Maintenance at a rental property is one of those topics that can be a bit of a sticking point and cause a spot of tension between landlords and tenants – with agents in the middle. Tenants want their home to be safe and comfortable.
They want to be able to enjoy their time at home and not be plagued by annoying, and sometimes worrisome, maintenance issues.
Meanwhile, landlords may not want to spend money on taking care of things they may not consider to be a priority, especially when money is tight.
But maintaining the rental is important. In fact, it is vital. Ignoring maintenance issues can open the landlord up to a legal liability claim if someone on the premises is injured or has their property damaged because of the landlord’s failure to fix something.
Say one of the wooden steps on a flight of stairs is damaged. Either the tenants tell you about it or you notice it during a routine inspection.
You tell the landlord the step needs to be repaired.
The landlord ignores the maintenance request, refusing to authorise the repair so you can’t arrange for it to be fixed.
Sometime later, the step gives way when the tenant is walking down the stairs and they fall and hurt themselves.
The landlord may now be liable for the injuries the tenant sustains and must pay them compensation.
Heads up! If you knew about the dodgy steps and didn’t tell the landlord – or the landlord had totally delegated authority to you for the management of the property, and you didn’t arrange the maintenance – then you and your agency might be held as the liable party.
Apart from avoiding liability claims, there are other good reasons why it pays to maintain a premises.
One factor that may appeal to the investor, is that maintenance helps to guard their asset.
Regular maintenance helps protect their investment by preserving the structural integrity and functionality of the property.
It is also worth considering that the value of a property in disrepair can be significantly lowered – negatively impacting its investment and rental income potential.
A well-maintained property also has better re-sale value.
Also, by carrying out routine maintenance, it can help prevent small problems from escalating into bigger issues that require costly repairs.
Proactive maintenance can help to identify and address issues early before they turn into major repair projects.
If landlords can address maintenance issues promptly, they are more likely to be able to minimise repair costs and avoid expensive emergency situations and the strain that these can put on their finances.
Heads up! It is important that landlords are aware that they cannot claim routine or maintenance costs on their insurance. These costs, like wear and tear, are simply the price of owning a property and are to be expected. Insurance covers unforeseeable events, like damage from fire, storm or water, not every day operating expenses.
Another reason to carry out routine maintenance is to keep tenants happy. Let’s face it, a tenant who is unhappy is probably more likely to cause headaches – like constant requests or tardiness with rent payments.
A satisfied tenant is more likely to treat the home like it is their own, want to renew their lease, and generally contribute to a good tenant–landlord relationship.
Showing a commitment to property maintenance lets tenants know that their concerns are heard and that their comfort and well-being is important.
While some maintenance requests may be purely aesthetic, like the tenants requesting paint or scratches being touched-up, others could jeopardise insurance cover if they go unattended.
There is a condition in most building insurance policies that requires the premises to be adequately maintained.
The reason for this is quite simple. A poorly maintained property is more likely to suffer damage.
So, if a lack of maintenance causes or contributes to a loss, then any insurance claim is likely to be impacted – it may result in the claim being limited or even denied.
One area where there is often a lack of maintenance contributing to a loss is roofs.
What can seem to be minor issues or damage, for example a cracked tile or loose Colorbond sheet, can become a much bigger problem.
The small crack or loose sheet allows little drips of water to enter the roof space. This leads to a water stain on the ceiling.
This is noted in the inspection reports. Then a major storm hits, and the wind causes the loose sheet to lift, or hail causes a hole to form in the cracked tile.
That opening in the roof, allows water into the roof space.
The volume of water entering the roof is so great that it causes the ceiling to collapse.
The loss adjuster sent by the insurer determines that while the storm caused damage to the roof, the roof was in poor repair (as evidenced by the water stain caused by the leak of water entering the roof space over a prolonged period), and this contributed to the loss.
In this instance, the insurer may not cover the full cost of the repair, and the landlord must pay the difference.
Safeguarding insurance cover is like a huge flashing neon sign as to why landlords should maintain their rental.
Neglecting maintenance could lead to reduced or even rejected claims, putting an investment property at risk.
If you have questions, reach out to your EBM RentCover Relationship Manager. If you aren’t partnered with us, but would like to be, please get in touch.
