Beware Profit-Killers for Charlottesville Investment Properties
Your Charlottesville investment properties are fulfilling all the potential you hoped they would. They do more than just pay for themselves with the cash that flows in with the tenants’ monthly rent checks—they also build equity with each mortgage payment.
The wisdom of those investments is reinforced every time you check your personal balance sheet. The growing contribution to ‘Real Property’ line on the asset side makes a pleasing counter to the shrinking figure in the liabilities column. When it comes to your Charlottesville investment properties, the bottom line is, literally, the bottom line.
All well and good, provided that the happy state of affairs continues. But if there is one thing that seasoned investors agree on, it’s that successful rental property owners keep an eye on their investment properties. As Forbes Real Estate Council member Nathan Miller writes recently in his essay for investment property owners, great management means staying vigilant regarding the factors that don’t have a clear dollar amount when reckoning the bottom line. He enumerates some “cash flow killers” to avoid:
· Wrong Insurance. Particularly if you are making the transition from residential property to rental, a different type of insurance provides the protection you need.
· Tenant Quality. Bad tenants are inevitably expensive—while screening packages aren’t! Charlottesville regulations cover what background inquiries might require applicants’ permission.
· Management. If you rely on professional property management, its quality will find its way to the bottom line. Our best Charlottesville property managers are easy to spot via some deep dives into their online reputations—which includes tenants’ opinions.
· Misc. Successful Charlottesville investment property owners also stay mindful of issues like “sneaky” HOA fees (those are knowable in advance) and deferred maintenance.
This season’s crop of listings include properties that could make outstanding Charlottesville investments. Just give me a call if you’d like to see them for yourself!