Unfortunately, Lafayette and West Lafayette are the homes of some poorly maintained rental property. We've all seen them. However, most investors know that they should maintain their property. If you are thinking about investing in property in Lafayette or West Lafayette, here are some things to consider:

If you are the owner of an investment property, maintenance is all on you. So when the tenants need repairs, you will need to have local contractors at the ready to make timely repairs, and in order to maintain a good relationship with these vendors, you will want to pay them the day services are rendered. In other words, you need cash on hand.

First, please buy a home warranty on your property when you purchase, especially if it's an older property that may need costly repairs. The yearly cost of a good home warranty is less than the cost of a furnace. It's less than the cost of a new roof. It's less that the cost of a water heater, etc, etc. Even if your property is new, a home warranty will give you an easy place to call in the case repairs are needed. Believe us; new homes need maintenance too!

Additionally, don't count on your home warranty for everything. You're not going to want to call them for every little thing, so keep a percentage of your income from rents available for repairs. What percentage to set aside will depend on the type of building you're maintaining. Typically, the older the building, the higher the percentage. This is not always the case of course...you need to use common sense.

If you ever have questions about investment real estate in Lafayette or West Lafayette, give us a call or email. We always love talking about the business!