Every autumn, building owners schedule the winterization of evaporative coolers as well as irrigation systems for landscaping. It’s also time to get furnaces ready for the coming winter and check that no major air leaks occur in overhead doors, windows, and entry doors.
While they’re planning, building owners also might want to think about what they intend to do going into the next year about ongoing maintenance contracts and areas where they could be wasting money. They also could tweak rents and cut costs. It’s time to make a real estate investment perform better.
Check records for tenant improvement work that was completed this year and prepare to get that information to the accountant for tax purposes. While you’re at it, calculate how much depreciation you’ve taken on the property throughout your ownership.
Is it time to sell or upgrade your investment? Have other properties caught your eye? Would an IRC Section 1031 tax deferred exchange offer the best method for selling and replacing your investment? Is this a good time to expand your reach into investment real estate?
These represent good questions to ask when considering your present and future status as a real estate investor. One other question that older investors might ask is whether or not a certain investment will be an asset when entering retirement. If a property constantly loses money, is it really an asset? If not, what can be done to make the property perform better? Is it best to sell? It’s a good time to ask these questions.
We’re fortunate to live and work in Western Colorado. Those of us with real estate investments or interest in diving into real estate investing could now enjoy several years of increases in rent and property values. A rising tide raises all ships, as they say, and a growing economy raises the value of real estate investments. This could be the year you decide to upgrade your real estate portfolio, and now is a good time to plan accordingly.
Fall marks the end of the local harvest. It’s a time we turn to winning football games, buying ski passes and planning for the holidays. It’s also a great time to make decisions about real estate investments. The upcoming year could mark one of the best times in several years to buy real estate that has a good chance of appreciating.