Maintenance and your investment property
In an attempt to save a few extra dollars landlords who chose to undertake maintenance on their investment properties could actually be losing time and money. They could also be opening themselves up to possible legal backlash. The issue of carrying out maintenance on your investment property is a tricky one. As experienced Property Managers we encourage landlords to seek the experience and advice of professionals. Here’s a few reasons why.:
Time is money:
As the years roll on and we become busier, many individuals are working two jobs to secure the income from their investment property/s. An important question to ask yourself is how valuable is your time? If you take 4 hours to complete a repair that would take a qualified tradesperson 1 hour, where is the value for money?
The paper trail is lost:
As Property Managers, we log and keep records of the date and time of every phone call and the conversation that takes place. Suppose you are a residential rental provider attending to maintenance, and you inform your Renter that you will return in a few days with additional hardware and not to use the faulty item. What evidence is there that the conversation took place if they do so and injure themselves? How could you defend yourself in a compensation claim?
How quickly can you respond to the maintenance request?
You’ll need to respond to urgent repairs without delay. If nothing is done, your Renter has the right to arrange for repairs to be done up to the value of $1800 - at your expense. Non-urgent repairs must be carried out within 14 days, and if not attended to, your Renter may apply to the tribunal for an inspection and subsequent report. After 60 days, the Renter can apply to the tribunal for a repair order along with a compensation claim.
Tax deductions:
You cannot claim your time and labour when it comes to tax time.If you attempt electrical or plumbing repairs, not only could you be endangering your own life, but also the life of your Renter and the safety of your property. Certain electrical and plumbing repairs also require a Certificate of Compliance by law, failure to obtain a certificate could void your insurance on the property, not to mention any possible warranty.
Keeping all these reasons in mind, why would any Residential Rental Provider want to attend to their own maintenance?
As Property Managers of the Barry Plant Group, we strongly recommend to our Residential Rental Provider that next time they receive a maintenance request they take the easier stress free option and have your Property Manager organise the repairs for you. The benefits speak for themselves:
- Hassle free
- Licensed tradespeople to attend
- Tax deductible
- Paper trail is followed
- Certificates of Compliance
- Warranty in place (where applicable)
- Renter is safe and happy
- Repairs completed promptly
- Deduct cost straight from rent, easing the task at end of financial year