When it comes to investment properties, landlords and real estate investors know that there are certain responsibilities they assume when they take on a rental property. Responsibilities like tenant relations, vendor management, and maintenance of the property are all part of owning a rental.
One important maintenance item that affects both tenant satisfaction and your bottom line is proper plumbing maintenance.
It’s often one of the most overlooked aspects of a rental property, however, overlooking it can lead to costly repairs and tenant dissatisfaction.
That’s why routine plumbing maintenance is crucial for landlords and real estate investors. In this article, we will discuss the importance of regular plumbing maintenance in the context of keeping investment properties profitable, mitigating risk, and the potential cost savings for landlords and real estate investors.
Regular Plumbing Maintenance Boosts NOI & ROI
Plumbing problems can be costly to repair, especially when they’re left untreated for too long. Slow drains, dripping faucets, and leaking pipes may not seem like a big deal at first, but they can quickly escalate into significant problems.
And, contrary to popular belief, these plumbing issues can significantly affect your bottom line.
By regularly inspecting and maintaining your rental property’s plumbing system, you can prevent costly repairs and maintenance from arising in the first place, which will help keep your NOI (net operating income) high.
This means more money in your pocket!
Regular plumbing maintenance can help you identify these issues early on and fix them before they become a more costly repair. For example, a plumber can identify a broken pipe in the early stages and fix it before it causes significant water damage to the property. Preventative maintenance is an investment that can save you money in the long run.
What can happen if you ignore a plumbing issue in your rental property?
If you fail to address an issue with your rental property’s plumbing, such as a slow drain or leaking pipe, it can lead to bigger problems like mold growth and water damage. This can be costly and time-consuming to repair, not to mention a huge headache for both you and the tenant.
By inspecting the plumbing in your rental properties on a regular basis, these issues can be identified and fixed quickly, thereby reducing the risk of costly repairs and tenant dissatisfaction.
Keep Tenants Happy, And You Win In The Long Term
Another advantage of regular plumbing maintenance is tenant satisfaction.
Happy tenants equal a profitable business. When tenants are satisfied with their living space, they are more likely to renew their lease, meaning you don’t need to spend time and money searching for new ones when their agreement is at an end.
Tenants are more comfortable when they know that the property they’re renting is well-maintained and safe. Routine plumbing maintenance can prevent emergencies and ensure that tenants have reliable access to clean water and functional plumbing fixtures. This can help to maintain a positive relationship between landlords and tenants and ensure that tenants stay longer, reducing vacancy rates.
Regular plumbing maintenance is one way to ensure that your rental property remains in good condition and that any issues that arise can be fixed quickly and efficiently.
By addressing any problems with the plumbing before they become a larger issue, you can keep your tenants happy and help increase the value of your rental property.
The dangers of unhappy tenants…
Unhappy tenants can put your investment at risk. Not only will they be less likely to renew their lease, but they could also cause damage to the rental property and file complaints against you—all of which can cost a lot in time and money.
When you compare the cost of finding a new tenant to that of regular plumbing maintenance, preventive care is far more cost-effective.
Staying On Top Of Plumbing Problems Mitigates Risk
This is a complex one, however, one that shouldn’t be overlooked. There are two ways that a bad plumbing system can put your investment property at risk:
- Your tenants can be in danger: Poor plumbing systems can release harmful gases or waterborne diseases, putting your tenants at risk of health and safety concerns.
- Small problems can become expensive over time: If you don’t address small issues like slow drains, blocked pipes or rusty fixtures, these problems can quickly become more complex and expensive to fix.
By consistently carrying out routine plumbing maintenance for your rental property, you not only ensure the safety and well-being of your tenants but also safeguard yourself from incurring substantial long-term expenses that may arise from neglecting essential plumbing repairs.
Regular maintenance checks, such as inspecting pipes for leaks, checking water pressure, and servicing water heaters, help identify and address any potential issues before they escalate, providing peace of mind for both you and your tenants.
Taking proactive measures to maintain the plumbing system in optimal condition can also contribute to a positive living environment and enhance the overall value and desirability of your rental property.
Improving Plumbing Systems Increases NAV Of Your Property
The Net Asset Value (NAV) of a property is essentially its market value. By maintaining the plumbing system in good condition, you can preserve and increase the NAV of your rental property and improve its desirability to potential tenants, banks, and buyers.
When inspecting a rental property for potential buyers, any problems with the plumbing system will be taken into account when assessing its worth. If there are significant issues with the plumbing that have been left unattended, this could decrease the perceived value of your property and, consequently, its NAV.
By regularly inspecting and maintaining any issues with the plumbing system in your rental properties, you can help to maintain high NAVs and enhance their desirability to potential buyers.
How does plumbing impact NAV?
When calculating the NAV of your portfolio and individual properties within it, one of the key metrics that will be taken into account is the condition of the plumbing system.
A good plumbing system that is built to last for the next 10 to 15 years with minimal maintenance is worth significantly more than a plumbing system that is already showing signs of wear and tear or requires frequent repairs.
Over time, small repairs can pile up, leading to a cost surpassing several thousands of dollars per year.
In the realm of real estate, playing the long game is crucial. Consider this: by investing $10,000 in a plumbing system now, you could potentially save $15,000 over a span of 10 years. This translates to a direct increase in the Net Asset Value of your property when you decide to sell or leverage your asset.
Partner with a Professional Plumbing Service Provider
Partnering with a professional plumbing service provider that understands the business of real estate is an important aspect of routine plumbing maintenance.
Plumbing experts like Western Rooter & Plumbing can provide a wide range of services including drain cleaning, water heater installation, sewer video camera inspection, and water filtration system installation.
We are experts at working with commercial, mixed-use, and multifamily rental housing plumbing systems, and we understand the types of solutions savvy real estate investors and property managers need to maximize their profits.
Partnering with a plumbing service provider like Western Rooter not only ensures that all plumbing needs are met efficiently and professionally, but it can also allow landlords to save money on reduced service and repair costs with regular maintenance contracts.
Landlords and real estate investors must prioritize maintenance of their investment properties, especially with plumbing, to avoid costly repairs, improve tenant satisfaction, mitigate risks, improve property value, and save money.
Regular plumbing maintenance is not only a wise investment but also a long-term strategy that yields substantial benefits.
By partnering with a reputable and experienced plumbing service provider like Western Rooter & Plumbing, you can guarantee that all your plumbing needs will be met with exceptional services. This investment in preventative plumbing maintenance goes beyond just ensuring the functionality of your properties – it also safeguards their profitability, safety, and sustainability for years to come.
So, why wait?
Take proactive measures today and secure the future of your investment properties with reliable plumbing maintenance services.