Essentials of Seasonal Maintenance
Enhancing Property Value Through Maintenance and Winterization By Aimee Lindsay As a real estate investor or property owner, it’s critical not to underestimate the importance of property maintenance in minimizing your investment costs and maximizing the long-term value of your assets. Regular maintenance is necessary to make the most of your investment, whether your goal is to sell quickly or earn the most income for your rental. A proactive approach may help you avoid costly damage that could harm your profit potential. It is especially crucial as we head into the fall and winter, as minor damage can quickly escalate into a serious issue when weather conditions harshen. The current market dynamics have made it more important than ever for investors to elevate their standards for property maintenance. High home prices and mortgage rates have slowed the purchase market down significantly. The single-family rental (SFR)market has also cooled, with rental growth slowing progressively over the last year, according to CoreLogic’s Single-Family Rent Index. In the meantime, owners are competing to have the best property in the neighborhood in terms of value and also appearance. How a property presents itself tells buyers and tenants a great deal about the amount of care the owner has put into the property. Importantly, the appearance of a home can make a significant difference in its sale price and rental potential. Homes that are well-maintained, aesthetically pleasing, and show an attention to detail generally have a higher perceived value. On the other hand, homes that appear shabby, neglected, or in need of repairs may have a lower perceived value and could potentially sell or rent for less. According to a joint study by the University of Alabama and the University of Texas published in the Journal of Real Estate Finance and Economics, attractive, well-maintained homes tend to sell for an average of 7% more than similar houses with an uninviting exterior. That premium rises as high as 14% in slower real estate markets with greater housing inventory. Several factors contribute to the impact of a home’s appearance on its price: » First Impressions // The exterior of a home is the first thing potential buyers see. A well-maintained exterior, including a manicured lawn, clean façade, and attractive landscaping, can create a positive first impression and increase the perceived value of the property. » Interior Condition // The interior of a home also plays a crucial role. Homes that are clean, organized, and well-maintained can leave a positive impression on potential buyers. Up-to-date fixtures, fresh paint, and modern finishes can enhance the perceived value. » Perceived Maintenance Costs // Buyers often consider the potential maintenance costs when evaluating a home. A home that appears to be in good condition is likely to be perceived as requiring fewer immediate repairs, which can positively influence its value. » Comparative Market Analysis (CMA) // Real estate agents and appraisers use comparative market analysis tools to estimate a home’s value based on recent sales of similar properties. If homes in the same neighborhood with similar features and square footage have sold for higher prices due to their better appearance, this can impact the perceived value of your property as well. What You Should Do Whether your property is vacant or occupied, there are several steps to take before colder weather arrives to keep your asset ready to sell or rent for top dollar, or to keep your current tenants safe and satisfied. Exterior Fall Spruce-Up While the changing leaves can make autumn a beautiful time of year, those leaves also create a mess for property owners. Leaf debris can clog gutters, smother lawns, and allow fungus to fester. If left untouched, a gutter full of wet debris can freeze in winter and create an ice dam that may damage the roof deck. Tree limbs and shrubs that have grown close to the house over the summer also pose a risk, as they can cause damage when weighed down with snow and ice in the winter. That’s why it’s important to perform a fall spruce-up to keep the exterior of the property tidy: » Pick up all debris in the yard prior to mowing. Cut the lawn at 2 inches; grass clippings, leaves, limbs and debris must be removed from the property. » Leaves, pine needles and twigs should be removed and disposed of offsite in an appropriate manner. » Flowerbeds, driveways and sidewalks should be edged. » Remove all weeds and saplings from flowerbeds and around shrubs and fence lines. » Weed whack around house, fences, trees, and remove dead vines from fence, latticework, etc. » Remove all fallen limbs and excessive leaves from the roof. » Clean out gutters and remove all holiday lights. If there is a gutter guard, replace it after cleaning out gutters. » Prune branches from trees and shrubs that encroach on entryways, walkways, or sidewalks and trim at least four to six inches from the house or roof. Winter Maintenance Fresh snow and ice may appear to be a beautiful winter wonderland, but they can be a hazard for properties that have not been properly maintained. Winter weather conditions can create a high risk of damage to your roof, interior, and plumbing. Freezing temperatures outside and dry heated air inside can create a variety of issues from leaky roofs to frozen pipes. A small problem can suddenly become much bigger with heavy rain or a snowstorm. The following maintenance tasks should be completed before cold weather sets in: » Perform routine service on HVAC system and replace filter. » Flush out water heater to remove mineral deposits. » Caulk gaps around windows and add weather-stripping around door frames to create a seal against the cold air. » Clean out chimneys (if applicable) and fit with a cap to keep out animals. » Detach garden hoses and close the water valve to outdoor hose taps. Drain water from all exterior lines. » Evaluate insulation and ventilation in attic to insure proper circulation. » Inspect
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