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Tag Archives: rental maintenance

My Rental Property Strategy and Property Management

rental property strategy

There are many so called RE investors that pretend to cash flow, and they are not calculating any of the soft expenses.  Management, Vacancy and Maintenance are the big three.  Maintenance being a thing you can put off, and see profit, but it is in actuality deferred maintenance.   I allocate 10% of rents towards maintenance in my budgets, 5% for vacancy, and 7% for management.   And I expect ~15% ROI if I make the purchase. Most of my time in regards to the rentals is spent on turning apartments.  Bringing them back to as close to 100% as possible.  Sometimes it takes only a couple of hours, sometimes a bit more.  I turn many in a day, and often have zero vacancy between tenants.  But it is a bit hectic with a full time job.  If it is much more than a few hours, I have a damage deposit.  I can paint with the best of them, and can fix most anything any handyman can. When a renter is in, I would guess it averages well less than one hour per month, per tenant.  A property manager who charges $80 on a $1,000 a month rental would not put in ...

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