In a recent masterclass held by Your Empire founder Chris Gray said that while this will definitely bring additional costs, preventive maintenance is actually about maximising money.
He explained that if we look at vacant properties on the market today, most of them are in one or more of the following situations:
"The wrong property, the property is in poor condition, the property with excessive rent or the property manager with the wrong property. "
"All of these things can be managed. If you have the right property and it is well maintained, well lit, renovated and you have the correct property manager, then the vacancy rate should be zero."
"All of these things can be solved. The problem is bad, unrenewed property, run by the poor, or the cheapest property manager."
For Mr. Gray, most of the properties he purchased were renovated almost immediately.
His strategy is "do it once, do it right."
"In most cases, we do not just do a cosmetic reno, but take it back to bare walls. Do it once, do it right. Then, between the leases, you only need to steam clean the carpets, repaint where needed, and then they It will be almost like new," he emphasised.
Although most investors choose to shy away from preventive maintenance due to the costs, Mr. Gray explained that good property managers will convince them of its importance. Talk to your managing agent about the opportunity to renovate in between leases.
During the routine inspection, ask your agent what needs to be done and what preventive work can be undertaken. Then every time the tenant moves out, do the work that needs to be done.
For those who are still hesitant to spend on preventative works, Mr. Gray explained the benefits with numbers.
He explained the damage that long-term vacancy may cause to the profit potential of your investment property. So if the property is not well maintained, you will have a longer period of lost rental income. It would have been possible to carry out some quick renovations in a week or two to put the property back on the market and generate income.
"You have to spell it out. These numbers will tell you what to do. This is what it comes down to. You have to go through this educational process to know what to do."
According to Mr. Gray, this type of education must take many years to be second nature to many investors. Landlords who fully understand the benefits of preventive maintenance through years of education generally don't hesitate to spend tens of thousands of dollars on their investment properties
Luke Jorgensen - Lush Property
Tags - Property Investment; Property Development; Renovation; Valuation; Valuer; First Home Buyer; Buyers Agent; Buyers Advocacy