If you are an investment property owner you probably budget for emergency issues with the property. That makes sense. What also makes sense is expanding that budget not just for quick fixes, but for property updates as well. Why?
Upkeep and maintenance
One reason is that doing nothing but fixing problems doesn’t improve the value of your property. In fact, only fixing problems may decrease the value. Your tenants, even the best of them, cause wear and tear to your property. It’s inevitable. Carpets and flooring get wear patterns, appliances wear out. If you leave the property in the same condition without updating, the investment won’t be profitable. Regular upkeep and maintenance is very important.
Updating the property is very important as well
Improving kitchens and baths, beyond fixing wear and tear, will improve the value of the property. Repainting will keep the property looking fresh. Replacing flooring from older less valuable or durable to newer, more up to date flooring will improve the value.
Doing updates takes money
Do you have thousands of dollars handy at the drop of a hat? Most don’t. Do you want to take a loan out that will cost you in interest? Probably not. Budgeting in funds to pay for improvements is smart. You can do them gradually but also get them done.
So be smart, budget for updates.