Thursday, 08th October 2015
Let's say you go out and spend $50,000 on a new car, but don't keep up the oil and regular servicing - things aren't going to end well, are they?
It's the same with your residential real estate investments.
It just doesn't make sense to spend a few hundred thousand dollars on a property and not look after it, but that's the attitude of some landlords I've come across in my time.
Their attitude is that the tenant can pay, however this isn't the case - it's your responsibility.
You need to keep up with the maintenance to ensure your investment grows in value.
The improved returns will help your bottom-line via a healthy cashflow as you will be able to ask for a slightly higher rental return.
Most tenants prefer a well-kept property not one that is falling down around them.
I suggest that you allow some dollars for some regular maintenance, so when something does need fixing or replacing, the money will be there.
Until next time,