If you live in the Northern Hemisphere, Spring has sprung! I do not know about what spring means in your part of the world, but when I think of spring I think of longer days, warmer temperatures, green grass, budding trees, and blooming flowers. When I was a child, Spring also brought with it my mother and grandmother’s desire to do some spring cleaning. Spring cleaning for my mother and grandmother basically meant giving attention to things that normally you do not attend to.
In the month of April with winter behind us, there are things that I encourage you give attention in your real estate investments. Like spring cleaning, these are things that most real estate investors (or note investors) give only occasional attention. I commend them to your attention sooner rather than later. They are as follows:
1. Property Insurance- If you have property that you rent, do you have adequate insurance on your properties? Property values have appreciated greatly in many areas. Talk to your insurance agent to see if you need to increase your insurance coverage. While you are speaking to your insurance agent, check to see if they think that your other property coverage is adequate (such as liability coverage). If you are a note investor, check with your loan servicer to make sure that the property insurance is being paid.
2. Property taxes- If you are a note investor, check to see if the property taxes are being paid regularly on the collateral attached to the note. This is important as you do not want for the property to be sold sold at a tax sale! If the taxes are esgrowed by the loan servicer, this should be easy to do. If the borrower is paying the taxes directly, check online to see if they are paid.
3. Property inspection- This is a good time of year to inspect properties that you have an interest in. If the property is attached to a note you own, drive by the property to see is the properties is being kept up by the tenants. If the property is some distance away, a property preservation company can schedule a person to do a property inspection. If you have rentals, check out the condition of the roof, the gutters, the HVAC system. It might be wise to do an interior inspection to see if the smoke/fire detectors are in good working order. Does the exterior of the property need paint or any repairs? Do any of the trees need trimming?
The items mentioned above are not things that occupy your attention all the time. Yet, each of them is important for the real estate investor and the note investor. Ignoring these things could be perilous for the rental investor or the note investor. Wiahing each and everyone of your continuing real estate success.- R.L. Wall