Just a thought I've been having. This happens quite a lot with commercial properties and strata complexes but not much with residential properties, why? How come most dont have a scheduled maintenance plan? Certain things need doing regularly - every year or every 2-5 years depending on what it is. Stuff for example gutters clearing, air cond servicing, external paint touchups , and probably others too? Obviously what each property requires is a little bit different and different landlords have different budgets. But i bet volume discount could be negotiated to go do X number of houses versus just 1 as an adhoc? Do other investors or property managers ever think about this?
I am onto it - but haven't set up the calendar yet! We have come to the conclusion regular (even 2 yearly) servicing of our air-cons and heating units, gutters are worthwhile investments, The Y-man
We have one. My PM (in Germany) did it when we bought 6mth ago. Its a terrific idea. It seemed highly detailed but after reflection and translation it made sense. As our property is a 3 x short stay in constant use its important it stays in condition. They also have a checklist for each handover. And a feedback form from each occupant. If they note a comment or a defect they seem to act on it immediately if its reasonable. Its mostly little things. If its not reasonable they let us know and advise us on options. They identified the roof is sufficiently engineered to accommodate up to 2.5 metres of static snow. An engineer reported on it (extra cost E120) In recent snow storms the army cleared roofs in town to avoid collapse but it was nice to know it was well engineered before they arrived. Their report covers everything. They identified some likely issues to plan over the next three years. We did all the immediate stuff and all the first years things immediately knowing winter was coming. Any defects in winter are fixed fast unless they are outside where it may not be easy. Otherwise we will hold until summer and year 2 and some year 3 will be done. The PM manages the whole thing and ensured each apt was vacant for the required days. Tradesman went from one to next etc with minimal impact. They even suggested we buy games, different card games and share mountain bikes for free use etc. They are kept in a small external courtyard storeroom with outdoor BBQ and the code changes at same time as each door lock code. Some issues they identified in report: - Flooring wear eg carpet, vinyl, tiles (chips etc) and grout condition. - Condition of surfaces, fixtures etc - Furniture. We switched a fabric sofa and a vinyl sofa both for leather for better wear and cleaning. - Alarms and major electricals. We added a powered detector for carbon monoxide in each property. The former battery ones are considered unreliable. - Hot water service and heating - Corrosion and damp - Mould and antibacterial issues (eg grout, steam etc) - Appliances (they suggested some we had were not good quality and perceived by occupants as cheap) eg Chinese TVs. They suggested Aldi own brand (Germans love German !!) and went there to buy them when a special buys deal was on a few weeks later. They arranged wall install to avoid hazards from toppling on a child. Ya gotta give it the germans they are detailed. - Bedding, linen and window coverings. They didnt like ours. Recommended a commercial hotel linen service at a slight annual cost increase but it removes all washing and pressing like former owner. - Paint and render. (One apt was poor so we had it fully repainted and varnish etc) - Timbers (We had a small section of roof shingle rot) - Contents for short stay use (eg minor matters like small appliances, soap dispensers etc and kitchen contents and spares. After the snow-in at new year they suggested we add what I have called a "doomsday food pantry" of canned staples and long life food packs from a camping supplies provider and toiletries for each apt sufficient for a family for two weeks. Its a lot of stuff but lasts a few years (3-4). It is locked away but can be opened on request and a number is provided for a phone request to the agent. We were lucky and our new tenants couldnt get in for two weeks (9 groups of them !) but the ones leaving were all stuck in town and were happy to pay to stay to avoid going to the red cross shelter in a local school. Apparently they all had travel insurance as diligent german tourists do. The agent has added a note to all future winter bookings and the inhouse handbook to caution about this issue and assure people there is a plan B. And tourists at that time can just ski in town !! They all loved it from feedback I would share it but its in german and several pages.
Too many investors are prepared to take the 2.5% depreciation (or more) each year sad a tax credit but baulk at spending $2 to fix a loose screw. By the time they get around to fix it, it has escalated to replacement.
One of prop managers in QLD does this. He includes 2 hours of free (unlicensed repairs / maintenance) per month in my fixed deal. It is the handyman through his separate building company that does the routine inspections. If anything small needs attention while he is there it just get done and I don't if hear about it. The other week a bee hive created under the house and they just sorted it without costing me anymore. Its not exactly what you are referring to, but it is pro-active small repairs / works as we go along rather than always being reactive. I wish more of my PMs followed a similar model rather than hitting me with bills to send some-one out separately for small trivial matters.
It's a mindset, and more a question of psychology. For example,if owners are paying strata and BC fees then they expect to see ongoing maintenance. Whereas, in a PPoR or rental, people feel as if they can "hold off" and wait for their own properties, can judge and keep an eye on it. It's flawed thinking to some degree. More-so because when you own a PPoR or IP, the list of things on a "to do" list keeps growing.
