Some rental maintenance issues, such as a leaky faucet, often can’t be anticipated or avoided. Other issues can be addressed before they become serious problems by following a regular maintenance schedule. These are the items that should be checked on a regular basis, whether weekly, monthly or annually, such as a yearly furnace inspection. Regular maintenance isn’t just about avoiding costly repairs but ensuring a pleasant living environment for tenants.
The rental property maintenance checklist below is not meant to be exhaustive. Each landlord will need to tailor a regular rental maintenance schedule based on his or her property. Here are some examples of items that many good landlords do regularly.
Landlords should also create rental maintenance schedules for bigger ticket projects, or capital expenditures, such as replacing carpets or repainting walls. The schedule will depend on the general wear-and-tear on each individual unit, but professional property managers recommend doing these sorts of projects (i.e., interior painting, carpet replacement) about every three years unless needed sooner.
One of the keys to maintaining your unit is to conduct rental property inspections on a regular basis. There are four types of inspections landlords can do to help ensure their properties stay in tiptop shape.
Determining how much money to allocate for rental property maintenance expenses can be tricky. Many professional property managers use what they call the 1% Rule: One percent of the total property value should be set aside to address rental maintenance expenses. Following this rule, a rental property valued at $200,000 would have a $2,000 annual budget line item for maintenance expenses.
Keep in mind this is only a rule of thumb. Factors such as the age of the property or cost of living in the area may require a larger or smaller annual budget for rental property maintenance expenses.
To account for large capital expenditures, such as a new roof, you may want to apply a different formula: the 50% Rule. This model suggests that half of all rental property income should be used for operating costs, which includes not only rental maintenance and repairs but also things like taxes, insurance, fixed fees and an escrow account for big-ticket expenses like a new roof. That means a landlord who rents a property for $1,500 per month would squirrel away $750 for rental maintenance and operating expenses.
A rental maintenance budget will also depend on whether a landlord opts to personally do most of the maintenance or hire the service to a contractor(s). The landlord should do an honest assessment of his or her skills and availability before making this decision. While it is certainly tempting to save money and go the do-it-yourself (DIY) route on rental maintenance, a landlord may find that his or her time is better spent on other parts of the rental management business.
Keep in mind that rental maintenance requires a varied skill set, from plumbing to electrical, and the ability to troubleshoot problems. Service calls can come at any time day or night. A landlord who chooses to do rental maintenance directly should be prepared for all eventualities.
Landlords should also remember that a tenant doesn’t care how much money a landlord might save in expenses by doing the work himself or herself. One of the leading causes of tenant turnover cited by renters as to why they didn’t renew a lease is poor maintenance. Maintenance should also be completed as soon as possible, as some tenants might try to make the necessary repairs themselves, which could cause additional problems, or even withhold rental until the issue is resolved. And renters could even call local housing authorities to inspect a property they feel is poorly maintained and unsafe.
Andrew Syrios, a real estate investor in Kansas City whose company owns more than 500 units in four states, maintains that good property management boils down to good rental maintenance.
As a way to keep your good tenants happy, landlords should consider it very important to conduct routine maintenance and inspections, as well as make timely repairs when needed. “Maintenance is the face of your company, and good maintenance is the best form of tenant retention there is,” he writes on BiggerPockets. “Many tenants are used to poor quality service, so if they come to your place and get good service, it substantially increases the chance that they will want to continue renting from you.”
Follow these suggestions and rental maintenance doesn’t have to a “pain point” for landlords but a point of pride and a way to retain good tenants.
