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the investment cycle. The excitement in property investment commonly ends after the purchase of property at a favourably price.
After that the new owner normally adopts an indifferent attitude when it comes to value addition.
The liquidity challenges in the market are a contributory factor to the number of properties that are facing rampant dilapidation at the hands of landlords and tenants.
However, it is not fair to blame such issues solely on external forces when some Landlords, tenants and even estate agents are responsible for many properties losing value because of a general lack of maintenance.
The most affected properties are those owned by people residing outside our borders. This is because there is no interface between the landlord and tenant or the estate agent and landlord. The tenant in most cases is left to their own devices and is somehow expected to adopt an ownership disposition in the absence of credible vetting or suitable control measures.
It is disheartening in most instances the shock of the landlords when eventually they witness the state of the property after years or months of absence and the insurmountable amounts required for renovating the property back to its initial state. It is tantamount to buying back lost value.
Most of these factors that give rise to heavy bills or massive renovations started as small problems that were left unattended.
The most common being the non-clearing of debris from trees or otherwise in gutters which results in clogging during rainy seasons. This eventually leads to the rotting of the gutters or them falling off and in some instances affecting the tile layout.
Roof leakages are also a cause for concern as they affect ceilings resulting in water marks stains. These stains on ceilings or walls are normally a cause for concern among potential buyers when its time to sell the property.
One is also required to examine the caulking on showers and tubs, if loose it may result in leakages, which affect surrounding walls and tiles. This causes that uncomfortable moisture that is always present in such bathrooms.
A well-treed house is always a beauty and an easier property to sell, however, when the trees are not trimmed and close to the superstructure on the land, the results may be catastrophic for the investor. There is a real risk of cumulative debris affecting roofing and depending on the type of tree; the roots may cause structural damage to the superstructure itself.
Other common factors like mowing the lawn, attending to minor driveway defects and cleaning the walls though very cheap, affect exponentially the value of the investment on sell or rental. In our illiquid market, property owners are required to do more to attract high monetary value from buyers or tenants
It is critical for the landlord and/or property manager to balance the cost of routine and preventative maintenance with their benefits and effect on property value.
A meticulous manager will have an inspection list that includes property landscape, drainage and electrical condition, roof, wood and other particular building features.
To ensure that there is no confusion on duties of maintenance, lease agreements between the landlord and tenant must be specific as to who is responsible for what.
This varies significantly whether the lease itself is residential or commercial one. Costs of maintenance afforded by negligence must be clearly separated to those necessitated by wear and tear. The lease must be unequivocal in its delegation of responsibilities.
It is important for the landlord to appreciate that the tenant will only care for the property up to the level the landlord cares for the property. Where the standard set by the landlord is low, it will be foolish for the landlord to expect the tenant to adopt a high standard of care.
Vengai Madzima is a property investment consultant and analyst. He can be contacted on 0772 468093 or [email protected]
Online Reporter