October 09, 2020 | by Adarsh Cherian , Community Manager, Dubai
One of the paradoxes of today’s real-estate world is that one of the few things that we can rely on to remain constant is the need for change. Yet today even that need for change is itself changing. As technology advances, and what used to be enormous distances are shrunk to insignificance, as national borders diminish in importance, as we are forced to battle in increasingly competitive global marketplaces, the pressures to strive for constant improvement and change in what we do and the way that we do it are increasing in intensity.
Dubai Real estate investors are facing increased price pressures due to increasingly sophisticated competition to lease their property. On the other hand, as the property gets older, maintenance expenses rises resulting, property investors to cut compromise on the maintenance. This is the greatest mistake an investor can make!
When you own a freehold property, you will eventually have to deal with maintenance issues. While property management or the Owners Association are responsible for facilitating maintenance requests, that is typically where their responsibility ends. As a property owner, it’s your sole responsibility in engaging a licensed contractor handle routine rental home upkeep, emergency repairs, and significant damage resulting from accidents or an irresponsible tenant. These may include Lawn and yard maintenance, Plumbing, Air Conditioning, Painting, electrical work, Locksmith issues etc.
A responsible property maintenance company will have a crew on hand 24/7 should your tenants encounter any issues— big or small. In addition to maintenance staff, a property maintenance service provider should have the capacity to handle the difficult problems beyond the scope of expertise of most general maintenance. It is the responsibility of the property maintenance company to schedule the repairs and be responsible for resolving the issue and take care of any concerns that may arise during the course of work.
Addition to maintenance cover, regular property inspections are vital to the health of your investment. There are four main types that landlords commonly perform. Below we take a look at each one and why it is crucial.
- Move-in Inspection– A detailed walk-through inspection takes place as the tenant takes occupancy. The goal here is to thoroughly document the unit condition and identify any concerns for the tenant. These inspections allow easy comparison to the move out examination to determine possible damages above normal wear and tear.
- Routine Maintenance Inspection– Semi-annual or quarterly property inspections serve many purposes that are beneficial to landlords. By periodically checking in, you can proactively address maintenance concerns, perform preventative repairs, or uncover any lease violations before they damage your property. Whenever intending to inspect your property in person, you must give proper notice to the tenants, typically 24 to 48 hours. The lease agreement should reserve the right to enter or inspect the home with adequate notice.
- Periodic Drive-by Inspection– The upkeep of the outside of your property can shed light on the condition that might be inside. Therefore, a periodic drive-by of the unit is necessary to spot potential issues or even an unauthorized pet.
- Move-out Inspection– The move out inspection determines any damages the tenant may have caused throughout their occupancy. When compared to the move-in inspection, landlords can evaluate what, if any, of the security deposit can be held to address the repairs beyond normal wear and tear. This inspection gives you an idea of the required repairs to complete before renting to new occupants.
Whether you are new to the rental property business or you have multiple properties, it is crucial to understand the benefits of hiring a reputable property maintenance company. Therefore, take time to make sure that your property maintenance company are in agreement about the tasks outlined.
Quite simply,
Return on Assets= Revenue/Asset Value
Volume = Maximum Capacity x Overall Equipment Effectiveness
More effective Maintenance works on both sides of the Return on Asset equation. Improved maintenance helps to increase revenues by increasing the asset value. It also helps to improve ROA by reducing the need for expensive capital upgrades to increase output. It directly and indirectly releases scarce capital funds to fund growth.
This vital strategic importance of Maintenance in the real estate industries is increasingly being realized at senior levels. This presents both great opportunities and great challenges for Maintenance professionals. Pressure is increasing for change in the way most investors go about their maintenance service provider.
