Owning a rental property is an attractive investment for many reasons, including dependable passive income and high potential to appreciate. However, attaining an asset as large as a home requires an extensive procedure that can be tiresome.
After going through several listings, it might be tempting to settle for the one that looks like a great deal and skip the homebuying procedure. After all, the price is fair, the location is ideal, and you loved the open house. Why not cut to closing?
However, one of the things investors need to know before buying a house is how important a home inspection is, and we’ll be covering that right now.
It prevents you from closing a bad deal
One of the most significant benefits of conducting a home inspection is it saves you from closing a bad deal. Although rare, some investors find out too late that their latest acquisition is a money pit or doesn’t match the specifications they were expecting. An inspection allows you to assess the actual condition, identify its real selling points, and pinpoint what needs repairs before you commit to buying.
It allows you to anticipate future expenses
You could still consider buying a house that needs some renovation a good deal, as long as the repairs fit within your budget and increase your profit long-term. A home inspector can give you an approximate cost for the necessary cosmetic changes you need to make before renting out the property. So if you need to rewire the building, install a new HVAC system, or change a leaking pipe, you can factor it into your budget.
It gives you a bargaining tool
Discovering that the house on your wishlist requires more work than you initially thought isn’t necessarily a bad thing. One of the things you should remember when purchasing a home is how to negotiate a contract with the help of a Cincinnati commercial real estate company and a home inspection could tilt the odds in your favor. For example, if you’re considering buying a house with some water damage, you might discover that the problem is more extensive than anticipated. In that case, you could ask the seller to give you a discount that covers the additional cost and the added inconvenience.
It secures your tenants’ safety
As a landlord, your tenants’ safety should be your priority. Mold, fire hazards, illegal installations, and other nuisances could threaten their safety and slip under the radar without a thorough home inspection. So it would be best to hire a professional inspector to certify that your next rental property is habitable. Prioritizing your tenants’ safety helps you foster a healthy relationship and potentially save you from a lawsuit.
It is necessary for insurance
A home inspection is a necessity for a landowner to acquire insurance. Some insurance companies are so particular they only accept certification from specific inspection services. Of course, it’s only in their best interest they are aware of the complete condition of the house before offering you coverage. Knowing the complete state of the house also helps you decide what insurance package is best for you.
There’s a saying that, “you should only invest in what you know,” and that applies to real estate too. You need to understand the intricacies of a house by conducting a home inspection before committing to a sale.
If you need some guidance, you may want to hire a property manager before you invest. A local property management expert looking after your best interest at every stage could significantly boost your rental business.