When learning the best way to start real estate investing, you’ll quickly find out when you can (and when you shouldn’t) DIY certain repairs or upgrades for an investment property. Whether you invest in rental properties or choose fix-and-flip homes to build your real estate portfolio, buying a fixer-upper or older property may come with certain electrical complications.
One of our top real estate investing tips is that buying these properties can be more cost-effective and provide bigger returns for real estate investors, but you’ll also need to put in a bit more work to get these properties ready to sell or rent. If you’re faced with the possibility of performing any kind of electrical work, you might want to think twice about attempting this work on your own. Some DIY dangers simply aren’t worth testing.
Successful real estate investors always recommend surrounding yourself with the best of the best when building a real estate investing team! That includes vendors and professional technicians to make essential property repairs. Here’s why you should always hire a professional electrician when any kind of electrical work is needed at your investment property.
A DIY Approach Can Be Tempting
Many would agree that home improvement jobs have been on the rise over the last few years. These renovations increased in popularity during the pandemic when people were forced to spend more time at home, but this trend started long before the pandemic kept more people at home.
From an investor’s perspective, buyers and renters look for specific qualities in a home—and it’s essential to deliver what they want to maximize returns. However, aside from amenities, all homes flipped for resale or renovated to become a rental property need safe, licensed electrical work before they’re ready for new owners or renters.
However, isn’t professional electrical work expensive? If you can run down to the local home improvement store and find what you think you need to fix wiring or replace fixtures and switches, shouldn’t you try to save money and do these things yourself? For many people looking for the best way to start real estate investing, they’ll find that the consensus is to DIY whenever possible. It’s easy to understand why, as taking a do-it-yourself approach can often feel like you’re saving both time and money.
If you already possess a good working knowledge of property maintenance, you can probably handle some basic upgrades on your own. For example, painting cabinets and walls, replacing hardware, and changing electrical outlet cover plates can all be easily accomplished even by those with relatively limited experience.
However, that doesn’t mean that you should handle every task involving your investment property.
Successful Real Estate Investors Don’t Take Undue Risks
Knowing how to start investing in residential real estate and building a successful business involves recognizing your limits. We all bring different things to the table. You may have an incredible gift for finding property deals, especially if you use the Privy platform. You might also be skilled at recognizing the best interior design trends for a property or even performing some carpentry work on-site.
However, most savvy real estate investors embrace the reality that there are certain property upgrades and aspects of their business that they shouldn’t touch without the help of professionals. For many investors, that includes anything about HVAC, plumbing, and electrical work. These systems are central to a property’s functionality and are among the most complicated to fix. In addition, in most markets, licensed professionals must complete this work to follow local ordinances and allow you to operate rentals or sell flipped properties while complying with the law.
If you don’t possess the training, knowledge, and certifications to tackle these jobs with total confidence, you could be taking a huge risk if you try to handle them on your own—both with your investment and your safety and the safety of your tenants or future homebuyers.
What Could Go Wrong With DIY Electrical Work?
We’ve touched on a few things already, but you might still be wondering what could go wrong with electrical work? When weighing your budget vs. potential returns vs. a looming electrical project, here are a few reasons why investors should have a licensed electrician on their real estate investing team.
Delays and Unforeseen Costs
At first, it might seem cost-savvy to DIY. However, if you aren’t an experienced electrician, the chances are that you’re going to do something wrong. At best, this can result in project delays and unexpected costs, as you’ll then need to hire a professional to fix what you’ve messed up. In addition, adding costs and delays to your timeline can impact your bottom line. In the end, going the DIY route will end up costing you more and hindering your progress when learning how to start investing in residential real estate.
Safety Risks For Occupants
Without enough experience, you could cause faulty wiring or incorrect installation of fixtures and switches. Ultimately, this could result in significant safety hazards for you, your team, and potential buyers or renters. You have a legal obligation to keep your property safe, so you’ll want to eliminate any possible risk of an electrical fire, electrocution, or another disaster. Hiring an electrician isn’t just the right thing to do; it’s the smart way to ensure your safety and protect your investment.
We mentioned above that faulty wiring and other electrical issues can lead to delays. This can also apply during the inspection process. Although some home sales are no longer contingent upon inspection, given the competitive nature of the real estate market where you invest, you’ll certainly need your property to pass inspection if you plan to rent it out. If the electrical work is completed by anyone other than a licensed and insured electrician, your property will likely sit vacant much longer than necessary and create problems for your business returns.
For the areas of the property that matter most for health and safety, a real estate investor should make it a habit to partner with specialists. Your tenants or buyers need running water, working electricity, and consistent heat—all without risking their well-being. Plus, with a quality electrician on your team, you reduce the amount of time, expense, and income loss when flipping homes or renovating a rental home.
Leave Real Estate Investment Electrical Work to the Professionals
We know that it’s tempting to handle everything yourself, especially if you’re worried about your bottom line. However, it’s much better to curb initial costs by finding a great real estate investment deal on the Privy platform than to cut corners when renovating your property.
Adding extra costs to your budget might cause your blood pressure to rise, but it’ll be a far worse outcome if you take a chance on safety by cutting corners or relying on your own skills to tackle jobs that a professional should handle. Some electricians can be expensive, to be sure. However, once you find an affordable and reliable electrician, build that relationship and partner with them for all of your investment properties. Then, you’ll make the most of the great deals you find on the Privy platform by protecting your investments from start to finish.
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Get more information about building the best team for success when downloading a free copy of “Assemble Your Real Estate Investing Team: A Worksheet.”