Best Practices: Budget for Rental Home Maintenance & Repairs
There are many factors that need to be considered before deciding to rent your home. One of the considerations is the maintenance and repair of that home. A couple of things you need to know about rental property repairs:
#1 Doing the Rental Property Maintenance and Repair Yourself Doesn’t Help Save Money
As a landlord, you may try to handle repairs to rental properties yourself in an effort to save money. This could be an effective strategy if you are in the construction industry or a handyman by trade, but for most property owners, this is not the case. Managing and repairing a rental property consumes a lot of time, energy and resources. You must be available for emergencies 24/7 for problems that eventually will arise. If a problem isn’t repaired properly the first time, it may lead to future complications. Professional repair companies are licensed and insured and are experts in their field.
#2 Tenants Are Not Responsible for Rental Home Repairs
As a landlord, it is important to understand that tenants are not responsible for repairs to your rental property. In fact, tenants do not hold any responsibility for the repair related to the rental home unless it is specifically outlined in the rental lease. For any maintenance or repair work, the landlord is solely responsible. The exception to this is when the damage is a direct result of the tenant. In that case, what is broken or damaged is the tenant’s financial responsibility. This too, should be outlined in the rental agreement.
Save Money from Rental Property Fees to Pay for Future Repairs
Saving money that you earn from your rental home will lessen the financial burden of future repairs. In the event there is a need for repairs, you will have money saved to pay for the repair expense. A good rule of thumb is to save 1% of the purchase price of your home each year for the anticipated maintenance and repair work. For example, if your rental home in Tucson, Arizona is valued at $200,000, you should save $2,000/year for rental home maintenance and repairs.
Rental Home Maintenance and Repair Items to Consider When Establishing a Budget
Age of the Rental Home
The property age is the main aspect to consider when setting a maintenance budget. If your home is 5 to 10 years old, then it will require little maintenance. However, if it is 20+ years old, then it will require more maintenance work such as roof repair, new appliances, remodeling, pipe cleanouts etc. Keep records of when items are repaired/replaced. This is helpful for forecasting what will need to be addressed next.
Condition of the Rental Home
If your property has had preventative maintenance and has always stayed in good condition, then that will cut down on money needed for emergency repairs. However, if your property has been neglected for years or not repaired correctly in the past, more maintenance and emergency repairs will be needed.
Weather Conditions Depending on the area where your rental home is located, it can be affected by the changing weather conditions such as sun, rain, snow etc. In Tucson, Arizona, we experience the rainy monsoon season where high humidity can damage wood and excess rain can cause leaky roofs and flood conditions. Plus, termites or other pest infestations may affect your house when the weather is rainy. Similarly, sunshine and high temperatures can cause wear on to the roof and other building materials
Consider Hiring a Professional Property Management Company
Taking on the responsibilities of scheduling preventative care, and emergency repair requests can be overwhelming. If the landlord responsibilities seem daunting, consider hiring a reputable property manager who will be there to help you handle all aspects of owning and renting your valuable asset. Let the team at Bancroft & Associates handle all of the headaches of property management, while you enjoy the financial benefits of renting out your home.
Whether you live locally in southern Arizona or live out of state from your property. Bancroft & Associates can help you manage your property. Our portfolio of rental properties in Tucson also includes rental properties from Red Rock to Benson, including Oro Valley, Sahuarita, Marana, Green Valley and Vail. At Bancroft & Associates, we believe that professional property management shouldn’t cost…IT SHOULD PAY, and our goal is “Profit in your pocket.” Call us today for more information about how we can help you: 520.881.4884