When you own a building with apartments, the maintenance work is different than owning your own home. There are different elements which need to be kept updated too and where you have to make sure there aren’t any damage issues. There will be maintenance requirements after a tenant moves out also that may call for renovation. And if you’ve had tenants who have caused damage to your apartments, you may even have to call in a multi-family construction company. However, to try to keep damage in check, below are some ideas what to look for when performing an apartment inspection before a tenant moves out or before a new tenant moves in.
- Check all the carpets in the rooms to make sure they are stain-free. Also look at the paint on the walls and woodwork for damage such as marks, gouges or scratches.
- In the kitchen, inspect the kitchen cabinets for any burn marks, spills or water damage. If there is tile on the floor, ceiling tiles or tiles on the backsplash; ensure that they aren’t broken, chipped or stained.
- Check the bathroom to make sure the shower/tub is cleaned and the toilet is working properly.
- Check to make sure the doors lock and the windows aren’t broken and that they close.
For a general yearly inspection, you may want to check on the following:
- Is the number of tenants which are on the lease the number of tenants which are living there?
- If you don’t allow pets, are there pets? If you do allow pets, is the correct number and kind of pets in the apartments? Also, check for any pet damage.
- If you don’t allow smoking, can you detect if your tenants have been smoking?
For general maintenance on the outside of the apartment building, you may want to run through this list:
- Check the paint on the outside of the building to make sure it isn’t discolored, chipped or cracked. See that the windows don’t have cracks and are clean.
- Check that the roof doesn’t have any shingles missing and that the gutters are free of leaves and also debris free.
Keeping your apartment building in excellent shape will not only attract a better quality of tenant, but save on expenses in the long run.
Thinking about buying an apartment community or other large scale multi-family complex? If you’re curious about the amount of time they may take, try a smaller scale project first.
What about buying a property and converting it into a mini multi-family apartment building? With a house undergoing multi-family construction, you have several choices too. You can live in one side yourself and rent out the other side; thereby the rent you collect will pay the mortgage payment. Or you can rent out both sides and have double the income. Either option will create cash flow and create a more sound financial future.
Another point is that multi-family homes sometimes are within the same price range as a single family home. When a lender knows that you are going to be generating income with the home you’re buying too, your lender considers 75% of the rent as part of your anticipated income. This in turn will let you buy a more expensive multi-family home for the price of a single home with the rent taken into consideration as income.
If you have a property that is undergoing renovation into multi-family apartments, keep in mind that it’s more profitable with more than one unit on the property. If you have multi apartments instead of just one unit too, then if an apartment is empty for a month, it won’t be as much of a financial burden.
And if you buy a unit which has two or three apartments in it, then most likely you’ll be able to finance traditionally instead of having to commercial finance. This means you would only need a standard down payment of 20%. You will also be able to apply for different types of mortgages such as a fixed rate or an adjustable mortgage.
When redoing a property with multi-family construction, the location is also important. Buying property which is near places such as large employers, grocery stores within walking distance and even by universities and colleges is good here. Renting out to students can be profitable also and know that they prefer to rent within a building which is student designated.
There are many advantages to multi-family ownership. Consider the options and what will work best financially for you. As long as you keep your expectations realistic, you can generate a profit while having someone else make your mortgage payments.