Here at Sin City Real Estate and Management, our property manager Alexis often explains to our clients that, “When you rent a car, you don’t pay for the oil change or a transmission swap. Why should renting a home be different?” The core premise can be identified that if a feature stays with the property when a tenant leaves, maintaining it is the owner’s investment responsibility. Fair, responsible property management requires a clear boundary: tenants pay for their actions (neglect/damage), while owners pay for assets (normal wear and tear).
For owners, the structural and mechanical assets must be identified and professionally serviced and/or updated. Identifying the age and condition of HVAC systems, water heaters, as well as built-in appliances is crucial in proactive maintenance and tenant retention. Being aware of the quality of these assets allows for preparedness, as well as protects your return on investment (ROI). Avoiding professional diagnosis or service is an irresponsible business practice, that not only depreciates the asset, but also creates costly repairs later. Read our blog from January 8th for more on the benefits of proactive maintenance.
A professional contractor, plumber, or electrician, (basically an expert tradesperson) are most often able to tell when damages are from normal wear and tear or neglect and abuse. A plumber can see if the tenant is flushing items that they should not be, an electrician can tell when an outlet’s wiring has been tampered with, and a contractor can notice when someone has used spackle to repair a hole. Tenant damages are often reduced to, “you break it, you fix it. You use it normally; the owner preserves it.” Read our previous blog post from January 22nd for more on understanding wear and tear compared to tenant caused damages.
Every tenant has the right to a habitable home; this right being threatened is a direct violation of the Fair Housing Act. Essential appliances like heating, cooling, and hot water are not “luxury perks”, these aspects dictate basic legal habitability. Neglecting maintenance or selectively denying repairs can inadvertently lead to Fair Housing violations and discrimination claims. The cost of a lawsuit or fair housing complaint heavily outweighs the cost of a standard AC or appliance repair.
The best practices for property managers and homeowners come down to compliance and explicit lease agreements. Do not rely on guesses or assumptions, every decision should be backed by fact and knowledge. In the lease, clearly state what constitutes as tenant wear and tear versus tenant neglect. Outline all the responsibilities that the tenant must adopt while living in the property. Ensure that the tenant is fully aware of maintenance reporting procedures from day one, allowing for consistent and efficient maintenance requests. Maintenance should not be left until it becomes an unexpected emergency that hike up costs. Maintenance is an inevitable operational cost that ensures a consistent ROI.
The bottom line for rental properties is happy tenants stay longer, and tenant retention is the key to long-term profitability, financial stability, and operational efficiency. There is also no denying the fact that a well-maintained property appreciates faster. The next time you take a gaze at your portfolio, review your maintenance workflows. Are you treating your tenants like partners, or are you asking them to pay for your “oil changes”?
Stay connected with Sin City Real Estate & Management. Read every Thursday for a new edition of our Thursday Management Minute. A weekly insight into effective and up to date information on real estate and property management. Check us out on social media with the username @sincitymanagement.
