Pay Off Your Property or Buy More? + Handling Repairs with Tenants in Place (Rookie Reply)
Summary
This BiggerPockets article discusses handling rental property repairs with tenants in place, including temporary housing and tenant requests. It also touches on refinancing and evaluating equity in your STR properties. Hosts should consider the costs and legalities of providing temporary housing, and evaluate their properties' equity to potentially redeploy capital for growth.
Key Insights
- •The article highlights the importance of evaluating your portfolio and refinancing. The choice is determined by the individual's risk tolerance and financial goals, such as maximizing growth or prioritizing cash flow.
- •The article discusses the potential for a landlord to provide a temporary housing solution for tenants during a repair. In this specific case, the tenants requested the landlord pay for a moving truck and the costs associated with moving their belongings.
Action Items
- ✓Regularly assess the equity in your properties to determine if refinancing and redeploying capital into new investments or property improvements makes financial sense for your goals.Effort: mediumImpact: medium
- ✓When repairs require tenants to vacate, explore options like a gym pass or paying for a dog to be boarded at a kennel to help lessen the disruption and mitigate costs and liability.Effort: lowImpact: medium
Common Mistakes
- ⚠Providing temporary housing without a proper lease agreement can create liability issues, particularly regarding damages to the temporary unit.
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