While keeping yields high on your rental property is generally the objective, as a landlord it’s important to keep up with maintenance as deferring it can end up costing you a lot more. The added benefit is that well maintained properties are less likely to suffer weather and fire related damage.
A survey suggests that Kiwi property owners are deferring maintenance on their homes – and it’s likely to cost us more in the long run.
In a recent article in Build magazine, Building Research Association of New Zealand (BRANZ) economist Ian Page says that for a stand-alone dwelling, an average annual maintenance expenditure of between 0.5 per cent to 2 per cent of the value of the home is about right. For a Kiwi home worth around $100,000 (rateable value without the land), that’s around $500 to $2000 each year, just to keep your property in good shape.
But the survey found that most home-owners are spending less than this, meaning the state of their homes is slowly deteriorating. As time goes on, the cost to put things right will only increase.
Click here to read the full article.