Should I fix the roof on my rental or wait.

Question

I had several roofers come out and tell me that my roof is in bad shape and needs to be repaired urgently. The inspector and my property manager said there are no leaks in the units. Should I hold off, or should I get the roof fixed right away?

I recently bought the property and the roof was supposed to be repaired by the previous owner.

Greg Scott · Answer

When thinking of buying their first rent property, people are most afraid of liability. Really, they should be most afraid of water. Aside from poor management, water is the most likely thing to destroy an investment. Get the roof fixed ASAP.Potential consequences if you do not:- Any leak can cause mold to build up. Mold will require remediation. If you are lucky, it is just some bleach and water or replacing a few sections of drywall. A major remediation can cause thousands of dollars. - A slow leak will create wet wood, which will cause rot and attract wood-eating bugs. Replacing roof trusses and studs can become particularly expensive. - A medium sized leak will cause water stains in the ceiling or slow drips and just make your place look cheap. It is harder to keep good tenants and attract new ones- A fast leak will cause ceilings to cave in. You may even need to replace floors, cabinets, or countertops. If the place becomes unlivable, your tenant moves out and you have no income.- Worth noting, because you knew this was a possibility and it was not a sudden event, your insurance will cover none of the above repairs.

Brandon Rush · Answer

Hey Jonathan,I would get it replaced sooner than later. The last thing you want is for a leak to start without you noticing it resulting in thousands of dollars in repairs. See this as a learning lesson, Do not buy property with upcoming capex unless you are getting a deal on the place or getting it replaced or credited by the seller. As I have learned the hard way, CapEx can be a killer for inexperienced investors. As I always tell my wife, just see this hit as real estate tuition. You will learn from it and it will make you a better investor tomorrow.Good luck Jonathan!

Tom Fidrych · Answer

If several roofers are saying asap then I'd get several bids and be done with it. With the inflationary environment were in, it's likely only going to become more costly.

Todd Kozak · Answer

@Jonathan BeaumontI had a similar situation. I purchased a house in need of a decent sized rehab but that was "good enough" for the tenant that was already there for 12 years. She told me all the issues but said the roof never leaked. The former owner told me it probably needed to be replaced but also that it didn't leak. Tenant moved out and the rehab started. I had many roofers look at it and all but one said replace it all or replace the half that is bad. I also thought "well if there are no leaks why not see if I can get another 5 years out of it"One reason has been stated on this post - do you want to wait it out until a leaks destroys the house? No.The other reason is this:My insurance company initially gave me a higher rate since we couldn't determine the age of the roof and it didn't look great. With the new roof, I save $770/year insurance. Roof cost $4k. So in 5 years I'll have a free 5-year old roof.Check and see if insurance gives you certain savings with a brand new roof.

Laticia Braxton · Answer

Replace the roof now and be sure to vet the contractor that you choose to go with. Make sure their license is valid (check with your state’s MHIC licensing office) and get a copy of their liability insurance certificate (make that a requirement for them to get their deposit) before they start the job. Lastly, be sure to compare details of the warranty when you are biding the job out to at least three roofers.Best of luck to you!Laticia

Colleen F. · Answer

@Jonathan Beaumont get a few bids and get it done. The difference between doing it now and 6 months from now are not big in the scheme of things. If you get a leak like @Greg Scott says it could cause a fair amount of damage. Also insurance company can come for inspection and they don't like old roofs and can cancel your insurance.

Bruce Woodruff · Answer

Do it now! As has been, mentioned, water is the biggest enemy....And don't worry about the warranty too much, they only cover materials....so if there is an issue, the supplier will just drop off a couple squares of shingles, that's all. Then you will have to pay the roofer to demo and reinstall which is where the $$ is anyway.

John Mocker · Answer

Jonathan,Most of the better Homeowners and Dwelling Fire (for rented 1-4 family) Insurance companies will do inspections. Even if it is just an exterior inspection you may get recommendations from them to replace the roof (within a specific time period) ie 30 days). Discuss it with your agent an see if the condition of the roof is likely to cause an issue.

Theresa Harris · Answer

Did the previous owner actually repair the roof? What type of roof is it? If it is asphalt shingles and they are bare or curling, replace them. Why would you want to wait for it to leak before replacing it? If your insurance company sees that there is a problem with shingles and you have a leak, they may not cover you. I just dealt with a burst pipe yesterday (at work) and the amount of damage water can cause isn't worth delaying it if all the roofers are saying replace it now. When you replace it, the big cost is labour, so find out about different options for shingles. As someone else mentioned, your insurance rates should also go down a bit once you tell them the roof was replaced.

Kimball Ostergaard · Answer

We recently replaced a roof on a property in TN and were more at ease with the large expenditure based on something that @Luke Carl said: this is a long term investment for generational wealth. You can be proud that you are making this property something that is more sound and better for you/your tenants.