As a businessperson in the real estate industry, it’s important to stay up to date on the latest trends and developments. One area that you should be particularly knowledgeable about is property repairs. Here are four facts that every real estate professional should know about this topic.
Fact #1: The contractors you use for repairs can make or break your business
If you’re not careful, you could end up hiring a contractor who does shoddy work or overcharges you for their services. To avoid this, it’s important to do your research and only hire contractors that come highly recommended. Some of the most seasoned contractors offering roofing services to companies in the real estate industry suggest that businesspeople ask for referrals and get multiple quotes before hiring anyone. It is also a good idea to check online reviews to see what other customers have said about a contractor’s work.
Once you have a few good options, be sure to have a detailed conversation with each contractor about your specific needs and what you expect from them. This will help ensure that everyone is on the same page and there are no surprises down the road. You must also ensure that you have a binding contract that spells out the scope of work, timeline, and payment terms before any work begins. This will protect you in case anything goes wrong. As much as possible, you should also consider insurance when hiring a contractor.
Fact #2: Property repairs can be expensive
When it comes to property repairs, the costs can quickly add up. This is especially true if you’re dealing with major damage like a broken roof or flooded basement. While it’s important to budget for these repairs, you also need to be prepared for unexpected expenses. That’s why it’s always a good idea to have some money set aside in an emergency fund to cover these unexpected costs. On average, you should expect to spend about one to three percent of your property’s value on repairs each year. This number will increase if your property is older or in need of more extensive repairs.
It’s also important to keep in mind that some repairs may be tax-deductible. This includes things like replacing a roof or HVAC system. Be sure to talk to your accountant about which repairs qualify for this deduction. Additionally, when you’re making repairs, be sure to keep all receipts and documentation so you can take advantage of these deductions come tax time. Keep in mind that these pieces of documentation can also come in handy if you ever need to file an insurance claim.
Fact #3: It’s important to be proactive about repairs
If you wait until something breaks to fix it, it will end up costing you more money in the long run. This is because emergency repairs are almost always more expensive than preventive maintenance. Additionally, if something does break, it could end up causing even more damage to your property. For example, if a pipe bursts and floods your basement, the water damage could spread to the rest of your home if you don’t take care of it right away. To avoid this, it’s important to be proactive about repairs and maintenance. This means staying on top of things like changing the air filters, checking the smoke detectors, and fixing any small problems before they have a chance to turn into bigger ones. By being proactive, you can save yourself a lot of money and headaches down the road.
Fact #4: Repairs can be a great opportunity to add value to your property
In addition to being necessary to maintain your property, repairs can also be a great opportunity to add value. This is especially true if you’re planning on selling your property shortly. For example, if you’re planning on selling your home in the next five years, you may want to consider making some cosmetic repairs or upgrades. This could include things like painting the walls, updating the fixtures, or even remodeling the kitchen or bathroom. These types of improvements can go a long way in increasing the value of your home and making it more attractive to potential buyers.
These are just some of the things that you should keep in mind when it comes to property repairs. By being informed and prepared, you can save yourself a lot of time, money, and stress. And, if you’re smart about it, you can even use repairs as an opportunity to add value to your property. So, don’t be afraid to roll up your sleeves and get to work. Your property and your wallet will thank you in the end.