This is the third and final installment in my blog series on buying investment properties in Northern Virginia. So far, we’ve covered Part 1 and Part 2.
Buying Investment Properties – Tenant Repair Deductibles and Home Warranties
- Have you considered whether or not you’re going to charge your tenants a repair deductible? With repair deductibles, anytime an appliance or system in the house breaks down, your tenants are responsible for the first $50 - $75 of the repair. These work particularly well when you, as the Landlord, have a home warranty on the property and only have to pay a $75 trade call fee each time an appliances breaks down and the home warranty company sends out a technician. Basically, the tenants’ repair deductible pays for the home warranty service call.
The bottom line is that, just like with any other business venture, it’s important to set aside some “seed” money, as well as some emergency cash, to make sure that you have an ample safety net for the start of your investment property empire. This will ensure that your venture has the best chance for real longevity.
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