Apart from earning a return, owning a property investment can come with expenses as well – mainly renovation and maintenance costs. Renovation costs can be projected a budgeted for whilst maintenance costs can be unpredictable at times such as having to replace a burst hot water system or roof repairs.
However, there is a way to avoid – or at least minimise – the damage of these unexpected costs to your savings – by devising a property maintenance plan.
A lot of investors have fallen victim to unexpected maintenance costs, but it’s surprising that there are still many who are not aware of the importance of setting aside money for their property’s ongoing maintenance.
Be Always Prepared
One common mistake property owners make is being too confident, thinking that they’re lucky enough not to have to spend too much on the maintenance and repair of their property. But like everything else, you can’t predict what’s going to happen.
Newer dwellings are less likely to require large maintenance budgets however as a property ages money should be allocated for future maintenance such as carpet replacement, painting, upgrades to bathrooms and kitchens etc. You should also allocate a budget towards property improvements such as adding air conditioning or ceiling fans, a dishwasher or storage cage. These additions can increase your rental return, add value and make your property more attractive to tenants in a competitive market.
Right when you decided to purchase a property for investment, you have to be fully aware of all the costs that you would have to shell out in order to keep the property in top shape. Yes, you did prepare for maintenance costs and have outlined a schedule for maintenance and repair. However, the preparation does not end there.
You must be diligent in anticipating possible damages caused by fair wear and tear as they can cause bigger problems to the property if left unnoticed.
This is why we can’t emphasise enough the importance of developing an ongoing maintenance plan for the benefit of both your investment property and savings account.