Getting the most out of your investment property
Here are 1LET’s 3 simple tips for getting the most out of your property:
1) Good Maintenance
Maintenance costs can really eat into your profit margins so be sure to keep a weather eye out for what could be on the horizon. Nothing can make a property zero maintenance, but making certain that it is as low-maintenance as possible is really quite simple.
Whenever you have the inevitable ‘big’ maintenance job - whether that be replacing a boiler or rewiring - invest in quality. If you cut corners on these jobs you can end up paying far more further down the line when it suddenly needs replacing again or even floods your property. When something needs replaced see it as a chance to improve your property - remember it’s an investments, so invest!
Preventative maintenance is also incredibly important! Replacing the silicone seal around a bath every few years costs hardly anything, but having to replace rotten floorboards after a prolonged leak can be exorbitant. Remember cutting corners (or ignoring a problem!) may save you a few pennies in the short term, but in the long term it’ll cost you far more.
2) Keep Long-term Tenants
Changing tenants can also cost you a surprising amount, and not just when there are void periods. The costs of new tenants can really add up, especially when you consider letting fees, inventory costs, fixing any ‘fair wear and tear’ caused by the previous tenants, updating any compliance work, etc ad nauseam.
Value your good tenants. When you find tenants that pay their rent promptly and keep your property in a good condition then do your best to help them stay as long as possible. Tenants can leave properties over little things that you may think are unimportant: imagine that after a time your tenants ask you to replace a mattress. You might believe that the mattress is perfectly fine, and be reluctant to shell out on something so seemingly frivolous. But then you’re not the one sleeping on it every night. Doing that little be extra to keep tenants comfortable and secure is the key to long lasting tenancies.
3) Keep your property attractive
Tenants want a property that they can be proud to live in, it’s really as simple as that for maximising your properties worth. Properties can start to look worn and dated after only a couple of years, and you’d be surprised how much you can increase your yield simply by repainting or replacing some furniture. Budget for a redecoration every 5-10 years and your property will always stay attractive, let quickly, and give you the highest returns possible.
Watch out for any communal areas too, and make sure that they stay clean and tidy. It may seem a bother taking it upon yourself to organise something with the owners of the other properties, but it doesn’t matter how good your property is if the entranceway of the building is a disaster.