Imagine you were able to purchase a luxurious grand piano, complete with all the historical paperwork to indisputably prove that such a grand piano had once been owned by the genius Mozart. But you decided to store it in a room where it eventually accumulated dust, rust, and termites and was soaked by a leaking roof. The damage incurred requires irreversible repair. The value of your grand piano has greatly diminished.
If only you cared to maintain the room in which it was housed, then not only can there be confidence to demand a higher value for the grand piano, but in effect, the profitability of the room itself will considerably demand a higher rate too.
Here are some reasons maintaining your investment property is essential:
Table of Contents
Value
Even though your investment property may not have any historical significance still, the concept above remains consistent. The value of your property depends on its quality, and the quality of such is determined by the consistency of how it is properly maintained.
It is safe to say that value and maintenance are mutually exclusive. Thus, to say that maintenance is unnecessary qualifies as counterproductive. To ensure that your property can demand competitive profitability, it is paramount that its value must be sustained through something as simple as maintenance.
Maintenance that is performed on the house not only serves to maintain its value but also helps to increase it. This is because the worth of a property is determined by trying to compare it to identical rental homes in the same neighborhood. This means that homeowners can make significant upgrades to their properties to the point that they operate as a standard against which the market of other rental homes is evaluated. This is accomplished through routine regular inspection and planned enhancements to the property.
Strategy
For whatever purpose or business design you may have in store for your investment properties, and it is in your best interest to have continued preservation of the property itself. It is within proper diligence that a significant piece of your strategy, which is your property itself, can hold its own when you make your business move.
Investing in investment properties can be a terrific strategy to accumulate money over the long term. You can receive additional income from monthly payments and take advantage of tax incentives at the same time. Before you begin investing in investment properties, educate yourself on the different types of rentals available and decide which property investment strategy resonates with you the best.
Planning
One of the objectives included when it comes to business planning involving investment properties is that of preparation for worst-case scenarios. One unavoidable adversary for property owners would be that of environmental alterations. They come in many ways, sometimes predictable like a storm update and, most often than not, unforeseeable like earthquakes. Though these are categories within the definition of force majeure and covered by insurance, it is best to ensure that damages incurred are of a minimal level. A maintenance buffer can help increase the achievement of such.
Repairs
Emergency repairs are essential. Make sure that you can contact emergency plumbers to help you with your plumbing needs. When it comes to crunching your numbers, it’s difficult and exceptionally complex to include a category for Emergency Repairs. Instead of having an ‘Emergency Repairs’ for your accounting, it would be most convenient to have that budget under maintenance.
In the long run, budgeting for emergency repairs would prove costly and leave your financial blueprint inadequate. To include regular maintenance as part of your financial flow would most definitely and considerably lessen and at best eradicate the need for expensive fluctuation of repairs.
Attraction
In analogy, regular maintenance for your investment property can be likened to personal hygiene. Shave the beard, trim the hair, clean the nails, and make it look fresh, presentable, and profitable.
First impressions in the real estate business are everything. Your business hustles hard for your everyday, retention and attraction for new viable and dependable tenants is somewhat dependent upon the grooming and consistency of your real estate’s durability and capability.
Even most, if not all, business establishments encourage and may require their employees to be presentable at all times. This strategy that includes the assumption that representation is a form of presentation is not uncommon in the business sector.
It goes the same with your real estate investment, only this time, the consistency of your well-managed presentation of your property solely relies upon the regular maintenance of your investment property’s inherent capabilities.