Side Effects of Rising Property Values in Boise

Though the high demand for housing in Boise seems from the outside like a huge positive for property owners, there are some side effects that need to be kept in mind, some of which owners may not have even considered yet! In this post we will talk about maintenance limits, property taxes, and insurance, all of which should be taken into consideration for 2022.
Housing isn’t the only thing that has had increased demand in Boise; consider the demand for qualified vendors, the rising costs of goods, and employee shortages. With rising labor and materials costs, maintenance limits (the dollar amount that once over, owners require we contact them for approval) need to rise to match. This can actually save owners money while resulting in happier tenants! Timely maintenance and unit condition is often one of the most important factors in tenant satisfaction. Happy tenants are more likely to renew their lease & take better care of the property. When we send out a vendor to diagnose an issue and that issue ends up being over the maintenance limit, the vendor moves on to their next job while waiting for FRPM to get approval. There is often a trip charge/job minimums associated with this that owners will pay now, and then again, when the vendor has approval to return to fix. Very little can be done for under $250 considering today’s costs, so increasing maintenance limits can save time and money!
The rise in property taxes last year was a shock to some owners, with a 25% increase in valuations on average. Did you know that First Rate can make paying property taxes easier and a little less painful this year? Though the bill can’t be sent directly to First Rate, we can cut a check on your behalf if there is enough money in your reserves. If you would like FRPM to pay taxes on your behalf next year, just send us a copy of last year’s assessment and we can work with you on slowly increasing your reserves over a few months, so that you are still getting a monthly disbursement, but will have enough to cover the taxes when they are sent out at the end of 2022.
Speaking of a rise in property values, have you recently spoken with your insurance agent to make sure your coverage is adequate? First Rate suggests speaking to your agent once a year to make sure your policy is where it needs to be to cover the current value of your property.
If you are interested in raising your maintenance limits or in raising your reserve to cover your property taxes, please reach out to Beny – beny@frpmrentals.com. We can also suggest a great insurance agent with experience in rental properties if you are looking for one!