As a landlord, property maintenance costs cannot be ignored. And sometimes it can become excessive if you don’t know how to reasonably service your property.
The effort doesn’t stop once you’ve bought a residential property, especially if you want to let it out. Long-term protection of your investment is only ensured by appropriate property care. It is the best way to keep tenants satisfied and preserve your property’s condition.
In this article, we will discuss the various types of property maintenance costs that you may incur.
What is Property Maintenance?
Property maintenance is essentially the management and upkeep of a house, flat or rental property. This includes buildings and commercial properties as well. Regular property maintenance ensures safety and satisfaction to occupants, making it more likely for them to extend their rental period.
The primary purpose of property maintenance is thought to be responding to maintenance requests from tenants, although other duties include keeping up with the landscaping, servicing HVAC (Heating, Ventilation, and Air Conditioning) systems, pest control, and even cleaning.
Poor maintenance can lead to unnecessary trouble. Hence, many experienced property owners emphasise routine maintenance to reduce the risk of customer complaints and reputation.
How to calculate property maintenance Costs?
Property maintenance cost varies from repair to repair, or property to property. Some are regular, and some are due to sudden repairs.
The calculation is pretty straightforward.
Total maintenance cost = Total Labour costs + Cost of material parts + Miscellaneous Invoices
Labour costs: the number of hours technicians spend repairing or maintaining a property multiplied by their respective hourly rate.
Material parts: the cost to purchase parts, such as air filters for air containers, piping, etc.
Miscellaneous expenses: energy costs, supplier contractual costs, outsourcing, retainers, etc.
What are the property maintenance costs?
As a landlord, it’s your responsibility to keep up-to-date with what repairs are needed to be made to the property. Plumbing and electrical repairs are common occurrences in any household.
Most often than not, parts cost less than the actual work, as it is time-consuming to repair and requires expertise. Hence, your bill will depend on the complexity of the repair and the time it takes to get it fixed.
Refurbishment and Decoration
It is advisable to replace carpets every 5-7 years and that homes be completely redecorated every 5 years. However, if your property is looking particularly lived in after a tenancy, or you come across some questionable stains, you might need to redecorate more often.
Therefore, being a good landlord and recruiting the ideal target tenant depends on keeping your home appearing clean and presentable for prospective tenants.
This is a no-brainer, as this is where your tenants live. A water leak could be ruining the paint. If water collects somewhere, it could be a breeding ground for insects, especially in the warmer months.
From plumbing systems to peeling wallpapers, the interior needs careful attention and must be attended to regularly.
Maintaining the exterior can also help you avoid long-term financial costs and structural problems in the future. For example:
Inspections are an important part of property maintenance. It is especially crucial during a vacancy period. Regular inspections protect your property from theft, vandalism or damage from unnoticed leaks, preventing the need for extensive future repairs. Either you, the landlord or your estate agent can perform these inspections, at time slots, convenient for both you and the tenant.
Landlords and property managers can provide safe conditions for their renters by performing basic safety and maintenance procedures. Safety checks will help you address risks before they cause high-cost damage. Or even cause some physical or psychological damage to the tenant, causing you in turn distress and making way for legal issues.
Rental property safety includes keeping tenants safe from physical harm from insecure or damaged structures and reducing the threat of criminal intruders.
Landlords should consider investing in a full management service so they can get more time to spend on other aspects of their business. Otherwise, they will have to spend their own time taking care of the maintenance. It is very beneficial if you are renting out more than one property if you live abroad (so you are an overseas landlord), and if you never intended to be a landlord, to begin with (so you are an accidental landlord). It is, after all, your time and you should be wary of how you invest it!
How to reduce property maintenance costs?
Small unaddressed concerns can compound and lead to larger, more expensive issues down the road. Here are some smart ways you can save money while maintaining your property:
How can landlords benefit by partnering with Adjoin?
The Adjoin tenancy allows you to significantly reduce maintenance costs. How? By simply giving tenants skin in the game.
When tenants are looking to purchase homes and leverage our rent-to-buy offer, they test-run their probable future home. For landlords, our tenants are probable future buyers. This means that they have every financial incentive to take care of your property while renting it as if it’s already their own.
It has been proven (from similar models in the U.S.) that such tenants (future buyers) can drive maintenance costs down by 50%. Simply put, you can benefit from the network of trusted tenants of Adjoin, increase your earnings and lower your costs.
Want more details? Contact us at email@example.com We will get back to you within 24 hours.
If you are a landlord in the UK, you probably would have had this question in your mind: How to maximise profits on rental property? To make the most of your rental property, you should have the right strategy that generates more money, and increase the value of your property.
It is a misconception among landlords that increasing the rent is perhaps the only way to be profitable. There are several things you can do to get the most out of your rental property. This article will show you how to make more money as a landlord while keeping your tenants happy. So read ahead!
3 Actionable Tips to Maximise Profits On Your Rental Property
1. Reduce the Vacancy Period At Your Rental
No surprises here. When your rental property is vacant, it will not generate money. As a landlord, your main goal should be to retain tenants and reduce the vacancy period. Doing this will not only increase profits but also save time as finding tenants can be time-consuming. Not to mention the fees you need to pay if employing a real estate agent.
Here are a few things you can do to reduce vacancy periods and maximise profits on your rental property.
2. Be wary of property maintenance and property management
Property maintenance is the biggest nightmare for landlords. Even though it is non-negotiable, regular property maintenance costs can easily go out of control. Some renters may overestimate repair work, and you should not agree to each and every maintenance request before checking it yourself.
Hiring a maintenance crew or company can be expensive, depending on how they bill their service. Sometimes you won’t need any repair work for a particular month but could end up paying a retainer.
The best way to combat this is to do your own maintenance as much as possible. If there are minor repairs such as replacing, bulbs, doing it yourself could save you hundreds of pounds. It would be even more beneficial if you live near your rental, as it cuts down on transportation costs.
Do your own inspections and ensure everything works fine. Tenants do not always report damages – especially if you haven’t built a rapport with them. Indeed, about 46% of landlords say so! Damages that are left untreated now might escalate in the near future and incur higher costs for replacements and fixes.
This applies to managing your rental property too. It is easy to hire property managers, but not everyone can afford the bill. Yes, having your property managed by professionals gives you a sense of peace and is convenient. But it’s not so fun when they charge a significant percentage of your monthly rental.
However, this does not apply to all landlords, as it depends on expertise levels and availability of time. But whenever possible, getting your own hands a little dirty can significantly increase the net profit down the road and maximise profits on rental properties.
In case you have to hire professionals for maintenance, plan ahead and establish a trusted network of contractors and craftsmen immediately. We say this because accessing contractors is the second biggest challenge when it comes to property maintenance.
3. Give your rental property an upgrade
The more facilities your renters enjoy, the longer they are likely to stay. It will even increase the chance of getting a tenant who is willing to pay more.
An upgrade does require further investment, but it is a one-time cost. And since you can increase the rent after an upgrade, the returns will be more than what you get at present.
Moreover, a property upgrade will increase its current value. And that’s something any property owner would like.
Here are some ways to upgrade your rental property and be more welcoming.
How Can Adjoin Help Landlords Maximise Profits On Their Rental Property
Most of the landlords we have spoken to say that finding a quality tenant is the biggest problem they have. Adjoin’s rent-to-own scheme comes in handy as the tenants we find have equal stakes in your property.
Our tenants rent your property with the goal of buying it from you after a test-drive period. Hence, maintaining the property is in their best interest, due to skin in the game.
Simply put, we find tenants who will pay higher rent and cost you less. As a landlord partnering with Adjoin, you get the best of both worlds.
Interested to know more? Email us at firstname.lastname@example.org or drop your information here and we will contact you ASAP.