How Maintenance Increases Property Value: Guide for Property Managers
If you are a property manager in the San Diego area, one of your key priorities is increasing the value of properties under your care. Not only does this attract more qualified renters willing to pay higher rents, but it also boosts profits and returns for your clients when they eventually go to sell.
We outline actionable tips to help property managers increase property value through maintenance best practices while avoiding over-improvements.
With median home prices more than $900,000 in San Diego, property values are already at a premium. However, strategic investments in ongoing maintenance and purposeful upgrades can help boost property value even further.
Why Preventative Maintenance Is Key
As the adage goes: “An ounce of prevention is worth a pound of cure.” This is especially true for rental property upkeep and value-boosting for property managers. It’s significantly more cost-effective to proactively tackle minor maintenance issues before they spiral into major repairs or problems.
- Start by educating tenants about common trouble areas like AC drain line clogs, trash disposal issues, dryer vent buildup, changing out HVAC air filters, and more.
- Check city and utility websites to be aware of potential rebate programs when replacing appliances or major systems.
- Follow maintenance checklists for seasonal assessments like gutter cleaning, tree trimming, and roof inspections before wet weather.
Prioritize Preventative Improvements
In San Diego, there are many older properties or those in high-use condition. Homeowners and PMs should consider investing in preventative improvements to avoid the hassle and costs of heavier future repairs. Some upgrades that can save bigger headaches down the road include:
- Installing tankless water heaters: More energy-efficient and longer-lasting.
- Adding overflow drainage: Helps prevent flooding and associated damage.
- Sealing decks, fences, and outdoor structures: Mitigates dry rot, mold, and rust.
- Replacing toilets: Newer low-flow models greatly cut down on water usage.
- Upgrading to double-pane windows: Boosts energy efficiency and prevents drafts.
While some upgrades do require a bigger upfront investment, they ultimately help avoid major issues that take a property out of commission for showings or turn off prospective buyers
Time Value-Boosting Improvements Strategically
Property managers know there’s an ideal window when preparing a rental for resale or a vacancy when strategic improvements make financial sense. With the hot San Diego real estate market, however, there might be a temptation to go overboard on flashy overhauls thinking they’ll provide maximum resale value.
The key is balancing high-ROI fixes with avoiding “over-improvement” – upgrades that won’t likely recoup costs or provide value for the next owner.
Kitchen & Bathroom Remodeling
A renovated kitchen or bathroom can contribute as much as 80% increased value versus its project costs. And new fixtures and appliances help command premium rents from tenants. Focus on elements potential buyers notice:
- Countertops: Quartz and solid surface most popular
- Sinks & Faucets: Undermount sinks on trend
- Flooring: Wood-look tile/luxury vinyl most affordable
- Cabinets & Drawers: Shaker-style most classic
Curb Appeal Matters
While you want interiors to impress, remember that a rental’s exterior drives that important first impression. Make the following visible upgrades to attract clients:
- Exterior paint color in a popular neutral or vibrant hue
- Drought-tolerant landscaping/hardscaping
- Outdoor lighting around entries and pathways
- New modern house numbers and mailbox
- Pressure washing walkways and fences
Future-Proof With Smart Home Elements
Today’s renters and buyers expect tech-enabled convenience and energy efficiency. Smart updates like these increase value without breaking the bank:
- Video doorbells and security cameras
- Smart thermostats (programmable and WiFi-enabled)
- Integrating voice assistants (Alexa, Google Home)
- Upgrading to smart smoke and CO detectors
- Incorporating smart switches and lighting
The goal with all improvements is ensuring maximum rental income and return at resale. Avoid overly personalized styles that limit appeal and focus on accessible design and universal elements.
Maintenance Guide By Property Type
Property needs can vary greatly depending on the type—from sprawling single-family homes to multi-unit apartments. Consider this maintenance cheat sheet by property type:
Single-Family Homes
- Service heating, AC, appliances
- Power wash siding and decks
- Tree and shrub trimming
- Gutter cleaning 2x per year
- Monitor water/utility usage
Condos/Townhomes
- Clean dryer vents & ducts
- Verify fire detector batteries
- Monitor for leaks (shared walls)
- Service elevators if high-rise
- Coordinate with HOA
Multi-Family Complexes
- Document unit condition reports
- Quickly address common area issues
- Prioritize outdoor lighting operability
- Manage pest control program
- Ensure ADA accessibility
Leverage Technology for Efficiency
For San Diego property managers juggling multiple properties across platforms, embracing technology is key to efficient maintenance coordination. Mobile apps allow seamless connection with owners, tenants, contractors, and staff. Maintenance-specific programs centralize work order ticketing, scheduling, and parts reordering. Some features to utilization include:
- Online tenant portals to submit & track requests
- Contractor database to dispatch jobs
- Inventory management for supplies
- Preventative schedule/checklist templates
- Digital condition reports & documentation
- Photo capturing for before/after imaging
The right property management software can help systemize processes while eliminating reliance on paper files and excess admin work—ultimately saving money and headaches.
Sell Value of Maintained Properties
A common dilemma PMs face is convincing sellers just how much strategic maintenance and preventative improvements impact asset value. Some statistics to demonstrate this include:
- Kitchen updates can recoup 75% average at resale
- Bathroom remodels can see 70% ROI on average
- Landscaping upgrades can boost offers by 15%
- A new roof could add roughly 15-20% to property value
- Fresh interior paint could net 100-200% returns
For reluctant sellers, also share comparable sale values for upgraded versus dated properties.
Demonstrate through neighborhood comps in their area just what a strategic maintenance plan brings in profitable premiums.
Provide Resources for Maintenance
Best Practices: As trusted advisors, property managers should provide clients and tenants with added resources around maintenance best practices. This builds goodwill while preventing avoidable issues. Some ideas include:
For homeowners/sellers:
- Quarterly market updates on value ranges
- Realtor perspectives on resale recommendations
- Checklists by season for maintenance & safety
- Reminders to replace batteries, inspect systems
For tenants:
- Guidance on monitoring for problems
- Recommended cleaning routines
- Proper usage guides for appliances
- Checklists for move-in/move-outs
- Video tutorials for minor DIY fixes
Manage Properties Profitably
At the end of the day, property managers serve an invaluable function in handling the day-to-day care of significant investments. By taking a proactive and strategic approach to maintenance and improvements, you can oversee that assets can operate profitability while gaining substantial value over time.
If you are a property managers wanting to build a trusted partnership specialized in preventative maintenance and value-boosting upgrades, contact Octo Property Services in San Diego.
Our skilled technicians and maintenance coordination provide customized maintenance and renovation services for properties throughout San Diego County. Reach out today for a free estimate and to discuss solutions tailored to your portfolio’s success!
