If you’ve been thinking about construction projects or upgrades, we recommend that you get started right away. Today, we’re talking about why you shouldn’t defer any of your property’s maintenance and repair needs.
Habitability and Legal Issues The first and biggest reason for not deferring projects is that there may be legal issues with a delay. Eventually, you are going to run into a tenant who is complaining that things are broken and work isn’t being completed. An especially angry tenant might even go to the city and ask for an inspection. If the city inspector finds habitability issues at the property, you’ll need to do those repairs anyway. And now, you have this legal battle hanging over your head which could cause more problems at any point.
If you defer the work for a really long period of time, and someone at the property gets hurt because of that deferred maintenance, you’re looking at a big lawsuit. Make sure that you are making repairs in a timely manner, especially if those repairs are safety concerns as well. Don’t give your tenants a reason to complain, move out, or file a formal dispute. Deferred Maintenance is Costly
Waiting to complete necessary construction projects will ultimately cost you money. The longer you wait, the more complex and expensive the problem gets. Not only do you have inflation working against you, but you’re also allowing your property’s condition to deteriorate. Annual inflation will hover at around three percent. And then, with something like a water heater that needs to be replaced, waiting too long can lead to dry rot spreading through the house and costing you more money by the day. You really do not want to defer maintenance if you have the ability to pay for something and get it done. It hurts your ROI. Proactive Maintenance Justifies a Rental Increase Another good reason to get these projects done is that when it comes time to renew the lease and raise the rent, you are able to justify doing so. If you have not maintained the property to a tenant’s expectations and important projects have not been completed, you can expect to run into a lot of push back when it comes time for renewing the lease or renting the property to a new tenant.
If your property isn’t well-maintained, you may not be able to place a new tenant right away. So, losing the tenant you already had will be expensive. You’ll have a longer vacancy period, and you’ll have to spend even more money turning the property over. Your rents are not going to go up and they might even decrease. Don’t let your rental income stagnate because you didn’t make those repairs.
We recommend you talk to your property manager about the necessary repairs and maintenance and what you can do to make your property more attractive to good renters. If you have any questions, please contact us at The HLW Group. We would be happy to help you or answer any further questions you have.