At Performance Property Management we manage about 500 units in the Denver area and front range cities and we’ve had a quite a few roof leaks lately with all this rain. However most of the leaks have been able to be repaired with minimal costs to our clients, utilizing our own maintenance crews. As we do the repairs we are noticing many other maintenance items that need to be addressed on our managed buildings. As property owners we all need to set aside 5%-10% of our gross revenues for these maintenance items. And the older our buildings get the higher the percentage. On some of my older buildings in Capital Hill or down town Denver, I would put aside 25%-35% of gross revenues for maintenance items, if the major systems had not been replaced, such as plumbing, electrical and roofing.
We use an excellent property analysis software and offer free reports to all of our new owner clients to help you determine, as best as possible, if your investment is/will produce the type of return on your capital investment over 1, 5 or 10 years as you expected based on all of the variables that go into owning rental properties. Click here to register for your own software license and receive a free bonus when you order. To see an abbreivated sample report click on attached file.Sample property analysis report
There is no set number for these expenses so it all comes with experience and knowing what it costs to fix and maintain buildings, and what the going rates are for labor and materials. This is why a detailed property analysis report along with inspections can help make or break your real estate investment returns.
With all the maintenance requirements on real estate you need a good property management company that will take care of your needs and watch out for your property so you don’t have to.
Call Jerry when you need Performance to manage your properties at 303-351-8005 or click here to email Jerry directly and request a property management proposal.
Have a great day!
Performance Property Management