How to charge your time spent on repairs after tenant leaves

Question

Hey fellow landlords!

How do I charge (keep from deposit) the amount of time it took me to complete repairs after the tenant leaves. Here in Denver, Colorado, I have 30 days to return the deposit and I'm coming up on that date. I am planning on sending receipts of the materials, but how do I charge for my time to make the repairs? Or can I even charge for it? I realize now I should have put my hourly rate in my lease up front... lessons learned I suppose.

Thanks in advance!

Wesley W. · Answer

@Frank Chin

I've never understood this.  My time is valueable just as a handyman.  I only have a certain number of "billable hours" in a day.  As a RE investor, some of my profit comes from renting out units.  With that comes field tenant calls, performing maintenance and repairs, showing vacant units, etc.  These "come with the package" and are part of the deal;  I do not get directly compensated for that time investment.

However, when you are repairing something that a tenant broke due to abuse, or cleaning their vacant unit because they did not clean it as stipulated in our signed contract,  That does not make any sense.

From a tax standpoint, that revenue I receive by doing it myself (and charging the tenant for my time) is taxable revenue, so I don't see where it is "double dipping" (which is what I think the courts sometimes claim).

I have so fat avoided this issue by having the tenants sign a "move out charge sheet" that itemizes estimates on damages/repairs made (I apologize for the formatting issues).  Regardless of who does it, I still charge the same amount.  I would love input on the courts' stance to the contrary.

Cleaning

Clean refrigerator

$25.00

Clean stove top

$10.00

Clean oven

$30.00

Clean kitchen cabinets

$30.00

Clean kitchen floor

$25.00

Clean kitchen countertops

$15.00

Clean tub/shower surround

$30.00

Clean sink

$15.00

Clean toilet

$20.00

Clean bathroom cabinets &   floor

$20.00

Window cleaning (per window)

$10.00

Vacuum/sweep through dwelling

$40.00

Flooring

Replace single laminate flooring plank

$30/sq. ft.

(each additional   adjacent plank)

$15/sq. ft.

Replace linoleum/vinyl

$6/sq. ft.

Replace porcelain   tile

$75.00 ea.

Walls

Remove/treat mildew (per surface)

$15.00

Repair hole in wall

$55.00

Repaint (per wall/ceiling)

$40.00

Doors

Replace door (interior)

$165.00

Replace door (exterior)

$485.00

Replace weather   stripping

$25.00

Electrical

Replace light bulb

$3.00

Replace light fixture globe

$20.00

Replace light fixture

$65.00

Replace electrical outlet/switch

$15.00

Replace electrical cover plate

$2.00

Actual charges may vary based on condition, vendor and/or     cost of materials.  In-house costs     for repairs & cleaning are billed at $25/hour  plus materials & supplies.

In signing this document I (we) agree upon and accept     the above charges upon move-out.



Date Executed: _______________                                Date Executed: ________________ 
    Tenant Signature(s):                                                       Landlord     or Property Manager Signature: 
____________________________                               __________________________________
____________________________

Actual charges may vary based on condition, vendor and/or     cost of materials.  In-house costs     for repairs & cleaning are billed at $25/hour  plus materials & supplies.

In signing this document I (we) agree upon and accept     the above charges upon move-out.

Date Executed: _______________                                Date Executed: ________________ 
    Tenant Signature(s):                                                       Landlord     or Property Manager Signature:

____________________________                               __________________________________

____________________________

Plumbing

Replace kitchen faucet

$150.00

Replace bathroom faucet

$105.00

Replace faucet handle

$20.00

Replace faucet aerator

$10.50

Replace shower head

$27.00

Replace toilet

$175.00

Replace   toilet seat

$25.00

Locks

Replace key (door or mailbox)

$10.00

Replace cylindrical door lock

$35.00

Replace deadbolt   lock

$25.00

Windows and Window Coverings

Replace window pane (single)

$75.00

Replace window pane (double)

$125.00

Replace mini   blind

$20.00

Rescreen window screen

$25.00

Replace window screen and frame

$50.00

Miscellaneous

Replace refrigerator shelf

$25.00

Replace stove/oven knob

$20.00

Replace plastic countertop

$275.00

Replace mirror

$45.00

Replace medicine cabinet

$75.00

Replace towel bar

$25.00

Replace shower curtain rod

$25.00

Replace   shower curtain & rings

$13.00

Replace shower/tub enclosure

$350.00

Replace thermostat

$80.00

Replace fire extinguisher

$30.00

Remove junk and debris (per area)

$35.00

Replace smoke detector

$15.00

Replace combo detector/alarm

$40.00

Replace alarm battery (per battery)

$3.00

Replace drop ceiling tile

$10.00

Replace wireless doorbell

$35.00

Replace portable window screen

$10.00

Rev. 2/15/2019

Timmi Ryerson · Answer

I have a clause in my leases that says that I charge $X for my time to arrange for repairs and that I am reimbursed when I do a repair myself for my time if it is tenant caused damage.  If it is wear and tear I do not charge.  I keep receipts and copy them into my billing to the tenant.  I have not had anyone refuse to pay or complain.

Joe Splitrock · Answer

@Connor Riley it is better to hire work done, because it is a third party and you have a receipt. This reduces the likelihood that a landlord is over-charging for the work they do.

That being said, in most parts of the country, you can charge a tenant for your work. Calculating the cost is fairly simple. You charge time and hourly cost that it would have been to hire it done. For example if cleaning companies charge $20 per hour, then your cleaning is billed at $20 per hour. If it takes you two hours to clean and it would have taken a professional one hour, then all you can charge for is one hour. Simple and fair. Some landlords argue "my time is worth $100 per hour", but the point is your time is valued based on what you are doing. If you are cleaning (in this example) your time is only worth $20. That is another reason to hire lower value work done. Spend your time doing more profitable things.

We have tenants sign a document with estimated expenses for different cleaning and repairs. The exact charges may be a little different in the end, but it avoids being surprised when they get a $20 bill for cleaning under a stove or charged $25 for a missing fire extinguisher.

If you are doing the work yourself, keep a detailed time log. Log your start and stop time on every task and keep that in your records. Take a before and after picture. If a judge questions your time, you can show the exact day and time you did the work. You can show a picture so they see it was dirty and you cleaned it. I even go as far as billing tenants down to the minute. People are less likely to question 52 minutes for cleaning a fridge than they are 1 hour. Being precise instead of vague always lends credibility.

Adam Martin · Answer

I don't know how enforceable it is in court however after a tenant left a house without the slightest attempt of cleaning I put on all new contracts that tenant is responsible for the cost of a professional service or $45/hour for any work I have to do.  I don't really know if it is enforceable in court but hope it would be more of a deterrent or something I can take out of the deposit.  I feel my time is valuable and there are a million things I'd rather do than clean or repair a unit after someone leaves because they were too tired to do it after moving and this is most likely cheaper than hiring someone so in my mind we are all winning.  The plan would be to keep a spreadsheet of my time and submit it with the statement on what was taken out of the deposit.

Frank Chin · Answer

@ Wesley W

I think they're leery of landlords making up things. I had a friend who owned a 32 unit property, and he goes around doing minor odds and ends, and books exaggerated bills. One time I was at his apartment located in the apartment complex, we were playing cards, a tenant called on a minor complaint, I recall a door lock didn't work, he went down to take a quick look, it taken care of in 20 minutes. But he has a receipt book which he takes along on these occasions, and wrote up, "lock repair $60.00, and had the tenant sign the receipt". He showed me the receipt and he collected a ton of them in a folder which he keeps and deducts all theses phantom bills for tax reporting purposes. He tells me, locksmiths gets paid, plumbers get paid so why shouldn't he?

I was thinking about it, something doesn't smell right. I know my plumber charges me a minimum of $85 for making a trip to my rental changing a washer, but he actually made the trip. If I ran over to change the washer, the rental is 40 minutes away, make up a receipt for $85 because my time is valuable, would that be right? When I see these court cases, I think of my friend and all his made up bills, and say to myself, guess they have a point.

Then I had triplexes that I drop by monthly to take a look, sweep up sidewalk debris if I see any,  and write up a $150 bill for each inspection?

Theresa Harris · Answer

Usually you can't charge for your time as the landlord.  If you hire someone, you can.  I think the idea is it doesn't cost you anything other than supplies to do the repairs yourself.  Not saying that is right, but that is often how it works out.  You can always try charging them what a cleaning or repair company would charge.

Frank Chin · Answer

@Connor Riley

I've been watching TV court cases, plenty of them involving tenants leaving with damages. Mostly, when landlord does the cleanup themselves, charge hourly or whatever, for doing repairs or cleanup, it's been denied. You can hire a handyman, or get an estimate from one if you have to meet deadlines.

Cleaning
Clean refrigerator	$25.00
Clean stove top	$10.00
Clean oven	$30.00
Clean kitchen cabinets	$30.00
Clean kitchen floor	$25.00
Clean kitchen countertops	$15.00
Clean tub/shower surround	$30.00
Clean sink	$15.00
Clean toilet	$20.00
Clean bathroom cabinets & floor	$20.00
Window cleaning (per window)	$10.00
Vacuum/sweep through dwelling	$40.00


Flooring
Replace single laminate flooring plank	$30/sq. ft.
(each additional adjacent plank)	$15/sq. ft.
Replace linoleum/vinyl	$6/sq. ft.
Replace porcelain tile	$75.00 ea.


Walls
Remove/treat mildew (per surface)	$15.00
Repair hole in wall	$55.00
Repaint (per wall/ceiling)	$40.00

Doors
Replace door (interior)	$165.00
Replace door (exterior)	$485.00
Replace weather stripping	$25.00

Electrical
Replace light bulb	$3.00
Replace light fixture globe	$20.00
Replace light fixture	$65.00
Replace electrical outlet/switch	$15.00
Replace electrical cover plate	$2.00

Plumbing
Replace kitchen faucet	$150.00
Replace bathroom faucet	$105.00
Replace faucet handle	$20.00
Replace faucet aerator	$10.50
Replace shower head	$27.00
Replace toilet	$175.00
Replace toilet seat	$25.00
Locks
Replace key (door or mailbox)	$10.00
Replace cylindrical door lock	$35.00
Replace deadbolt lock	$25.00

Windows and Window Coverings
Replace window pane (single)	$75.00
Replace window pane (double)	$125.00
Replace mini blind	$20.00
Rescreen window screen	$25.00
Replace window screen and frame	$50.00

Miscellaneous
Replace refrigerator shelf	$25.00
Replace stove/oven knob	$20.00
Replace plastic countertop	$275.00
Replace mirror	$45.00
Replace medicine cabinet	$75.00
Replace towel bar	$25.00
Replace shower curtain rod	$25.00
Replace shower curtain & rings	$13.00
Replace shower/tub enclosure	$350.00
Replace thermostat	$80.00
Replace fire extinguisher	$30.00
Remove junk and debris (per area)	$35.00
Replace smoke detector	$15.00
Replace combo detector/alarm	$40.00
Replace alarm battery (per battery)	$3.00
Replace drop ceiling tile	$10.00
Replace wireless doorbell	$35.00
Replace portable window screen	$10.00

How to charge your time spent on repairs after tenant leaves

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