Tuesday, June 12, 2012

Building refurbishment levy

Yesterday I received a notice that one of the buildings I own an apartment in is going to have some restoration work done to the exterior and common areas. The building in question is not over forty years old and has been well maintained over the years - the last substantial work was done in 2003/2004 and was being completed at around the time I purchased  the property.

As a landlord, this affects me in three ways:
  • I will have to pay a building levy in two installments - half now and half in December. This is the equivalent of four months of net of outgoings rent
  • while the work is being carried out there will be disruption to the occupants of the building - scaffolding, workers in the common areas, noise etc. Depending on the timing of the work this may affect any vacancy that may arise or the amount of rent I am able to negotiate
  • in the longer term, the work will enhance the appearance of the building and help it to maintain its value and its appear to prospective tenants
It's work that needs to be done and, as much as I begrudge the two cheques I will have to write, I have to accept that it is money well spent.

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