WHAT PENNY PINCHERS DO
DON'T MAINTAIN THEIR PROPERTY PROPERLY
Not spending money on regular and necessary maintenance will result in significantly more expense and spending down the road guaranteed! In most cases, a small inexpensive repair that is ignored will turn into a much larger problem which means more money out of your pocket. Think short-term pain, long-term gain.
BUY CHEAP APPLIANCES
Have you called a service technician lately? Both service calls and parts cost a small fortune! Tenants put appliances to good use, so you want them to last. Do yourself a favour: increase your budget and buy quality appliances with a good warranty which will save you spending money on repairs and parts.
DON'T IMPROVE THEIR UNITS
Tired-looking units that are not up-to-date get passed by all the time and garner lower rents. You are losing potential tenants and cash if your unit does not show well.
WHAT SPENDERS DO
MAINTAIN THEIR PROPERTY
Being proactive in maintaining your property is a win-win. Addressing potential issues early on and repairing them before they become larger headaches will save you time and money.
Improving your units and exterior to their maximum potential has many upsides. It will increase the number of potential tenant applications. You will have the ability to raise the rents. Raising rents equals higher cash flow which means higher NOI and higher property value.
You cannot over-improve a rental property. You should treat your rental property like your own home. Simply put: spending the money to maintain it and keep the units up to date is a must if you want a high return on investment when you decide to sell the property down the road. High quality rental properties have high cash flow, high value and attract more buyers looking for a turn key investment property when you are ready to sell.