Maintaining your investment property

As a landlord, you may have purchased your investment property, and have a tenant and tenancy agreement in place, but what about continuing the ongoing maintenance and upkeep measures to ensure the investment performs at its maximum potential? It’s important to maintain the value of your asset to ensure it continues to grow for you.

Maintaining your investment property should be an essential part of your investment strategy, and there is some maintenance that is required by legislation, such as landlords responsibilities for smoke alarms. Watch this video as Joanne Danckwardt discusses the importance of looking after your investment property, and how you can manage it.

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 The economic realities of maintaining residential investment properties require genuine commitment and should be properly managed, budgeted, and accounted for from the beginning.

Plan ahead

Being able to forecast various updates and costs is a beneficial skill when it comes to property investment planning. Consider where, when and how your cashflow will be coming in and realistically examine expenses related to holding housing investments, at various points in time. This will provide a realistic comprehension as to what type of investment you can afford and the best type of housing asset suited to your circumstances, helping you to ascertain what to look for when buying an investment property.

When planning for maintenance costs, consider the occasional upgrade. This will not only maintain the value of the property, but allow for the property to continue to attract tax depreciation benefits - talk with your accountant about more tax time tips.

What to plan for

Investing in a residential apartment building, such as units or townhouses, will usually see a body corporate in place, who will oversee the maintenance of the building and any communal spaces, such as car parks, laundries, and gardens. When you own an apartment in these buildings, you will be required to pay an annual (or quarterly) body corporate fee, and may be required to provide additional funds for capital works as necessary, for example roof repairs following storm damage. Body corporate fees, sometimes known as strata levies, can vary, and should be fairly reflective of the type of maintenance buffer investors should prepare for, relative to the size and type of dwelling owned.

Emergencies

If left unaccounted for, emergency repairs can quickly eat into any cashflow buffer or savings.

Consider what constitutes an ‘essential item’ in a rental property, according to legislation. Then calculate how much it would cost to replace these items, should the need arise. For example, heating and cooling systems, cooking appliances, plumbing or electrical infrastructure and hot water services. Have at least this amount of money accessible in a separate account. You should be aware of what insurance a landlord requires, and what you will and won't be covered for in an emergency. Emergency repairs are a part of rental compliance required to be adhered to as a landlord.

General repairs and maintenance

More regular repairs and maintenance items should also be factored into the budget and calculations for your property portfolio cashflow forecasting. Remember that your investment property is working for you every day, generating an income. As such, you want to make sure it remains productive and viable.

Consider how you can keep your investment presentable and inviting. First impressions count in real estate. You could you potentially attract and retain better tenants, and also have a better chance to maximise returns. This money you put in can come back to you with dividends.

Landlords should also ensure they know the difference between fair wear and tear and damage for the rental property, and be prepared to work with the tenant to resolve any maintenance concerns.

If you're ready to discover how you can rent out your property with confidence, download our free Step By Step Checklist to Renting Your Property with Confidence.

YES, DOWNLOAD MY CHECKLIST

If you feel you could benefit from our experience with property management, we’d love to hear from you. Simply reach out.  We hope that has helped you today. If you have any questions, we’d love to talk to you. Our number is 0426 264 771 or 0455 147 755. We look forward to talking to you soon.