Regular maintenance the key to a satisfactory lanlord experience
Category Weekly Advice
One of the less satisfactory facts about the flourishing buy-to-let residential property market, says Rowan Alexander, Director of Alexander Swart Property, is that enthusiastic investors tend to overlook the importance of maintaining and repairing their properties after the first two or three years.
“In most cases in the initial years of home ownership investors are meticulous and very hands-on about looking after (and regularly improving) their properties. Then, regrettably, there is often a tendency to ‘let go’, sit back and just watch their rents roll in.
“It is easy,” says Alexander, “to understand how this situation comes about.
“A typical rental property purchased at R 1.1 - 1.2million will yield a rental return of R 8000pm. If this rental escalates at an average of 8% per annum, ten years down the line it will have risen to R17,271 per month, i.e. be giving a 20% return on the original investment, whether or not the property has been well maintained and whether or not it appeals to a new generation of tenants.
“However,” says Alexander, “to assume that maintenance is not really necessary is very short sighted indeed, not only because it can lead to dissatisfaction in the tenant but also because a property eventually put up for sale which is not in good condition will sell well below its true market value.”
Maintenance, says Alexander, is seldom a financial burden if it is done as an ongoing exercise.
“We like to encourage our investors to set aside 10% of their earnings for repairs and maintenance every year,” says Alexander, “and to keep up a regular maintenance programme.”
The areas most often needing attention, says Alexander, are kitchens and bathrooms.
“In these rooms, components such as doors, cupboards, shelving, counter tops and flooring can easily acquire an old or worn out look,” says Alexander. “but it can be revelatory to see how much better these look when they are replaced or upgraded with new materials.”
Author: Independent Author
