Multifamily housing is a boon to your real estate investment portfolio, but it can also be a source of frustration at times. A successful strategy to managing these properties and making the most of your multifamily property loan requires property owners to react quickly when problems occur and be proactive in preventing issues in the future.
Here are some ways in which you can face challenges like a pro and keep your tenants happy.
Act Quickly with Plumbing Issues
While a leaky faucet or clogged drain might be a mere nuisance in a single-family home, it can cause major problems if left unattended in a multifamily home. If a tenant—particularly one on the top floor—notifies you of a plumbing problem, it should be taken care of right away to avoid flooding and possible water damage to other units or floors.
Be sure to impress upon your tenants that plumbing problems are a priority for you; otherwise, some enterprising DIY’ers in your building might think they can solve the issue themselves and cause even more problems. When a new tenant moves in, provide a list of dos and don’ts for plumbing, including what not to dispose of in a garbage disposal or septic system.
Replace Major Appliances Accordingly
Major appliances like refrigerators and stoves can be costly to replace in multiple units. If you have a two- or three-family property, it might make sense for you to find a discount on multiple appliances and replace them for every unit at the same time.
If you own an entire apartment building, one way to stretch your dollar is to sign up for extended warranties on appliances so you have longer coverage on small repairs. Make note of the timelines for when new appliances are installed, that way you can prepare and earmark funds for replacing them in the (hopefully) distant future.
There are fewer ways to quickly make enemies of neighbors than battling over street parking space. If you have the means and the space to do so, providing off-street parking for at least one car per unit will not only put you in the good graces of the neighborhood, it will also allow you to charge higher rents. To avoid parking problems among your tenants, assign clearly delineated parking spaces. In the event of snow, have a snow removal plan in place.
Optimizing your bridge loan by owning multifamily homes doesn’t have to mean multiple problems if you are proactive with your approach to maintenance and upkeep of your properties.