Add or maintain value

08 Jun 2015| Posted by: Geoff Baldwin

Once you have chosen and purchased your investment property it is important that you add value by maintaining or improving the property. If you do purchase a house that is in a run down condition, be sure before you make it available to tenants, that you renovate it to top standard. These costs should be taken into account when you make your offer to purchase as history show that many “run down bargains” by the time they are renovated, turn out to be more expensive than buying a house that is already in top condition. If the property you purchase is in excellent condition when you take possession, it is important that you make every effort to keep it that way. Respond to the tenant's reasonable requests for maintenance and fixing the small items while they remain small. History show that good tenants are attracted to well maintained and located properties while run down and poorly maintained properties attract the worse tenants who by their very nature, continue to damage the property. If you keep your property in A1 condition you will always have the best tenants who will look after and respect your property and pay you the maximum rental income. Another benefit is that your properties will always value at a premium price if they are looked after, making it easier for you to borrow against them when you choose to increase your portfolio.