Purchasing and renting an old house is a great way to bring in some extra money, and many renters love the personality that comes with an older home, but it is important to prepare for the challenges that come with old homes. This article will cover the maintenance and repair concerns that might come with purchasing and renting out an old house.
Purchasing an old home can be a great way to expand your real estate portfolio with properties that have a unique character and an appeal that many renters love. Particularly in historic regions, homes with these classic styles and striking exteriors can be highly sought after by both purchasers and renters.
However, there are several important aspects of owning an old house that you should consider, particularly maintenance concerns. Expensive maintenance and renovations may be essential for the maintenance of older homes, so it is important to have any homes inspected by a licensed professional before you purchase.
Old Homes Can Be Expensive
While an old home often has a level of character that newer builds lack, its age can show in a variety of ways. Building materials often deteriorate over time, and not every owner keeps up on home maintenance. Additionally, even those who maintain their homes meticulously often do so without the assistance of experienced tradesworkers, who would be able to point out and prevent mistakes or poor workmanship.
Maintenance May Be More Frequent
With old homes come old appliances and fixtures. Old wiring or plumbing might be more easily taxed and damaged, which can mean more frequent visits from maintenance. Electrical issues can also leave your property at risk of fire, and old or damaged plumbing can cause flooding, so it is extremely important to have these systems inspected regularly.
Learn more: How to Develop an Annual Maintenance Plan
Renovations Might Be Necessary
Outdated and obsolete systems might necessitate renovation or replacement, especially if you want to decrease the frequency of maintenance issues. Insulation, HVAC, and various other systems may need extensive maintenance, if not outright replacement, in the process of getting an old house rent-ready. Roofs, windows, and siding may also need redoing to bring the house up to the best possible condition before renting it out.
Even if not necessary for the prolonged livability of a home, you may need to make upgrades to dated furnishings such as paint and flooring to appeal to a market of renters. As a tip, when updating for aesthetic reasons, seek out timeless designs rather than following trends. While classical or simple designs tend to age well, more modern trends will often look dated very quickly and have less universal appeal. Often, if a renter is seeking out a historic home, they will prefer that home to look historic inside and out.
Learn more: 13 Renovation and Rehab Strategies for Real Estate Investors
Risk of Asbestos or Lead Paint
Older homes, particularly those built before the 1980s, may have lead paint or asbestos in their construction. If you purchase an old house, it is essential that you test for these materials before renting it out. If lead or asbestos are found in the property, you can have it professionally removed to eliminate the health risk and create a safer living environment.
Both lead and asbestos are highly dangerous, toxic substances. Exposure to these substances can cause severe illnesses, especially in children or pregnant women. While houses older than 1900 are far less likely to have asbestos in their construction, lead paint has been used for much longer and may still be a concern.
Learn more: Safety Checklist For Rental Properties
Pests and Mold Concerns
Old houses, particularly those which have been sitting empty for an extended period of time, are prone to mold and pest infestations. When purchasing an old house, ensure that you have it thoroughly inspected for both of these. Pests and mold can both pose a health hazard to you and your tenants, so eliminating and preventing these issues early on will save you headaches in the long run.
You may also be able to identify hot spots for mold to grow or pests to enter the home, such as locations with leaky faucets or cracks and crevices in walls. These can be patched and repaired to minimize future pest or mold issues and prevent stressful maintenance in the future.
Final Thoughts
Old homes can make great, charming rental properties if maintained properly, and they can be an excellent investment. However, it is important to know what you are getting yourself into with an old home and be prepared to resolve these common old house issues. Preventative maintenance and renovation are always better than having to conduct an emergency repair, so make sure to have the home inspected before you buy it and to conduct regular inspections throughout the course of your tenancies.