Posted 07th July 2020 by Pillar Property
Apart from setting the standard with your tenants, that the property is being checked regularly and thoroughly, there are other good reasons to conduct regular and thorough routines inspections.
1) Getting Insurance claims paid – In the event of an insurance claim, your insurance claim assessor will usually ask the property manager for a copy of the last 2 routine inspection reports. In the absence of thorough reports showing the property’s condition before your claim, your claim may be denied.
2) Lowering your maintenance costs – small issues if left unattended can become expensive problems and this is where a trained eye will save you money. Preventative maintenance is far more cost-effective than complete replacements. Things such as clogged gutters, deteriorated sealant in kitchen and bathrooms, tree roots becoming invasive, and branches overhanging roofs can be lead to major expenses if not addressed.
3. Improving your income – Most property investors want regular rental increases or ultimately to generate more income from their property. Getting the balance right between increasing the rent and retaining good tenants will determine the cash flow that you generate from your property. The routine reports can provide valuable insight into how the tenants are looking after the property and can play a big part in setting the rent going forward.
4. Minimising vacancies – Regular and proper inspections enable a property manager to build rapport with tenants and when tenants feel respected they will often share their future plans with the property manager. Knowing that a tenant has plans to vacate the property in the coming few months enables the property manager to prepare and plan well in advance, which ultimately reduces your vacancy period.
5. Adding value to your property – Many property investors have the goal of growing their property portfolio’s and this is only possible when their equity base and cash flow allows. Your property manager is your eyes on the ground and can provide you it valuable intel regarding what improvements you could make to the property to make it more appealing and ultimately add value. So when you need to refinance and your bank valuer walks through your property, you can achieve the highest potential value of your property.
And the bank valuer will be a lot more impressed if your tenants have the property well presented.
Should you need any help with your investment property, please reach out to us.