Quick Guide To Rehabbing an Investment Property

If you’re an investor looking to get a good deal on a home it may mean it requires some home rehab. It’s no secret that rehabbing/ flipping a home can be costly and time consuming. However, it can also be rewarding and profitable investment strategy.

What Is a House Rehab/ Flip?
A house rehab is when a person buys a property in its current condition and renovates or improves it. A home rehab generally is more extensive, and could involve fully replacing cabinets, busting out walls, replacing appliances etc. On the other hand, flipping generally focuses on more minor or cosmetic changes such as paint, fixture changes and landscape. The goal of rehabbing/ flipping a house is to sell it for profit or (in our case) rent it out to tenants as a long-term investment strategy.

How Much Does It Cost to Rehab a House?
According to Homeguide The average home rehab costs $20,000 – $75,000 depending on your of the property. To estimate the costs, you must factor in several things.
• Purchase price
• Supply and Material Costs
• Contractors and Labor Costs
• Permits Associated with Rehabbing

Short Guide to Rehabbing a House
The first step to rehabbing a house is purchasing a property that needs renovations or repairs. Before making an offer, you’ll want to estimate the After Repair Value (ARV) to determine if the property is worth your time.

You found the right house to reno! Great! But now what? If you’re not sure how to start once you’ve purchased your property, here are the steps to consider:
1. Evaluate Your Property
2. Come Up With a Budget
3. Find Qualified Contractors
4. Get the Right Permits
5. Demo and Clean the Property
6. Start on the Exterior
7. Finish With the Interior
8. Last minute design touches

Care For Your Rentals With Property Management
You spent a ton of time and a ton of money renovating/ flipping a home that you hope is to use to make you a profit. Now its time to invest in one more important thing! A quality property management company to get that beautiful like new home rented out to a proper tenant! After all that hard work renovating let us make this process easy!
At All County Property Management Group, we are here for you and all your property management needs! We help not only renters find their next home but also property investors looking for an experienced property management company to take over the hard work of property management. We offer up-to-date listings to suit a variety of needs and budgets. In addition, our dedicated leasing staff works with you every step of the way so you can feel confident in your home choice. Plus our team handles all property management needs from maintenance, leasing documents, marketing and more! For more information or to see our available listings in your area, check us out today!

Frequently Asked Questions by Potential Tenants:

Tenants often have several questions before applying to a rental property. That said, it’s important to be able to answer all of their questions thoroughly. Here are some of the most frequently asked questions we have received.

1. What is the Rent Application Process?
The first step in renting to a new tenant is the application process. Generally, the process includes:
• Paying for an application.
• Filling it out.
• Conducting a background check.
• Showing proof of income.
• Contacting their references.
• Signing a lease.

2. How Much Is Rent?
Another frequently asked question by tenants is: How much is rent? Generally, the rent amount is outlined in the rental listing.
In addition to asking how much the rental rate is, it’s common to ask what’s included. For example, sometimes the tenant will be looking for a property that includes outdoor amenities or security systems. While other times, tenants are responsible for setting up and paying for utilities separately.

3. Is the Security Deposit Refundable?
Most property management companies require a security deposit at the beginning of a lease term. The security deposit covers any potential damage or unpaid rent that may occur during the term. This could vary from property to property.

4. How Long Is the Lease Term?
Most tenants will ask about the lease term. That said, most leases are 12 months. However, some properties offer flexible lease terms, like 6-month or month-to-month contracts. This is generally chosen by the property owner but could potentially be negotiated if you are needing a different lease term length.

5. Are There Penalties for Breaking the Lease?
Some tenants don’t want to stay in a rental for the full 12 months, so they end up breaking the lease early. However, more often than not there are penalties for doing so. For instance, the most common consequence for breaking the lease early includes withholding their full security deposit. This is something that can be discussed more in detail at lease signing.

6. Do You Accept Pets for an Additional Fee?
Pets are allowed in some but not all rental properties. This is something that will also be up to the property owner and will vary from property to property. Make sure when applying to check the pet requirement beforehand if you intend to bring one.

7. What Maintenance or Repair Services are Available?
Maintenance and repair procedures are a vital part of any rental property. Most tenants will ask about procedures. For instance, they’ll want to know if we have 24/7 emergency maintenance services (we do) and how quickly requests are generally handled.

8. Can I Renew the Lease at the End of the Term?
Another question we get from tenants is if they can renew the lease at the end of the current term. Generally, this is beneficial for both property owners and tenants. However, it depends on if the tenant respects the property and the lease terms.

If you’re looking for a rental property to live in OR help managing your own, look no further than All County Property Management Group. We offer comprehensive rental management services, including marketing, tenant screening, maintenance, rent collection, and more. To learn more about how we can help your rental business succeed, contact us today!