There are different ways of calculating the net profitability of an income property. The classic formula is: rental income minus operating costs will give the net profitability of your rental property. One of the many benefits of the Testudo solution is that it enables you to increase your net profitability. Here are some of the impacts:
3 impacts on your net profitability
First of all, operating costs include the cost of maintaining your building’s flat roof. These fees vary from year to year, and are sometimes considered unnecessary. Unfortunately, too many investors postpone them in order to maximize their net profitability, which ultimately increases losses due to emergencies. With the Testudo solution, preventive maintenance is included in the fixed monthly payment.
In second place are emergency repairs. This work is unforeseen, but necessary because it has a major impact on the quality of your investment. If carried out in a hurry, emergency work reduces the value of your investment, because the roof will have to be redone more quickly than planned. We’re even seeing practices among our competitors where the roof is completely redone instead of repaired. With the Testudo solution, we take care of emergency work in a sustainable way. This in no way affects the quality of your building. What’s more, the work is included in the fixed monthly payment.
Finally, under operating expenses, a sum of money is set aside to pay for a complete overhaul of your commercial building’s flat roof in the future. With the Testudo solution, a commercial roof can last up to 40 years. As a result, the provision is halved. Your net profitability is higher because your operating costs are lower.
In conclusion, we can see that the Testudo solution is advantageous for investors. Testudo helps you increase the net profitability of your real estate investments. We have a direct impact on your equity. As an investor, you can therefore make other investments more quickly.
We understand your business and want to help you maximize the return on your investment. For a demonstration of what we can do for you, contact us for a free inspection.
