Real Estate Investor Magazine South Africa November 2015

Building up a reserve fund As a property ages, the maintenance and repair requirements increase. Recognising this risk, buy-to-let business owners build up a reserve fund for unexpected repairs or major maintenance beyond the regular, ongoing maintenance budgeted for in their cash flow projections. Professional asset management in a buy-to-let business will not only manage the cost of regular, ongoing maintenance and reduce the risk of unexpected and significant maintenance and repair costs, but will also ensure that the property asset appreciates in value over time. Disciplined maintenance schedules Asset management should incorporate maintenance schedules, including regular inspections and maintaining good relations with tenants, to ensure buy-to-let business owners are always informed of maintenance and repair requirements or potential problems. These can be attended to swiftly, as both ongoing, regular maintenance, as well as unexpected repairs, are budgeted for. This ensures minimal disruption to the tenants and prevents delays which could escalate the costs involved. Quality contractors Buy-to-let business owners should appoint only reputable, reliable contractors who will attend to the maintenance and repairs professionally, swiftly and cost-effectively and will provide the necessary guarantees and warranties. Accurate recordkeeping Keep accurate records of all maintenance and repair issues, and file quotes, invoices, guarantees and warranties in an easily accessible manner. This not only prevents disputes with tenants, but also ensures that the costs are factored into tax calculations. Professional asset management in a buy-to-let business will not only manage the cost of regular, ongoing maintenance and reduce the risk of unexpected and significant maintenance and repair costs, but will also ensure that the property asset appreciates in value over time. RESOURCES P3 Investment Group www.hope.co.za www.reimag.co.za NOVEMBER 2015 SA Real Estate Investor 29

Real Estate Investor Magazine South Africa November 2015 | Page 31