As a landlord, dealing with repairs goes with the territory. Whether the situation was caused by the tenant, due to normal wear and tear, or just because it's an ageing property, you’re going to have to make some repairs along the way, and things can get expensive. While it's not the most frequent way landlords choose to handle repairs, it's also not uncommon for landlords and property managers to charge a fee every time a tenant submits a maintenance request or a repair is performed, especially in multi-unit complexes.
The thinking is, if you charge for a maintenance request or require repair deductibles, you can increase your bottom line and ease the strain on your wallet. However, while it may sound like a good way to keep some money in your pocket, this practice will inevitably push tenants out and lead to real problems going unreported. Charging for maintenance requests could lead to overall higher repairs costs and frequent tenant turnover.
What’s a Maintenance Request Fee?
A maintenance request fee is just what it sounds like: a fee charged to the tenants every time they submit a maintenance request that requires you to visit the property, repair something, or have a professional inspect the area that needs attention. It’s basically like saying, “If I have to get involved, then you’re going to pay for it.”
If you charge such fees, they should be defined and agreed to in the lease.
What’s a Maintenance Deductible?
Another way to charge a maintenance request fee, or to simply protect yourself from spending big bucks on repairs is by charging a maintenance deductible, either instead of a maintenance request fee, or in addition to one. This deductible is usually a flat rate or percentage of the total cost of the repair.
While it may seem like a fair term, especially when it comes to big repairs like HVAC or structural projects, you’ll simply de-incentivize your tenants from requesting a repair.
In some cases, landlords put a price threshold on maintenance and repairs. Here’s an example: Let’s say you require a $25 maintenance deductible in your lease, meaning the tenant is responsible for the first $25 of every repair, and 100% of the repair if the cost was less than $25. While $25 doesn’t sound like much, the amount is irrelevant if the tenant shouldn’t be responsible for the repair at all. Many landlords validate this provision by comparing it to an insurance deductible.
Why Do Some Landlords Charge Maintenance Fees?
The primary reasons why landlords try to charge such fees is to:
- Offset the cost of repairs or the existing deductible of their home warranty policy
- Force the tenant to have some “skin in the game”
- Encourage the tenants to “only call when it’s important”
Many times, a landlord will have a home warranty policy on their rental property, which covers basic repairs like plumbing and appliance failures. Almost all of these policies have a service call fee, which the landlord is responsible for whenever a claim is made.
The fee is typically collected by the technician that shows up to the property. Because payment is required on-site, some landlords try to pass this along to the tenant who will likely be home to greet the technician.
Why Landlords Shouldn’t Charge Tenants for Maintenance
Maintenance requests are a good thing! It’s never fun to put money into a broken appliance, air conditioner, or anything above a minor fix. But catching problems sooner than later can save your time and money down the road. Plus, you never want your tenants to think they can’t report an issue to you. (And most likely, your tenants didn’t cause the issue anyway!)
View your tenants as your first line of defense since they will be at the property more than you. If you penalize them for reaching out to get something fixed, they might forgo reaching out in the future and simply take matters into their own hands to make repairs, or they may just stop communicating with you all together.
When tenants stop reporting issues to you, small repairs like a slight leak could grow into something major, like serious water damage over time. By enforcing a maintenance request fee, you just increase the chances that you’ll have to make a major fix later on since your tenants may choose not to report it.
Work With Your Tenants on Maintenance Issues
It may seem like an easy way to increase your bottom line, but it’s unlikely you’ll make enough money from maintenance fees or deductibles to make any serious difference in profit. Though some landlords think there are legitimate reasons for a maintenance fee, it’s just a way to nickel and dime your tenant. The only thing these fees accomplish is preventing your tenant from effectively communicating with you.
Put yourself in your tenants’ shoes. If you got charged every time you had a concern or simply wanted some potential issue looked at and you couldn’t avoid a fee, then why would you bother reporting any maintenance issues? Some tenants would simply ignore repair needs and move out at the end of the lease never giving you a head's up, forcing the landlord (you) to deal with costly repairs while your unit sits vacant.
Why should the tenant pay the landlord’s deductible for repairs that are caused by normal wear and tear? Instead, create an environment of trust and understanding, so that when a serious issue does arise, your tenants feel like they can rely on you. After all, your job is to make sure your tenants have a safe and comfortable living environment. So, trust your tenants, and they’ll have your back!
Maintenance Requests Made Simple
Dealing with maintenance requests can often feel like a juggling act. You’ve got tenants reaching out, schedules to coordinate, and service professionals to contact. It can get hectic, but Apartments.com has the solution. With our free property management tools, your tenants can submit maintenance requests online. We notify you when you have a request, and you can easily update your tenants as the repair progresses. You can even attach receipts, upload notes, and track expenses for the repairs. You and your tenants can even share images and videos. Keeping everything in one place makes it easy to keep track of repairs, how often something requires repair, and how future repairs might impact your bottom line.
Create your FREE landlord account today and get on the path to breathing easier!
Originally published on August 20, 2020
