Maintenance is often viewed as an expense by landlords, unwanted and often unplanned at that. However, it’s best to deem money spent on maintenance as an investment rather than an expense. Expenses don’t offer a return on investment, the money is gone for ever once the expense is paid.Maintenance really is an investment in your investment property that will either make, save or earn you extra income into the future.
Make money through maintenance
Maintenance and repairs will make your property more valuable and ensure that the value of your home rises on trend with the broader market, if not above it. Buyers can often tell the difference between a treasured home and a long-term investment property. Homes are usually maintained better than investment property. Sure the landlord has saved money over the years on maintenance but the “saved money” can be wiped off the sale price and more to boot.
Maintenance along the way makes the investor money in the end.
Save money through maintenance
A small but non urgent maintenance job left unattended can quickly become a large expensive issue. If you are vigilant and proactive with maintenance, you will spend a bit more in the beginning and save a lot more in the end.
It’s uncanny how the property manager and tenants attitude toward a property often reflects the respective owners. If the owner is attentive and responsive to maintenance issues, so to will those around them. An attitude of attention to detail can save investors on many fronts.
Earn money through maintenance
The one major mistake landlords make with maintenance is they assume the tenants will benefit at the landlords expense. This is completely false. When a property is well maintained, both the landlord and tenant benefit. And the relationship is far more cordial.
To prove the point, consider the family home and the long term investment property competing in the market for a tenant. All things being equal in regards to the properties features, if a family decide to lease their treasured (maintained) home out for the first time, it will nearly always lease quicker and for a better price than a pre-existing “investment property” that has not been maintained.
Well maintained properties lease quicker and lease for more. The maintenance earns the landlords more whilst providing a happier and better quality tenant.