Every rental real estate owner knows that repairs and maintenance are among the most important components of managing the property. It can be costly and tedious, especially to new investors who lack the know-how of cutting costs and preventing unnecessary repairs. This is the main reason most investors choose to have a Toronto rental property management company on the job.
Timely repairs and maintenance are needed for three main reasons:
1. Happy Tenants. When your tenants are happy, the turnover rates are low and you save money on vacancy downtime as well as the inevitable clean-up and touch-up costs that come with putting it on the market again.
2. Property Value. When the property is kept in prime condition, you can rent it out for more, attracting quality tenants as well as increasing cash flow.
3. Repair Costs. Preventative maintenance and small repairs can spare you from having to deal with bigger, more expensive issues. A crack in the eaves trough can be easily mended now, but leaving it as is (to save on the immediate cost) will see you having to replace a whole section only a year from now.
Those all sound simple enough, which they are if done by a professional Toronto property management company, but may be difficult when you have many other properties to run and little time to dedicate to every one of them.
Moreover, a property management professional will know exactly where to look and won’t miss a budding problem, putting out fires before they grow. There will always be a full a repair staff on hand, with quick response times. For more hefty jobs they have affiliations with trusted local contractors, which allows to reduce repair costs. Last but not least, a property management company can advise you on the best ways to write off repair and maintenance expenses, minimizing the losses of every job.
Smart Tax Deductions on Investment Property Repair
We just mentioned taxes and writing off repair costs. Let’s elaborate on this. Not everybody knows that while the cost of repairs can be deducted entirely in a single year, not so the cost of improvements. This specific cost goes into the “home improvement” category and may need to be depreciated over more than a decade. Many investors have benefited from having their maintenance done by a property management company in this alone.
This was, of course, not much more than a brief overview. The nuances of running a rental property are many and varied, and the benefits a Toronto management company can bring you are not restricted to maintenance alone.
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