Return on investment (ROI) is important for property managers as well as homeowners. Not only does ROI help you understand how much your property is worth, but it also shows how much your property could be worth in the future. Oftentimes, if you want to maximize your property’s ROI you need to invest in professional maintenance services. Keep reading to learn how reliable property maintenance helps prevent costly repairs, ensures tenant satisfaction, and maintains the overall value of your assets.
How to Calculate Your ROI
Return on investment is a simple way to evaluate how well your investments are performing relative to their costs. For property managers and homeowners, this includes money spent on maintenance and upkeep versus the income and value retention those services provide. The formula for calculating ROI is:
ROI = (Net Profit / Investment Cost) x 100
For property, your net profit would include rent, property appreciation, and the money saved through preventative maintenance. Your investment cost includes maintenance expenses, repair costs, and other operating expenses. According to the S&P 500® Real Estate Report, the average ROI for residential properties is 10.64%. Each ROI will be different depending on the property, how much maintenance it needs and how expensive that is. Regardless of the state of your residential property, investing in a reliable property maintenance company will help you see significant financial returns.
Preventative Maintenance is Key
Preventative maintenance is the practice of regularly servicing and inspecting property systems like HVAC, plumbing, and landscaping to avoid potential breakdowns. These services also play a large role in maximizing your ROI:
Minimizes Costly Repairs
Waiting until your equipment or buildings start breaking can lead to expensive repairs and in some cases, complete replacements. For example, a neglected HVAC system can break down unexpectedly in the middle of winter, leading to expensive emergency repair costs that could have been avoided with regular maintenance.
HVAC systems, plumbing, electrical setups, and even landscaping can all benefit from routine property maintenance. This plan helps you catch small problems before they become bigger, more expensive issues. Afterall, replacing a part is far cheaper than replacing an entire piece of equipment.
Extends the Lifespan of Equipment
Another vital reason to invest in preventative maintenance is to extend the lifespan of key equipment and property systems. HVAC units, water heaters, and landscaping equipment all have limited lifespans. However, when properly maintained, they last significantly longer.
Extending equipment life ensures you get the most value from your initial investment. You won’t have to worry about expensive replacements prematurely draining your resources. In some cases, well-maintained equipment can last twice as long as poorly maintained counterparts.
Reduces Downtime
Regular preventative maintenance reduces the likelihood of system failures, which means you or your tenants won’t experience unexpected downtime. Issues like a broken air conditioner during a heatwave or malfunctioning water heater in the winter aren’t just annoying but can be very dangerous. Don’t risk these serious problems disrupting you and your tenant’s lives, especially when routine property maintenance could have prevented them.
Improves Property Value
Preventative maintenance directly impacts property value. Well-maintained properties not only retain their value, but they can also increase it over time. For property managers and homeowners looking to sell their buildings in the future, regular maintenance can lead to a higher selling price.
A property with updated systems, well-kept landscaping, and a history of preventative maintenance is much more attractive to potential buyers or renters. Lawn care, painting, and fixing minor damages can also greatly improve your property’s curb appeal, which is essential for attracting new tenants or buyers. And when the time comes to rent or sell you can charge a higher price due to the amount of work you put into the property, helping you maximize your ROI.
Benefits of Using a Property Maintenance Company
To get the best results and ensure everything on your property is running as it should, preventative maintenance should be done by experienced professionals. A property maintenance company knows how to handle complex systems like HVAC, plumbing, and electrical, ensuring everything is maintained to industry standards. Technicians can identify issues early on, prevent costly repairs, and extend equipment lifespan, all of which greatly benefits your ROI. Plus, by outsourcing these tasks, you save time and get regular, consistent upkeep without the stress of managing it yourself.
Maximize Your ROI with Preventative Maintenance
Not only does property maintenance improve the health of your equipment and reduce downtime, it also ensures that your property will continue to grow in value. Every dollar spent on maintenance is an investment in the future of your property, and that investment pays off in both ROI and peace of mind.
Implementing a strong preventative maintenance plan takes a great deal of time and work, so why not leave it to the professionals? At Swyft Property Care we specialize in HVAC services, general maintenance, and lawn care, offering you a comprehensive approach to preventative care. Call us for an estimate today and get started on your property’s upkeep to maximize your ROI.
