Owning a vacation home or property far from where you live is common, especially for investors. In either circumstance, it can be challenging to maintain the property. It is understandable not to have time to manage and take care of a property if you are away for extended periods or do not have a property manager. However, there are serious issues that make doing so a bad idea.
Little to No Return on Your Investment
Whether you own a holiday home or a rental property, you want a good return on your investment. In the case of a vacation home, the return would be having the property available for you and your guests at any time. The obvious return on investment for rental properties is rental yield. Even if the property appreciates due to shifts in the real estate market, you still need to take advantage of a good return on investment by ensuring the property does not sit vacant for extended periods.
Higher Risk for Theft and Vandalism
Vacant homes are a prime target for thieves and vandals. This is because they know there is no one home to raise the alarm or spot them, making these properties perfect for nefarious activities. The risk for both increases the longer a home sits vacant.
Some property owners think their properties are immune from theft because they have no valuables. The opposite is true because thieves will take whatever they find valuable in them. Some will rip the pipes and taps from the property, while some will strip the property of its wiring. The latter is, unfortunately, common in houses left vacant for too long as this gives thieves time to do whatever they like.
Furthermore, you should be concerned about graffiti artists and people who hang posters on walls. Once they see an empty wall on an abandoned property, they will use it as a blank canvas for their art.
Hiring a security company that provides empty property security services to ensure your home is protected from thieves and vandals is a good idea. They will visit the property regularly, ensuring that it remains safe.
An Empty Property Invites Squatters
Any empty property for extended periods provides an open invitation for squatters to occupy it and live rent-free. There are several issues with this. The most obvious is that some squatters will steal from or vandalise the property.
The second, which many people need to remember, is how difficult it can be to remove squatters from your property. Some will go quietly, but some are stubborn enough to want to keep occupying the property.
The best way to keep squatters away is to ensure the property is always occupied when you are away. In the case of a vacation home, you could turn it into a short-term rental property. For rental properties, hire a property manager to ensure high occupancy rates. The added benefit of doing both is an increase in rental yield and thus a better return on your investment.
You Fall Behind on Upkeep
Many property owners assume a property will remain pristine if no one uses it. Such properties get dirty and dusty, and there might also be other problems. For example, you may need to remove cobwebs, repaint the walls if the paint is peeling, and unclog pipes that get clogged due to not being used. You might also need to work on wooden floors if they have issues like warping, cracking and woodworm infestation.
The Property Might Become Dilapidated
This is related to the issue discussed above. Vacant properties suffer more wear and tear than occupied ones. The reason is that any issues that arise are not handled promptly, and they can therefore accumulate. Such properties are also at a higher risk for water damage, electrical damage, pest infestation and mould. The obvious fix for this is to have the property occupied. This way, your tenants will alert you or the property manager of any issues so they can take care of them promptly.
Expenses Can Pile Up
Property owners have several expenses to handle even in cases where a property is unoccupied. Examples include property taxes and utility charges. Additional charges could include costs related to the house being in a gated community.
It is always better to leave your property occupied if you will be away for extended periods. People can take advantage of this leading to a higher risk of vandalism, theft and squatting. You also lose out on a return on your investment or risk falling behind in payments related to the property.