If you’ve funneled your hard-earned money into a rental real estate purchase, you’ll want to protect your investment by doing things correctly when it comes to rental maintenance. I’ve learned from many years of experience that properly maintaining your rentals will, in turn, take care of you financially in the long run, even throughout retirement. So, if doing routine maintenance or keeping on top of current repairs doesn’t seem like a high priority right now, you’ll want to dive into this article to get a new perspective.
I’ll discuss factors that highlight why prioritizing rental property repairs is crucial, as well as provide common inspection and repair tips, and more. With all that said, let’s get started so you’ll be informed on this topic that I feel is well worth increasing your knowledge base on.
Essential Rental Maintenance Tasks for Investment Properties
If you purchased an older property to begin with, then you’ll definitely want to stay proactive with maintenance, as well as routine inspections. For those who bought a new construction rental, you may not have to worry about major repairs for years to come, but regular inspections from the start would be wise. Either way, the details below should give you a good handle on keeping your property in tip-top shape. Ok, now let’s cover the basics:
1. General & Emergency Rental Real Estate Repairs
General repairs, although not an emergency, are just as important. Why? Because if a landlord is not attending to the everyday repairs that are needed, such as a broken dishwasher or dryer that takes two cycles to actually do the job, then a tenant will become frustrated and move out and a high vacancy rate may become a problem.
Believe me, you’ll want to do everything in your power to avoid vacancy rate issues. You can view my post on the topic of vacancies to understand exactly why you’ll want to avoid them – Do Vacancy Rates Matter in Real Estate Investing?
On top of all this, when landlords let things go, the original issue may become much worse and lead to costly repairs. Additionally, repairs left on the wayside may eventually cause the property to become run down and lose value, or it will prevent the property owner from being able to charge the maximum rental rate. You can gain more insight into how to justify raising your rates by heading over to my article – The Driving Factors Behind the Ability to Charge Higher Rental Rates.
My best tip would be to hire a property manager (PM) to handle all these day-to-day rental maintenance issues. It will take these repair chores off your back and place them on a professional company that’s used to dealing with repairs and tenants. If you’re not familiar with the role of a PM, then dive into my post for more details – The Ultimate Guide to Residential Property Management.
Should Have a Separate System for Emergency Repairs
For rental maintenance calls that are considered emergencies, such as major water leaks, a landlord would need to have a system for handling things in a speedy manner. This would include having a maintenance staff that can be on call, even in the middle of the night.
The property owner would also need an efficient communication method where the tenant will be able to reach someone no matter what time of day it is. A property manager would be best suited for this role also, unless you’re ok with taking those 2 AM calls when the heater breaks in the dead of winter.
2. Conduct Routine Rental Property Maintenance Inspections
In addition to common fixes on an as-needed basis, maintenance inspections should also be conducted each year. Besides an annual or seasonal inspection, there are also various situations that would call for specific inspections. This would include a move-in and move-out walk-through.
As for annual inspections, know that they are essential to keeping your property in great condition, free from hazards such as mold or fires, and the like. Inspecting annually will also give you an opportunity to check up on your property to ensure your renter is either taking care of it or doing harm.
Here are some of the main items that are inspected during an annual walk-through while a tenant is still in place:
- Plumbing Leaks
- Running Toilets
- Mold Issues
- Smoke Alarms
- HVAC Filters
- Bug or Rodent Infestation
Seasonal inspections would be more likely to happen in locations where bad weather could cause damage. Because of this, a landlord may do a seasonal inspection in the winter. The same items listed above would most likely be checked during a winter inspection, plus the following:
- Ensure the Heater is Working Properly
- Check Fireplace and Chimney
- Make Sure Gutters are Clear
- Inspect for Water Damage/Mold
Move-in & Move-Out Rental Inspections
If you own a rental property, or you were a tenant at one point, you’re most likely familiar with move-in and move-out inspections. Performing inspections such as these are a must for a rental property owner, for obvious reasons.
For starters, a landlord would be very motivated to inspect their rental for damage soon after a tenant moves, especially since they have a specified amount of time to return the deposit. Regarding this, you’ll want to bookmark the following article I put together for future reading – Safeguarding Your Investment: Understanding Tenant Background Checks and Security Deposits.
Secondly, a move-out inspection is recommended so the landlord can see what will need to be done to prepare the property for the next tenant. Upon moving out, landlords look for anything that is above the normal wear and tear for the amount of time the tenant occupied the rental. Below, you’ll find the most common elements taken into consideration during a move-out walk-through.
Move-Out Inspection Items
- Deep Hardwood Floor Scratches
- Excessive Damage to Carpet
- Dents or Holes in Walls
- Bathroom and Kitchen Elements
- Plumbing Leaks
- Fire and Carbon Monoxide Alarms
- Ensure There are No Broken Windows
- Check if Electrical Outlets are Loose
- Light Fixtures Have Working Bulbs
- Inspect for Loose Cabinet Doors
- See if All Appliances are Working Properly
- Outdoor Elements – Garage Door, Driveway, Lawn, Hoses, and the like.
Regarding move-in inspections, when a new tenant signs a lease, they may inspect the rental themselves and report back if there are any issues. Or sometimes the tenant and landlord will inspect together. Here are some of the most common things that are inspected upon move-in:
Move-In Inspection Items
- Door Locks
- Kitchen and Bathroom – Garbage Disposal, Fans, Cabinets, and Drawers.
- Windows, Screens, and Blinds
- Lighting
- HVAC Functioning
- Appearance of Walls, Carpeting, and Flooring
During a move-in inspection, the tenant would keep an eye out for anything that doesn’t look right so they can report it and not be charged upon move-out. The landlord would inspect for items they may have missed while they were preparing the rental for the new tenant.
Inspection Checklists are a Must for Proper Upkeep
Now, as you can imagine, this can all get a bit overwhelming with so many elements to inspect for possible repairs. Because of this, it would be wise to use inspection checklists. To get more information on this subject, head over to my article – Streamlining Rental Property Inspections by Creating Effective Inspection Checklists.
A landlord should have their checklist already prepared so they can quickly and easily inspect their rentals. There should be several grab-and-go lists – one for an annual inspection, one or more for seasonal inspections, as well as move-in and move-out checklists.
If you’re a hands-on person, you can create your own lists using an Excel spreadsheet. Or, get help from software designed to create specialized lists for you. Below, you’ll find a few options for software that can create your rental property inspection checklist for you:
While you’re doing an inspection, it would be a good idea to make note of any elements that may need to be renovated in the near future. Renovations can increase the value of the property – it’s like an instant equity boost. Below, you’ll find two articles on renovations that I think you’ll find interesting:
- Ten Rental Property Upgrades That are Worth Considering
- Should You Renovate Your Rental? The Pros & Cons
Tips for Handling Maintenance Requests from Tenants
Now that you have a better idea of the ins and outs of rental maintenance, you’ll want to be sure you’re well-equipped to handle the repair requests that come in. The first thing you’ll want to do is have a reliable system for reporting and addressing maintenance issues.
If you only have one property and you enjoy taking care of the rental yourself, this may not be too complicated. Most landlords in this position will just give the tenants their direct phone line. However, for those who have stepped up their investment game by adding several properties, it becomes unmanageable and risky to care for them without professional help. I can’t imagine any landlord would even want to take that task on anyway. Here are a few tips for those who want to master the process:
1. Good Communication is Key
Whether it’s the landlords themselves or a third party who cares for a rental, the first step in making all maintenance tasks a success is good communication. This can be done by either giving a tenant your direct line, or the number to your property manager. Even better and more efficient is a web portal where tenants can log in to submit a repair request.
No matter what method is used, the tenant must be able to reach someone in case of an emergency, possibly the property owner or PM, during office hours, and maybe an after-hours call center, too. The bottom line is that proper communication is one of the most important steps, and if done correctly, it sets the stage for a smooth process.
2. Hire Recommended and Reliable Repair Maintenance Staff
Even if you have a perfect system for good communication, it will all be in vain if those you hire to make repairs are either unreliable or don’t do quality work. I know someone who lives in a rental where the maintenance experience has been a nightmare, and I can tell you that they are not renewing the lease because of it.
Their experience included no one showing up the day the repairs were scheduled, a water pipe leaking after it was just repaired, paint dripping on their carpet and couch as their ceiling was painted, and this happened because no one bothered to put plastic down, and the list goes on.
If you don’t know who you can trust, you can speak to fellow investors about who they typically use. Or, even better, use a property manager who will either have maintenance staff on their payroll or independent contractors they use and trust.
Best Way to Handle ALL Rental Maintenance Tasks is to Use a Property Manager
You may have picked up my opinion of property managers throughout the article, but when it comes to handling rental repairs, the best advice I can provide is to utilize a property manager who can take care of every aspect of the job. Property managers have extensive experience when it comes to maintenance, from using repair request portals to understanding legal compliance, and everything in between.
Some property management companies have a full team of maintenance staff on their payroll, while others have contractors they trust and have worked with for years. A PM has the proper resources to take that 2 AM emergency call and dispatch the proper repair team when needed. They also have reporting systems that track yearly repairs and their costs, and may be able to save the landlord money by running such an efficient system. Regarding this, you’ll want to head over to my related post – Financial Advantages of Using a Property Management Company.
If increasing your ROI and cash flow, as well as your wealth in general, is your goal, then a PM is better equipped to help you achieve that goal. They have the ability to take care of every aspect of your rental, not just repairs, and this frees up your time to focus on building your wealth and your rental portfolio.
Power Resources for Investors
If you’re serious about increasing your wealth or even retiring early, then you’ll want to step up your game by diving into our power resources below:
Also, here are a few articles you’ll find helpful when it comes to protecting your investment:
- Risk Mitigation Strategies for Real Estate Investors
- Exploring Landlord Insurance Coverage – What Does It Include?
- Protecting Your Real Estate Investment for Long-Term Profitability
- What You Need to Know About Landlord-Friendly States
- Understanding Rent Guarantee Insurance – Coverage and Benefits
Streamline Your Rental Maintenance Process to Keep the Cash Flow Steady
In the end, maximizing ROI, cash flow, and your net worth should be your end game, and being diligent when it comes to rental maintenance will help you get there. As I mentioned, using a property manager is the best path to streamlining the repair process and having things go smoothly for both you and your tenant.
If you’re looking for a rental property that won’t require much maintenance, then I recommend acquiring a new construction property. New construction rentals will have a new roof, new electrical, plumbing, appliances, windows, and so on. This way, you won’t be bombarded with major repairs in the early stages of the rental, the way you would with a fifty-year-old property.
Our full-service investment company offers build-to-rent properties in lucrative locations. Along with this, we also place an experienced property manager and a tenant. This way, you’ll start cash flowing right from the start. If this has sparked your interest, feel free to schedule a call with Morris Invest so we can help you get the ball rolling.
Before you go, check out my video that will give you an idea of how much easier and lucrative it is to just buy a new construction property:
