Property repairs are expensive. And while postponing maintenance might give the impression that you’re saving money, deferred maintenance can cost you far more when an issue is finally addressed. Landlords who delay upkeep risk long vacancies, unhappy tenants, and lost profits.
Here’s a look at how neglecting even small maintenance tasks can kill your rental profits, and what you can do about it.
Not hiring a property manager
If you don’t have a property management company handling your maintenance, it’s costing you more than you think. Handling everything on your own saves money on management fees, but the hidden costs of DIY maintenance can quietly eat your profits. Without a property manager, you risk:
· Delays and bigger repair bills. That small, $100 plumbing fix can quickly turn into a $1,500 drywall and mold removal job.
· Higher turnover. Tenants expect landlords to handle maintenance. If they feel ignored, they’ll move out, and leave you with a vacant unit you’ll need to clean and remarket.
· Lawsuits. If a tenant gets hurt because of an issue you never addressed, they can sue you – even if it was on your to-do list.
· Spending too much time and effort. You’ll have to chase down repair professionals, schedule the work, and handle late-night calls from tenants. You have to be available 24/7 for emergencies.
Professional property management is the answer. For instance, Green Residential, a full-service Apartment Property Management in Houston, helps Texas landlords stay ahead of costly repairs by providing routine inspections, 24/7 emergency repairs, and access to qualified contractors. Their team handles everything from emergency calls to preventive upkeep to ensure small issues don’t escalate into expensive liabilities. You can get all these benefits (and more) by hiring a local property management company.
Skipping regular inspections can lead to serious damage
Neglecting routine inspections can turn small issues into major problems and expensive, surprise repairs. Many issues start off small, but quickly escalate. Conducting routine inspections can catch these issues before they cost thousands. For example, cracks in the foundation, water intrusion, and failing seals all start small, but lead to structural damage when left unaddressed. Foundation repair isn’t cheap.
Water intrusion is a particularly expensive problem to deal with, so it’s crucial to conduct repairs at the first sign of a problem to prevent further damage. When drywall in the ceiling becomes soaked, it can cave in from the weight, the plywood sheathing will start to rot, and all of it – including the insulation – will grow mold. Over time, one small unaddressed water leak can lead to an entire roof replacement.
Not including tenant responsibilities in the lease
Many landlords assume tenants know how to take care of a property, or that common sense will guide them to complete their responsibilities, like cleaning the gutters and the chimney. However, that’s not how it works in reality. If your lease doesn’t clearly outline exactly what you expect your tenants to do, you’re setting yourself up for problems.
Not only will some tenants completely ignore basic tasks, but if you end up in court, the judge will look to your lease agreement to determine who is right. It might seem obvious that tenants are responsible for cleaning the gutters, but if that’s not specified in the lease, it’s not enforceable.
Make a detailed list of small things you want your tenants to be responsible for, like changing smoke detector batteries, cleaning the dryer lint trap, cleaning the gutters, and removing moss from the roof. Also include a clause that requires tenants to notify you immediately of any leaks or problems. Spell everything out and don’t leave anything to chance.
Trying to DIY all repairs
Let’s face it. No matter how much you enjoy fixing things, you will hit a wall and regret taking on all repairs yourself. While DIY might seem like a good way to save money, it usually leads to wasted time, incomplete fixes, and expensive repairs when you have to call in a pro.
You might be good at learning new skills, but it’s best to hire a pro for anything that involves code compliance and specialized training, like plumbing, electrical, and HVAC work. One wrong move could lead to a bigger repair bill, a lawsuit, or fines from the city.
Preserve your profits with professional maintenance
Handling maintenance and repairs before they escalate is the best way to avoid draining your rental income. With proactive budgeting, preventive care, and the help of a property management company, you can protect your profits and keep happy, long-term tenants.