Penny wise and pound foolish. Everyone has heard that old saying, but do you really know what it means. At its most basic it means to not choose to save pennys on items that if not addressed will cost you much more (back when this saying first came about, a British pound comprised 240 pennys). How this applies towards real estate investments are many fold, and specifically really seen in the area of maintenance.
In fact, most savvy real estate investors realize that the best way to maximize their returns is to make sure that their investments are well maintained. Not only will a well maintained property maximize their returns, but it will also protect their investment by at the very least maintaining their ROI.
Maintenance is as critical to your investment as any other component as staying ahead of issues can save you money, time and potential headaches. We reached out to our friends at Perma Pier to help us put together a checklist of sorts for routine property maintenance and advice on what to look for to prevent any issues getting out of hand. Here’s a few of the tips you’ll find:
• Walk Thru each unit at least annually to check for small water leaks, that may easily be fixed for a few dollars, vs. replacing damaged wood due to a continual leak.
• Have your electrical system inspected or tested annually: electrical issues account for 24.5% of all reported fires in non-residential buildings.
• Inspect the caulking and weather-stripping around windows and doors: finding and fixing air leaks could save you thousands in energy bills.
• keep an open line of communication with your residents and encourage them to report maintenance items they see and/or feel need attention.
If you’d like more information on different leasing strategies to either improve the bottom line of your property, or to increase its value, please reach out to joe@joekillinger