Spend a little now to save a lot later
It’s news that everyone dreads – your property manager calls saying something needs repairing and it will be expensive. However, there are ways to mitigate this scenario.
Owning a large property portfolio can deliver huge financial windfalls, but just like a business, there are many associated costs that investors need to be aware of, including general maintenance.
Maintenance costs should be considered even before purchasing a property because if you can’t afford the maintenance you can’t afford the property.
Some property investors will ignore maintenance issues simply because they don’t want to spend the money.
However, more often than not, tending to minor maintenance issues now will prevent much larger problems in the future, and could potentially save you thousands of dollars.
This is why property investors need to create a maintenance plan and factor in ongoing maintenance costs to their budgets.
Specific areas that are prone to wear and tear or natural deterioration should be identified and a program of maintenance should be implemented.
For example, if you don’t want to do it yourself, budget for an annual gutter clean before winter.
By failing to do so, investors run the risk of their gutters becoming clogged with debris and may face rusting gutters, which will inevitably need replacing – an expensive exercise in any case.
Similarly, investors should also budget for regular tree lopping, replacement of carpets and fresh painting, among other items.
The amount of preventative maintenance needed will vary from property to property.
However, creating a simple maintenance plan and factoring these costs into your budget will help to avoid major unexpected costs in the future.