Stress Testing and Big Unforeseen Spend on Properties
Pinpointing your lowest earning stock looked at how to identify your lowest earning properties, in this next one, we give an example of how you can stress test properties that need an unforeseen investment,
Our StockProfiler tool always allows for you to stress test on –
– Rent Uplift
– Major repairs deferment
– Maintenance and management uplift
– Voids %
The two properties have the same additional investment requirement but differing results. Property A still has a good NPV against the average after additional spend, but Property B falls below the average for the area.
The next stage is to investigate the detail of the additional investment on Property B to see if it is changing or eliminating any future requirements for Investment.
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