Monday, January 25, 2010

Back to Basics - tip2

Tip 2
Look after your Property

Have you ever walked into a brand new or refurbished house? Remember the fresh smell of paint or the sweet smell of Mr Min. Well maintained properties attract quality tenants. All properties deteriorate over time; a seasoned investor understands the power spending to maintain the property. Remember the money spent is a tax expense set off against the taxable income.

When I purchase a new property, I like to re-tile the whole unit or at least tile the carpeted area. Tiles are easier to manage when tenants move in & out. Tiles also have a longer life cycle and are less likely to look grubby when viewing the property to prospective tenants.

Many landlords who use the services of a letting agent do not visit the property regularly if at all. They rely on the letting agent to keep them informed about the condition of their property. Some damages can be claimed back from the exiting tenant’s deposit, but some investor maintenance will be required on an ongoing basis. The re-painting of the property or replacement of certain fixtures, I have purchased properties where the original 20 year oven was still in the unit with only 1 plate and the grill working. It is wise to spend a small annual amount, than wait 4 years down the line and burden the landlord with a large cash output.

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