Monitoring the state of your investment can be the key to achieving success. Much the same as you go to the doctor for a general health check up every now and then, it is important to check in on the state of your investment property.
From time to time, as the years of wear and tear add up, it can be important to assess the performance and condition of your asset.
Monitoring your property’s health is an important task that is vital to ensure success. If your investment’s health can be maintained, it can go a long way to sustaining a good return for a longer period of time.
By looking at the following, an investor can stay on top of their property and any challenges to its health.
State of the property
It is completely natural for a property, whether investment or otherwise, to experience wear and tear. It is simply a part of property ownership that is unavoidable.
Therefore, it is important to look to conduct regular maintenance to ensure that your property stays in top condition and remains liveable for your tenants. By keeping your property healthy and maintained, the chances that you receive a constantly improving return on investment can be better.
Taking a proactive approach to the maintenance of the systems in your investment property, such as hot water or heating, also reduces the stress on you; the investor.
Everyone has heard the horror stories of multiple systems failing at once, leaving a tenant high and dry in the middle of winter.
There’s that old saying; when it rains, it pours.
When an investor is proactive in their approach, they will have regular maintenance conducted on these systems that will reduce the likelihood that they will breakdown.
These systems can cost a lot to fix. Therefore, by taking this action you can be preventing your budget being thrown out the window by unexpected breakdowns (sometimes multiple) that will empty your pockets.
Maintenance is not the only thing that can be done to maintain your investment property.
A fresh coat of paint can help a property drastically by improving upon the aesthetics. The difference a fresh coat of paint can make, in terms of visual appeal, can be very apparent.
It can even work to improve upon the value of your investment.
Doing this also gives you the opportunity to have the walls cleaned and the property in general. The amount of dirt and grime that can accumulate on your walls can be rather surprising. By cleaning them, you can renew the protection for walls against moisture and dirt.
There are many little maintenance tips you can take to ensure that your investment property’s health is on track. By being thorough and regular in your approach, the state of your asset can be maintained with little hardship.
Most savvy investors have a vision for their investment. Those visions are only realised through the constant improvement and upkeep of their properties.
When you take actions to improve an investment property, there are multiple benefits.
Any improvements your make will add to the capital growth that an investment will naturally gain over time. Improvements to your property can also pave the way for potential rental increases that will allow you a greater return on investment.
Other improvements that can be made to add value are:
- Renovate the kitchen
- Renovate the bathroom
- Fixing or replacing old guttering
- Landscaping if applicable
- Additional storage for tenants
- Ensuring that security is of highest quality
As property values can change over time, it is important to consider having a rental appraisal conducted periodically. By doing this, you can ensure that the rent that you are charging is in line with its true value on the market.
Conducting a rental appraisal can allow you to monitor your rental expectations and help you realise any goals that you may have set.
There are more benefits to a rental appraisal than gaining an understanding of your property’s worth.
One of the positives of a rental appraisal is that they are usually free. Therefore, they are a risk-free option that every savvy property investor can take advantage of.
A property management specialist will collect and share information, like expected rental yields or data from similar suburbs, that can assist your property portfolio’s development and offer it to you at no cost.
If you were looking to expand your property portfolio, a rental appraisal is an excellent way to begin the process.
Having regular conversations with your property manager about the performance and state of your investment property is an important part of having an investment portfolio.
Through these conversations, an investor can begin to understand the complex processes that occur in property management like tenant selection and putting in place appropriately priced rent. A property manager’s main goal is to ensure that your investment property is as profitable as possible. Through regular, better quality conversations an investor can begin to understand exactly how their property manager is making this happen.
Your communication shouldn’t be limited to your property manager though. It is important the communication lines with the tenants occupying your property are maintained too. Through this you can stay up to date about the condition of your property and any potential issues that may have arisen like the need for maintenance.
Open and honest communication is vital to maintaining the health of your investment property. Any approach that doesn’t include this on a regular basis will seemingly be less likely to achieve a return on investment than an approach that does.
General Advice Warning: The advice has been prepared without taking into account your objectives, financial situation or needs. You should therefore consider the appropriateness of the advice, in light of these objectives, financial situation or needs, before following the advice. We recommend that you speak to your accountant and financial adviser to help you determine whether direct property investment is right for you.