Property owners will get what they put in when it comes to repair and maintenance (R&M). The more you invest in preventive maintenance and high-quality repairs on your building, the better your returns on investment (ROI) will be. Owning a building comes with a responsibility for the safety of its occupants. Investing in proper R&M can help you keep your tenants happy, prevent premises-related accidents, avoid expensive equipment breakdowns, and save money in other ways. Before you discredit R&M as “too expensive,” consider its potential returns.
Tax Breaks and Deductions
The federal government encourages property owners to keep up with R&M by offering attractive tax deductions on many types of services. The majority of expenses associated with rental property income are tax deductible. This includes major projects like roof replacements and interior/exterior paint jobs. As a rental property owner, you can deduct operating expenses, repairs, property taxes, mortgage interest, and depreciation. All R&M and related supplies and materials you need to keep the property in good operating condition are tax-deductible.
Major Savings on Future Repairs
One of the most attractive reasons to invest in R&M is to avoid and prevent much more costly repairs in the future. Roofing systems, gutters, plumbing, water heaters, HVAC, electrical components, and other main elements of a home need regular maintenance to operate at full capacity. Otherwise, they’re prone to problems and breakdowns, like roof leaks or burst water pipes. If you wait too long to schedule maintenance and repairs, you could have an extremely expensive problem on your hands – one that could damage property and even injure tenants.
Longer Appliance Lifespans
A new roof or HVAC system isn’t cheap. Don’t you want to maximize the lifespan of these expensive appliances, if you can? A consistent R&M schedule means regular appliance inspections, cleanings, and minor repairs to keep them operating at maximum efficiency. This means not only saving money on monthly utility bills, but getting the most years out of your investment. Paying for R&M really saves you the costs of replacing equipment and property features before their time.
Tenant Accident and Injury Prevention
A premises liability lawsuit could cost you thousands. Paying for a tenant’s medical expenses, property damage, lost wages, pain and suffering, and potential punitive damages could run you out of business. It is your legal responsibility as a property owner to reasonably prevent tenant injuries. You must do so by scheduling regular property inspections, repairs, and maintenance to avoid risks such as trip and fall hazards and gas leaks. R&M not only fulfills your legal duty to tenants, but it can save you considerable money in accidents, property repairs, and lawsuits.
Higher Property Values
R&M can increase the overall value of the properties you own. Keeping a property and all of its appliances in proper working condition can maximize the value of the land and building, rather than diminishing it by allowing the property to fall into a state of disrepair. If you ever want to sell your property, regular upkeep and improvements can mean a much higher listing price. Property improvements can also translate into higher rents and better residents – all of which can increase your bottom line.
Property management and maintenance looks different today than it did 10 years ago. Today, the most profitable management makes use of customer data to tailor plans and strategies specifically for each person. Technology-centered property management companies are here to stay and Home365’s is leading the category.