How to Manage Your Property Maintenance

As a landlord, optimal property maintenance contributes to both the longevity of the property itself and the satisfaction of your tenants.

Not to mention, your mental well-being by way of reduced stress.

Not only does regular maintenance ensure that the property remains in good condition, it also helps to prevent costly repairs down the road.

However, it can be difficult for landlords to keep track of all the aspects of their rental property maintenance. Especially the cost of those repairs and maintenance.

That's the purpose of this guide, which goes over everything you need to know about rental property maintenance.

To begin, let’s talk about some of the most important rules of thumb for maintenance costs.

Part I: Know the Rules of Thumb for Maintenance Costs

As a landlord, one of the most important aspects of maintaining a rental property is understanding the costs associated with it.

While every property is different, there are some general rules of thumb that can help landlords budget for maintenance costs.

Typical maintenance costs for rental properties

According to a study by the National Apartment Association, the average landlord spends between 30-50% of their rental income on maintenance and repairs.

This can include costs such as painting, landscaping, pest control, and HVAC maintenance.

That number might sound high, but it's no so outrageous when you factor in everything.

Factors that can affect maintenance costs

The location and type of property can greatly impact maintenance costs. Properties in urban areas tend to have higher costs due to higher labor and materials costs.

Also, properties with more amenities or special features may also have higher maintenance costs.

And, of course, the age of the property always plays the biggest role in the amount of regular repairs and maintenance need, combined with how recently areas of the property were renovated.

How much should landlords budget for maintenance costs?

Emergencies can happen at any time, and it is important for landlords to budget for unexpected repairs and maintenance.

This can include setting aside a portion of the budget for unexpected repairs, as well as having a plan in place for handling emergencies.

The general rule of thumb is to budget 10% of your rental income to go toward maintenance.

However, some landlords consider that to be too low.

Keep in mind as well that this can vary depending on the location and type of property.

This can also vary depending on the rental property maintenance services that are needed in a particular year (one year you might need some major HVAC replacement, another your costs might be lower).

Determining the actual costs of maintenance

To determine the actual costs of maintenance, landlords should keep track of all expenses related to the property, including repairs, materials, and labor.

By doing this, landlords can get a better understanding of their true maintenance costs and adjust their budget accordingly.

Part II: Tax Rules for Rental Property Maintenance Deductions

Rental property maintenance can be a significant expense for landlords, but fortunately, many of these expenses are tax-deductible (hurray).

Understanding the tax rules for rental property maintenance deductions can help landlords save money on their taxes and make the most of their expenses.

Potential tax deductions

Landlords can deduct rental property maintenance expenses as business expenses.

However, they must follow some rules, including that:

• Expenses must be ordinary and necessary for the property
• Expenses must be for the current tax year
• Expenses must be for the purpose of earning rental income

Some examples of tax-deductible maintenance expenses include:

• Insurance
• Property management fees
• Advertising and marketing costs
• Cleaning and janitorial services
• Legal and accounting fees
• Utilities
• Security and pest contro

How landlords can take advantage of these deductions

To take advantage of rental property maintenance deductions, landlords should:

• Keep accurate records
• Keep receipts
• Understand what expenses are tax-deductible
• Understand the limits of deductions

How to report rental property maintenance deductions on tax returns

To report rental property maintenance deductions on tax returns, landlords should:

• Report expenses on Schedule E, Form 1040
• Report expenses on Form 8829, Expenses for Business Use of Your Home
• Report expenses on Form 4562, Depreciation and Amortization
• Report expenses on Form 8582, Passive Activity Loss Limitations

Rental property maintenance can be a significant expense for landlords, but many of these expenses are tax-deductible.

Understanding the tax rules and keeping accurate records can help landlords save money on their taxes and make the most of their expenses.

Part III: How to Handle Routine Maintenance

Regular maintenance is essential for keeping a rental property in good condition and ensuring the satisfaction of tenants.

Not only does it prolong the life of the property, it also helps to prevent bigger problems from happening down the road.

Importance of regular maintenance

Regular maintenance not only keeps a property looking its best, but it also ensures the safety and comfort of tenants.

It is important to keep up with regular maintenance tasks such as cleaning and painting to prevent bigger issues from arising.

Some of the most common rental property maintenance tasks include:

• Cleaning gutters and downspouts
• Checking and sealing air ducts
• Inspecting and cleaning chimneys
• Replacing filters in HVAC systems
• Pest control
• Landscaping
• Painting
• Carpet cleaning
• Window cleaning

To keep regular maintenance costs low, landlords and property managers can do the following:

• Hire a handyman or general contractor for regular maintenance tasks
• Create a schedule for regular maintenance tasks to ensure they are done in a timely manner
• Negotiate prices with vendors and suppliers
• Keep a close eye on expenses and look for ways to reduce costs
• Consider using technology to automate some tasks

How regular maintenance can prevent bigger problems

By keeping up with regular maintenance tasks, landlords can prevent bigger issues from arising.

For example, regular gutter cleaning can prevent water damage to the property, while regular HVAC maintenance can prevent costly repairs.

Set a schedule for regular maintenance tasks

A schedule for regular maintenance tasks should be created based on the specific needs of the property.

For example, gutters should be cleaned twice a year, while HVAC filters should be replaced every three months.

By keeping up with regular maintenance tasks, landlords can prevent bigger issues from arising and keep costs low.

Part IV: Handling Property Maintenance: DIY or Hire A Professional?

When it comes to rental property maintenance, landlords must decide whether to do it themselves or hire a professional.

Both options have their pros and cons, and it's important to evaluate which option is best for the specific situation.

Pros and Cons of DIY Rental Property Maintenance

Doing rental property maintenance yourself can have many attractive benefits, but some drawbacks as well.

Let’s look at some of those benefits first.

Pros:

• Cost-effective
• Allows for personal touches
• Gives landlords control over the property

Cons:

• Time-consuming
• Requires specialized knowledge and skills
• Can lead to mistakes and costly repairs

Now, let’s look at the less attractive option - hiring a professional.

When to Hire a Professional

While there are certainly benefits to doing the work yourself, there are also certain situations where it may be better to hire a professional.

For example, if a repair or upgrade requires specialized knowledge or equipment, it may be more cost-effective to hire a professional.

Additionally, if a project is particularly large or complex, it may be more efficient to hire a professional to complete the work.

A property management business will also tend to hire professionals as they typically have dedicated contractors already.

Tips on Finding a Good Property Manager or Contractor

When looking for professionals or property management companies to handle your rental maintenance, it is important to do your research and find a reputable and experienced contractor or property manager.

Here are a few tips to help you find the right professional for the job:

• Ask for references: Before hiring a contractor or property manager, ask for references from previous clients. This will give you an idea of the quality of their work and their level of customer service.
• Check their credentials: Make sure that the contractor or property manager is properly licensed and insured.
• Get multiple quotes: Before committing to a contractor or property manager, get quotes from multiple professionals. This will help you compare prices and find the best deal.

DIY vs. Professional: Common Tasks

Below are some common maintenance issues that arise in a rental property and whether they scan be DIY or if they require a professional.

• Painting: Painting is a relatively simple DIY task that can be done by most homeowners.
• Basic carpentry: Basic carpentry tasks such as building shelves or installing a new door can also be done by most homeowners.
• Electrical work: Electrical work can be dangerous and should be left to a professional electrician.
• Plumbing: Basic plumbing tasks such as unclogging a drain can be done by most homeowners, but more complex tasks such as installing a new toilet or water heater should be left to a professional plumber.
• HVAC: HVAC repairs and maintenance should be left to a professional HVAC technician.

Evaluating the Cost-Effectiveness of DIY vs Hiring a Professional

When deciding whether to DIY or hire a professional, it is important to consider the cost-effectiveness of each option.

Here are a few factors to consider:

• The cost of materials: When doing a DIY project, you will need to purchase the materials needed to complete the project. Compare this cost to the cost of hiring a professional to see which option is more cost-effective.
• The cost of labor: Hiring a professional will typically cost more than doing the work yourself, but you will need to consider the value of your own time when making this comparison.
• The potential for mistakes: DIY projects come with a certain level of risk, and mistakes can be costly. Consider the potential for mistakes when comparing the cost-effectiveness of DIY vs hiring a professional.

Remember that, before everything, you are a real estate investor and you don't want to lose money or spend money unnecessarily.

Part V: The Three Most Critical Areas of a Property Maintenance Strategy

A successful maintenance strategy for rental properties should prioritize safety, comfort, and appearance.

These three areas are crucial for landlords and tenants alike and should be a top priority for any maintenance plan.

Safety

Ensuring the safety of tenants is the most important aspect of a maintenance strategy.

This includes regular inspections to identify potential hazards, such as structural issues or fire hazards.

It also includes emergency preparedness, such as having a plan in place for handling emergencies.

Examples of how to maintain safety in the property

To maintain safety in the property, landlords can do the following:

• Conduct regular inspections to identify potential hazards
• Have a plan in place for handling emergencies
• Ensure that the property is up to code
• Have working smoke detectors and fire extinguishers on the property

Comfort

Maintaining the comfort of tenants is also an important aspect of a maintenance strategy. This includes regular HVAC maintenance, pest control, and regular cleaning. By keeping the property clean and comfortable, landlords can ensure the satisfaction of their tenants.

Examples of how to maintain comfort in the property

To maintain comfort in the property, landlords can do the following:

• Regularly maintain HVAC systems
• Regularly schedule pest control
• Regularly clean and maintain common areas
• Respond promptly to tenant maintenance requests

Appearance

The appearance of the property is also an important aspect of a maintenance strategy. This includes regular painting, landscaping, and general upkeep.

Examples of how to maintain the appearance of a property

To maintain the appearance of the property, landlords can do the following:

• Regularly paint and maintain the exterior of the property
• Regularly maintain landscaping
• Regularly clean common areas
• Make repairs promptly

A successful maintenance strategy should prioritize safety, comfort, and appearance.

By focusing on these three critical areas, landlords can ensure the satisfaction of their tenants and prolong the life of the property.

Part VI: Important Things to Remember About Rental Property Maintenance

Maintaining a rental property can be a complex task, and there are many important things landlords should keep in mind.

From communication with tenants to handling emergency maintenance, it's important to have a plan in place to ensure the satisfaction of tenants and the longevity of the property.

Some of the things landlords should keep in mind when maintaining their rental properties include:

• Budgeting for maintenance costs
• Regular maintenance tasks
• Safety and emergency preparedness
• Communication with tenants
• Handling complaints and requests
• Being responsive to tenants' needs
• Keeping the property in top condition

Importance of communication with tenants

Communication is key when it comes to maintaining a rental property.

Landlords should be responsive to tenants' needs and be willing to listen to complaints and requests.

By communicating effectively, landlords can ensure the satisfaction of tenants and prevent issues from arising.

How to handle complaints and requests from tenants

When handling complaints and requests from tenants, landlords should:

• Listen actively
• Be responsive
• Be understanding
• Be willing to compromise
• Be professional
• Follow-up

How to communicate with tenants effectively

To communicate with tenants effectively, landlords can:

• Use a property management software
• Use a messaging platform
• Use email
• Use text messaging
• Use phone calls
• Use face-to-face communication

Handling emergency maintenance

In case of emergency maintenance, landlords should have a plan in place.

This includes having a list of emergency contact numbers, having a plan for handling emergencies, and having a list of emergency service providers.

Maintaining a rental property can be a complex task, and there are many important things landlords should keep in mind.

From communication with tenants to handling emergency maintenance, it's important to have a plan in place to ensure the satisfaction of tenants and the longevity of the property.

Ways to Streamline Property Maintenance When Residents Move Out

When tenants move out, landlords must conduct move-out inspections and prepare the property for the next tenant.

This can be a time-consuming process, but there are ways to streamline it and make it more efficient.

Some of the strategies for streamlining property maintenance when a tenant moves out include:

• Create a checklist of tasks to be completed
• Use a property management software
• Use technology to improve the process
• Conduct move-out inspections
• Handle security deposit disputes

Using technology to improve the move-out process

Quality property management software, like DoorLoop, can help streamline the move-out process by automating tasks such as scheduling inspections, creating checklists, and tracking the progress of tasks.

Technology can also include using digital inspection forms, using online platforms for communication, and using virtual tours.

This can save landlords time and ensure that everything is done correctly.

Tips on conducting move-out inspections

When conducting move-out inspections, landlords should:

• Schedule inspections in advance
• Have a checklist of tasks to be completed
• Take detailed notes
• Take photographs
• Communicate with tenants

Handling security deposit disputes related to property damage

When tenants move out, you should conduct move-out inspections and prepare the property for the next tenant.

Sometimes, you'll need to hold back a portion of your tenant's security deposit if they incurred property damage during their lease term (beyond normal wear-and-tear).

When that happens, you need to make sure to:

• Clearly communicate why part of their security deposit was held back due to property damage
• Have a process in place for handling disputes
• Follow state and local laws

So long as you follow local laws and document everything from the move-in inspection to the move-out inspection with notes, images, and anything else you have, you should be protected from any tenant complaint that arises.

Get Your Property Maintenance On Lock

Property maintenance is a big job and one you don't want to underestimate.

By following the tips and strategies discussed throughout this guide, however, you can reap all kinds of benefits from an improved landlord-tenant relationship to reduced repair costs.

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