The True Cost of Deferred Maintenance

1. Escalating Repair Costs

   • Small issues, such as a leaky faucet or minor roof damage, can become expensive problems if left unresolved. For example, a small plumbing leak might lead to water damage, mold growth, and even structural issues over time.

2. Reduced Property Value

   • Properties with noticeable signs of neglect, such as peeling paint, cracked driveways, or broken fixtures, can deter potential buyers or tenants. Over time, these issues can significantly lower your property’s market value.

3. Higher Tenant Turnover

   • Tenants expect a safe and well-maintained living environment. Neglected maintenance can lead to frustration, resulting in higher tenant turnover and longer vacancy periods.

4. Legal and Safety Risks

   • Deferred maintenance can create unsafe conditions, such as faulty electrical systems or structural hazards. Landlords may face legal liability if these issues result in tenant injuries or noncompliance with housing codes.

5. Increased Energy Costs

   • Issues like drafty windows, old HVAC systems, or poorly insulated walls can drive up energy bills, making your property less appealing to cost-conscious tenants.

How Red Herron Property Management Can Help

At Red Herron Property Management, we take a proactive approach to maintenance, ensuring your property remains in excellent condition while saving you money in the long run. Here’s how we handle it:

1. Regular Inspections

   • Our team conducts routine property inspections to identify and address potential issues before they escalate. From plumbing leaks to roof damage, we spot problems early to minimize repair costs.

2. Scheduled Preventative Maintenance

   • We develop customized maintenance schedules tailored to your property’s needs. This includes seasonal HVAC servicing, gutter cleaning, and more to keep your property in peak condition year-round.

3. Prompt Repairs

   • When issues arise, Red Herron Property Management coordinates prompt and professional repairs using our network of trusted contractors. This minimizes downtime and disruption for your tenants.

4. Cost-Effective Solutions

   • By addressing maintenance needs proactively, we help you avoid the higher costs associated with emergency repairs and property damage. Our team prioritizes cost-effective solutions without compromising on quality.

5. Enhanced Tenant Satisfaction

   • A well-maintained property leads to happier tenants, resulting in longer leases and lower turnover rates. Our maintenance services ensure your tenants enjoy a safe and comfortable living experience.

A Cautionary Tale

I once had a new owner who had just hired Red Herron Property Management. We got a call from the tenant that the air conditioning system was failing. When the HVAC technician came out, he found the main reason the system failed was due to poor preventative maintenance. He recommended a full replacement, which would cost $7,500. Since it was February in Florida, we had the opportunity to replace the system when it was convenient for both the HVAC company and the tenant.

The owner, however, asked if there was a less expensive way to repair the problem. The HVAC technician offered an $850 repair with no warranty, as the issue couldn’t be fully resolved without replacement and would fail again. Against our recommendation, the owner opted for the less expensive repair. I informed him of the likely outcome: the system would work for a few months but would malfunction during the peak of the hot season.

Sure enough, in August, the system failed again. This time, it was an emergency, and the replacement cost increased to $9,600 due to higher material costs and the urgency of the situation. In the end, the owner paid $2,950 more than the original replacement cost, including the $850 for the initial repair. He gambled, and he lost.

This story highlights why proactive maintenance and addressing issues properly the first time are essential to saving money and avoiding headaches.

Final Thoughts

Deferred maintenance might seem like a way to save money, but the long-term costs can be far greater. Regular repairs and preventative care are essential to protecting your investment, maintaining tenant satisfaction, and ensuring the success of your rental business.

Partner with Red Herron Property Management to eliminate the stress of property maintenance. Our team handles everything from routine inspections to emergency repairs, so you can focus on growing your portfolio with confidence.

Contact Red Herron Property Management today to learn how we can keep your property in top shape and help you avoid the costly pitfalls of deferred maintenance.