The real cost of looking after properties long term is so overlooked. It's a crucial yet often overlooked aspect of long-term property investment and it frustrates me to see investors who fail to properly consider the inevitable need for property refurbishment over time. Some base their numbers on the initial purchase and some refurbishment but no follow up costs for the medium to long term.

KEY TAKEAWAYS
Consider long-term maintenance and refurbishment costs: Investors should factor in the inevitable need for property refurbishment over time, including major expenses like boiler replacements and roof repairs.
Mitigate costs through dilapidations clauses: Landlords can protect themselves by including strong dilapidations clauses in leases, ensuring tenants are responsible for maintaining the property's condition.
Take deposits and set expectations: Collecting deposits from tenants and setting clear expectations for property upkeep can help cover wear and tear costs when tenants vacate the space.
Establish a sink fund for maintenance: Setting aside a portion of rental income for a sink fund can help cover big-ticket maintenance items like full property refurbishments in the future.
Stay proactive with maintenance: Regularly maintaining the property, addressing issues like water damage promptly, and keeping communal areas in good condition can help prolong the need for major refurbishments and preserve rental income.

BEST MOMENTS

"It just frustrates me a little bit that people don't really think properly about long-term investment."

"There's some really cast iron dilapidation clauses."

"At some point you're going to need a chunk of change for a full refurb."

JOIN THE NETWORK

If you want to learn more about investing in Commercial Property why not consider joining the CPI Network? A community of active investors who collaborate, share experiences and empower each other in their Commercial Property endeavours.

Useful Links:

CPI Website - https://commercialpropertyinvestor.co.uk/
Our Sponsors -  https://commercialpropertyinvestor.co.uk/podcast-sponsors/

The real cost of looking after properties long term is so overlooked. It's a crucial yet often overlooked aspect of long-term property investment and it frustrates me to see investors who fail to properly consider the inevitable need for property refurbishment over time. Some base their numbers on the initial purchase and some refurbishment but no follow up costs for the medium to long term.
KEY TAKEAWAYS
<ul>
<li>Consider long-term maintenance and refurbishment costs: Investors should factor in the inevitable need for property refurbishment over time, including major expenses like boiler replacements and roof repairs.</li>
<li>Mitigate costs through dilapidations clauses: Landlords can protect themselves by including strong dilapidations clauses in leases, ensuring tenants are responsible for maintaining the property's condition.</li>
<li>Take deposits and set expectations: Collecting deposits from tenants and setting clear expectations for property upkeep can help cover wear and tear costs when tenants vacate the space.</li>
<li>Establish a sink fund for maintenance: Setting aside a portion of rental income for a sink fund can help cover big-ticket maintenance items like full property refurbishments in the future.</li>
<li>Stay proactive with maintenance: Regularly maintaining the property, addressing issues like water damage promptly, and keeping communal areas in good condition can help prolong the need for major refurbishments and preserve rental income.</li>
</ul>
BEST MOMENTS
"It just frustrates me a little bit that people don't really think properly about long-term investment."
"There's some really cast iron dilapidation clauses."
"At some point you're going to need a chunk of change for a full refurb."
JOIN THE NETWORK
If you want to learn more about investing in Commercial Property why not consider joining the CPI Network? A community of active investors who collaborate, share experiences and empower each other in their Commercial Property endeavours.
Useful Links:
CPI Website - <a href="https://commercialpropertyinvestor.co.uk/" data-saferedirecturl="https://www.google.com/url?q=https://commercialpropertyinvestor.co.uk/&amp;source=gmail&amp;ust=1709974568108000&amp;usg=AOvVaw1A5K4sVA-Ox1LYPKXSlFHi">https://commercialpropertyinvestor.co.uk/</a> Our Sponsors -  <a href="https://commercialpropertyinvestor.co.uk/podcast-sponsors/" data-saferedirecturl="https://www.google.com/url?q=https://commercialpropertyinvestor.co.uk/podcast-sponsors/&amp;source=gmail&amp;ust=1709974568108000&amp;usg=AOvVaw2wCPFETiw0q_498BwKclJb">https://commercialpropertyinvestor.co.uk/podcast-sponsors/</a>

The Commercial Property Investor Podcast is for aspiring property investors. You might be tired of Residential investing and want to move into the exciting world of commercial real estate investment. You just need the knowledge and confidence to get started and an abundance mindset to grow your portfolio. Host Jerry Alexander & his guests share the key steps to Commercial Property success. You will be kept up-to-date through weekly interviews & conversations relating to many Commercial Property strategies including:

Flexspace, Coworking, Aparthotel, CMO & Multilet property, Commercial to Residential conversion, Retail, Office space, industrial and Self storage. 

The Commercial Property Investor Podcast is for aspiring property investors. You might be tired of Residential investing and want to move into the exciting world of commercial real estate investment. You just need the knowledge and confidence to get started and an abundance mindset to grow your portfolio. Host Jerry Alexander &amp; his guests share the key steps to Commercial Property success. You will be kept up-to-date through weekly interviews &amp; conversations relating to many Commercial Property strategies including:
Flexspace, Coworking, Aparthotel, CMO &amp; Multilet property, Commercial to Residential conversion, Retail, Office space, industrial and Self storage.

Weekly inspiration from the world of Commercial Property Investing

Commercial Property Investor Podcast

The Commercial Property Investor Podcast hosted by Jerry Alexander. No nonsense discussion and insight into entering the exciting world of commercial real estate investment.





Best Commercial Property podcast, Investment, Investing,, Real Estate, Strategies, CMO, Lease, Contracts, Licence Agreement, Tenants, Cash flow, Vacancy rates, Agents, Valuations, ROI, residential, assets, Flexspace, office space, How to get started

The Commercial Property Investor Podcast hosted by Jerry Alexander. No nonsense discussion and insight into entering the exciting world of commercial real estate investment.
 
 
Best Commercial Property podcast, Investment, Investing,, Real Estate, Strategies, CMO, Lease, Contracts, Licence Agreement, Tenants, Cash flow, Vacancy rates, Agents, Valuations, ROI, residential, assets, Flexspace, office space, How to get started

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