Top value-adding jobs property owners and investors neglect

Property experts are warning investors who skip regular maintenance could face repair bills five times higher, with these two jobs in particular requiring the most attention.

Property has long been considered an excellent investment choice in Australia. But while land value tends to go up over time, buildings tend to fall into disrepair – making regular maintenance an important part of ensuring homes and investment properties hold their value as the market rises.

However, not all investors keep this front of mind, says owner of Ray White AKG Avi Khan.

“I think investors generally buy properties and don’t factor in the maintenance costs these days,” he says.

“The capital growth is what most investors look at now but they should also factor in maintenance costs for their properties for the next three to five years.”

Founder and managing director of the ASPIRE Property Advisor Network and PIPA director Richard Crabb agrees that a proactive approach to maintenance is key. He suggests investors treat their properties as a business asset by doing maintenance and strategic upgrades to ensure they achieve the best outcome over time.

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Strategic upgrades can help you maximise your investment over time.

REGULAR MAINTENANCE

To do this, Crabb suggests landlords get a roof inspection and have the gutters cleaned every 12-18 months as best practice.

“It’s not up to a tenant to get up on the roof and clean the gutters,” he says.

“If the gutters get overrun and filled with rubbish that can create water damage and issues for the property.

“Another one is airconditioning servicing – a lot of investors don’t think about it until it’s too late. But there can be mould, dust and build up can happen.”

He says regular servicing can prevent issues with health and liability while prolonging the life of the airconditioner.

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It’s important to get the gutters cleaned regularly.

Khan says landlords should factor in certain “non-negotiables” when budgeting an investment purchase like roof and gutter maintenance, termite protection and general paintwork.

“We estimate that every landlord should put aside $3000-$4000 a year just for maintenance works every year,” he says. “The same should apply for property owners living in the property.”

He says it’s important not to ignore critical maintenance requests, as these can easily grow into much larger sums if not dealt with swiftly.

LOW COST HIGH IMPACT

When it comes to keeping the property looking and feeling fresh over time, there are certain “low cost, high impact” updates that can go a long way, says Khan. These include repainting the house or replacing the carpet.

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Principal of Ray White AKG, Avi Khan

PIPA board director and managing director of the ASPIRE Property Advisor Network Richard Crabb.

“These are the things that buyers notice instantly,” he says.

Crabb recommends replacing or deep cleaning the carpet every five to seven years depending on the condition it’s in. He says it’s better to do these things as you go along rather than at the time of sale because it will enable you to attract better tenants and maximise your rental return.

CONSEQUENCES OF NEGLECT

If you haven’t kept on top of regular maintenance over the life of your property, you could have a hard time capturing the attention of buyers when you sell, says Khan.

“When it comes time to sell a property, you’ve got 10-15 seconds to make a good impact on the buyer,” he says. “If you don’t keep up your maintenance, if you don’t give your house fresh paint and carpet and all the other things over three or four years then it’s likely you won’t get the price that you want.”

Upgrading the flooring can be a relatively inexpensive way to keep a property looking its best. Picture: Janine Eastgate

If you do want to fix any problems before you sell, you could be in for a nasty surprise, he adds.

“If you don’t do your upkeep in terms of your gutters, roofs and things, your $3000 is looking like a $15,000 bill in a couple of years’ time,” he says. “That’s the drawback of just ignoring things. You won’t be able to sell for a premium price and then when you do go to do those repairs you are going to be spending so much more money.”

MAINTENANCE CHECKLIST

Make sure you stay on top of these top maintenance jobs to ensure your property holds its value as the market rises:

* Roof inspections

* Gutter cleaning

* Safety inspections, including smoke alarms, gas inspections and pool compliance

* Termite inspection and protection

* Airconditioner servicing

* Repainting

* Refreshed or replaced flooring

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Originally published as Top value-adding jobs property owners and investors neglect