The Informed Investor, September 25: Why Maintenance Matters
For many, one of the big advantages of property investment is that is it doesn’t require the kind of constant attention that other investment does. And while it’s true that you’re not married to finance bulletins and to actually using the stocks app on your smartphone, thinking that you should avoid spending any extra time and money on your property is a false economy.
As Carolyn Parrella, executive manager at Terri Scheer, explained to Michael McClaren, there are many reasons why proper maintenance of a property matters.
Be the landlord you would have wanted then, get the tenants you want now.
It logically follows that a better maintained property is more valuable. The more well maintained it is, the more appealing it is, the more demand it attracts and, ultimately, the higher the rent. A well maintained property also encourages proper care on the behalf of the tenant and responding well to maintenance requests helps the relationship even further. Happy tenants are likely to stay- and if a tenant stays, a tenant pays.
Spend a little now, save a lot later
Like a chipped windscreen that quickly turns into a cracked windscreen, we’ve all procrastinated on small problems and thus allowed them to grow into big ones. Without the proper attitude to maintenance, the exact same things can happen with an investment property. Don’t want to deal with any big problems? Fix them when they’re small.
Stay out of court
Nothing tanks the bottom line of your investment like having to pay for a lawsuit. But if the property is unsafe due to your negligence, and your tenant or one of their visitors find themselves injured because of it, you’re opening yourself up to a liability claim (this process happens even faster if your tenant happens to be a lawyer in the first place, too).
If you’re ever in doubt about what maintenance is required, you can always talk to your real estate agency or property manager or even request a building inspection to tell you what needs action.
Finally, although all the previous reasons stand, there is one caveat- beware the Block. Whilst the ever-present “reno inspo” might tempt you to take maintenance to the next level and make this the kind of home that you would want to live in, it’s worth remembering it’s still an investment and the maths should rule.
For plenty more, listen to Carolyn’s full chat with the player above.