses like repairs or replacements if something goes wrong.
Your emergency fund should ideally be enough to cover three months' worth of costs. This will provide you with a safety net in a financial disaster.
Review Your Home Insurance Coverage Regularly
When your homeowner's insurance policy is up for renewal each year, it’s crucial to review it. It’s necessary to make sure you have enough coverage.
You're likely to accrue more possessions as the years go by. Your insurance policy may provide extremely limited coverage for items like jewels, fine art, or antiques.
There will come a time when you need to review your insurance coverage. You might have done some remodeling to your property, be it the addition of a pool or making renovations to your bathrooms.
If the new value exceeds the coverage of your policy, the insurer will not be able to indemnify you completely.
Upgrade the Outside Lighting
Good lighting is an excellent deterrent for home invasions. Intruders will have fewer places to hide thanks to motion-sensitive lighting and lamp posts, which can both prevent them as well as catch them in the act.
The entry from the street, the garage door, the backdoor, the far end of the backyard, and any exterior building a trespasser might use as cover should all have a few motion-activated flood lights pointed at them.
Solar-powered lights eliminate the need to hire an electrician to attach them to the building's switchboard and ensure that they continue to function even in the event of a power outage.
Don't Neglect Outdoor Spaces
You can't just focus on the interior of your rental home when it comes to maintenance. If your property has outside living areas, such as a pool, a balcony, or a backyard, these areas must be as enjoyable, secure, and convenient for renters to use.
Consistently make an effort to ensure that lawns are mowed frequently, outdoor furniture is usable, and that all windows and railings are in good condition.Regular watering should be done to shrubs, flowers, and plants.
The roof of your investment property may be the most significant exterior feature. Check your roof frequently to ensure it's in good condition and won't need to be replaced.
Invest in a Security System
Today's market is flooded with excellent security systems that can safeguard both your tenants and your investment. A good security system might even aid in attracting prospective tenants!
The majority of burglars will hesitate before trying to break into a house with a security system sign out front. If they do, the authorities will be notified right away.
Additionally, modern technology allows you to remotely monitor your house using a smartphone or tablet. Many of these systems can be linked to smoke alarms and carbon monoxide detectors for additional security and faster response times.
Employ a Property Manager
Keeping a close eye on both your tenants and rental property might be challenging if you don't live nearby or have a full schedule.
Property managers can handle any difficulties that arise and can respond whenever needed. A property manager visiting your rental during business hours may even deter potential criminals who may be watching the premises.
In addition to responding to tenant requests, property managers have a variety of other responsibilities, such as screening prospective tenants, maintaining the property, collecting rent, and handling all the other time-consuming activities involved in renting out a residential property.
Maintain a Schedule for Routine Maintenance and Repairs
Keeping up with routine maintenance and repairs is one of the best ways to protect your home investment. This involves fixing any issues when they arise rather than waiting for them to escalate into bigger issues.
Routine maintenance can help you identify potential issues before they can cause serious damage.
Routine home inspections are also a necessary part of maintenance. Home inspections help track the overall condition of your home and let you identify any problems that need resolving.
For instance, if you have an HVAC system, make sure to have it maintained on a regular basis. That way, it’ll work properly and won’t be as likely to malfunction when used.
The greatest strategies to safeguard your property investment include performing routine maintenance and repairs, purchasing a warranty or insurance for important systems and appliances, adding security features, and ensuring that your home is properly insured.
Another crucial component for safeguarding your home investment is having an emergency fund. It’s important to note that while following these suggestions will help safeguard your property, not all issues can necessarily be avoided.
In the end, it's critical to be aware of the dangers associated with home ownership and to take action to reduce them.
Contact PRO X Property Management today to learn about more strategies to secure your home and investment property. Our experienced team is more than willing to assist you!