Unsuccessful investors of real estate usually focus on the purchase of a property, then hope for the best. Successful investors focus on the operation after the purchase. As you own more and more real estate over longer and longer periods of time, you will find that the clock is your best friend or your worst enemy. So use it wisely!

When looking at a investment property over a long or mid term period, a critical issue you need to keep in mind is the physical status of a property and how it affects your profitability and financial growth. All too often a piece of property is purchased and then abandoned to operate without any thought about the plaster, paint, wiring, pipes, roof and so on. The intent of an investor is usually create as much cash flow as you can and, yes, cash flow is good. But, if that cash flow comes because you've allowed property elements to deteriorate, then the little profit you are taking now will be eaten up exponentially by the financial beating you're going to take later.

Wise management and operation will prove doing the work when it should be done will achieve better returns than allowing maintenance issues to go as long as possible before responding. Simple preventive maintenance items that are ignored will compound because of the ravages of time and will inevitably cost you a whole lot more to repair than they would have cost to maintain them when a maintenance need first arose.

For example, a dripping bathroom p-trap that would take 30 minutes and a $5.00 part to fix. If left unattended it will warp the cabinet, deteriorate the floor and possibly allow mold to invade subfloors, sheet rock, carpeting and pad. A five dollar fix from a few months ago could now cost hundreds if not thousands of dollars to rectify. Without doubt the proper and prompt repair of investment properties is the best expense control program you will ever have. Many owners have learned this lesson the hard (and expensive) way. Don’t be one of those.

To avoid falling into the disrepair trap, you need to make sure you have a good process in place for handling maintenance and repairs. A good process is one where it is easy to assign tasks or work orders to your maintenance personnel, and one where it is easy to see what has and hasn't been done.

If you inspect your properties frequently and make the repairs and upgrades without delay, you will save yourself many thousands of dollars over the long run. You will also maximize your income because of the quality of your property and thereby increase your NOI and market value. If your purpose in investing is to make a profit, then you must maintain your properties properly. So do the work as soon as it is identified and do it right. You’ll be dollars and hours ahead. And after all is said and done, real estate investors are capitalists, and intelligent maintenance is a capital idea.