Deferred Maintenance is an Investment Return Killer
One of the best ways to ensure that you are receiving the highest rent in order to maximize your investment return is to tackle deferred maintenance. Deferred maintenance is an investment return killer! Besides building features (square footage, clear height, truck maneuvering, etc.), the next most crucial item in receiving a higher rent is to keep your property in top notch condition. This means staying on top of deferred maintenance before it becomes an issue! In this blog post, we will discuss the best ways to limit deferred maintenance in order to maximize your investment return. The three best solutions to avoiding deferred maintenance on your industrial property are:
Creating a check list
Monthly drive by
Hire a property manager
The easiest and best way to avoid deferred maintenance is to maintain monthly, quarterly, and annually check lists. Organization is key here. A simple checklist can make all the difference in the world. Your checklist should have the following items (if applicable):
HVAC servicing (quarterly and annually)
Fire sprinkler inspection
Roof maintenance and repairs (including skylights)
Parking lot maintenance and repairs
Exterior and interior paint
Dock repairs and maintenance
Ground level and dock high door maintenance
Having the above checklist will allow you to stay on top of deferred maintenance before it even starts!
Monthly Drive By
Driving by your property is one of the best ways to spot maintenance or repair problems in their early stages. A majority of tenants do not report or notice certain items that need to be repaired. Noticing problems in the early stages generally saves commercial property owners money and frustration because they are tackling the problem when it is small. Driving by your property once a month to inspect the condition of the property is ideal. When you drive by, you should be looking at the major components (docks, landscape, parking lot, roof if possible, etc.).
Hire a Property Manager
Don’t have the time or don’t want the added stress of managing your investment property? I would suggest hiring a property manager. Property managers will save you money, time, and can add tremendous value to your property/portfolio. A great property manager can seriously make all the difference in the world. Property managers will look to minimize your expenses, maximize your rental income, and keep your property in Class A condition.
If you are need of a property manager, please contact me or Romano Litchfield & Associates . We would appreciate the opportunity to be of service to you.
Have an industrial real estate question? I would love to answer it. Please feel free to comment or message me with all of your questions.
Industrial Real Estate Broker
Inco Commercial Brokerage
La Mirada, CA