Buying an investment property is a great way to build up your assets and hopefully generate a passive income that you’ll be able to rely on well into your working years and maybe even into retirement. But it’s not as simple as a once-off purchase, you’ve still got to ensure that your property is properly maintained, to combat against depreciation and to ensure it’s always able to generate the income that you expect from it. Maintaining an investment property can often end up being a costly exercise if it’s not done with the proper care and attention. To help you make the most of your maintenance budget, here are five handy hints to ensuring cost-effective upkeep of your property.
Communicate with Agents and Tenants
To keep an open line of communication with your property manager and tenants is integral to ensuring that small maintenance issues do not turn into large-scale repairs. If you’re constantly kept up to date on anything on the property that needs attention, you’ll be able to fix it up before it becomes a bigger problem. It’s usually much more expensive to conduct regular maintenance than replace things.
Create a Maintenance Plan
Get an idea of all the maintenance you’ll need to carry out on the house and how often. Create a plan that will allow you to budget the time and money you’ll need to ensure this maintenance is kept up to date and on time. Whether it’s new flooring, new paint, termite checks or simple landscape maintenance, it’s important to create a schedule which will allow you to stay on top of your property maintenance rather than end up with a big bill for multiple services and repairs between each tenant.
Do the Small Stuff Yourself
Wherever possible, conduct any maintenance and repairs yourself. By sacrificing a little of your time on DIY maintenance, you’ll save lots overall on the cost of having somebody sent to the property to do it instead. Be sure to know your limits though; don’t risk doing something that you’re not totally confident you can do perfectly. Fixing mistakes is often more costly than sending somebody else to do it in the first place.
Leave the Big Stuff to the Experts
As stated above, it’s often very costly to fix up botched maintenance jobs, so if there’s anything that should be carried out by an expert, always use a reputable service provider. If you’re qualified in the applicable area then go ahead, but unless you know exactly what you’re doing, you should always leave the bigger jobs up to the professionals if you want to save your time and money in the long run.
Invest in Quality
It’s an easy trap to fall into; going for the cheapest option. While it might save you money now, if you opt for the cheapest service or goods for your property it will ultimately end up costing you more money in the long run. Having to constantly repair or replace items around the property, or re-do maintenance because it wasn’t done correctly in the first place, is never a favourable option. You’re better off doing some research, finding the best value items or services, and choosing the option that will get you the best quality for your budget constraints.
If you’re currently unsure about whether or not you can handle an investment property, it’s truly a simple exercise once you’ve got these steps down-pat. Why not have a look at the current available properties on the market, do some research into the costs you’ll be incurring and consider whether you can take the plunge into investment home ownership? A good example is Plantation homes, who build affordable new houses with great rental potential.
These are simple and achievable ways to keep your property in tip top shape without busting your budget. Do your research, be well organised, and you’ll have no trouble following these tips and effectively managing your valuable investment.
Written by Nathan Hanson