Best practices for tackling retail property maintenance
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Efficient property management and strategic maintenance are often top contributors to high investment returns when investing in retail property. While some might view these steps as avoidable hassles, below are practices and tactics that can help commercial property investors turn property maintenance into rewarding opportunities.
Preparing and reserving
Unexpected repairs can catch unprepared real estate investors off-guard and put their budgets at risk. Even worse, when working capital isn't readily available it can lead to deferred maintenance and poor repair work.
Instead think ahead and set aside money each quarter in reserve accounts for items that will eventually require maintenance, as well as unexpected repairs €“ such as Mother Nature's contributions. This is a sure way to maximize investment efficiencies, while minimizing large capital expenditures.
Embrace repairs and do them well
Deferred maintenance depletes the value and the performance of a property, which can be financially detrimental. Completing repairs and improvements effectively and properly are attractive features for superior tenants. This can help attract and maintain tenants, while reducing unnecessary repairs and costs down the line due to poor repairs.
Leave it to the pros
The downside of the DIY approach, for the few brave souls daring to manage their own properties, is that there are always disadvantages when it comes to completing routine maintenance and repairs.
Investors working with professional management companies can often avoid many of these disadvantages by tapping into the relationships and the volume discounts their property managers command, resulting in lower repair costs.
Building a brand
Every repair request is an opportunity for a landlord to shine, or to turn off current and future tenants and their consumer traffic.
When it comes to exterior renovations and improvements, investors can either let construction chaos lead to confusion and frustration or use it as a way to increase bottom line returns.
Engage the public, tenants and media to highlight the great work being done and raise visibility and interest.