maintenance issues or rent first?

Question

I just closed a property with a tenant in it. The tenant send us a list of maintenance issues that they want to get repaired. I'm not sure how good or bad this tenant will be. As a new landlord I need your advise, do I need to get her maintenance issues repair first or can I get these items repair after she pay her rent to me first?

Bruce Woodruff · Answer

Don't start letting tenants control the dialogue from the start. Check out what type of tenants they actually are. Then send a good handyman through the unit to develop your own list...I'd bet there are plenty of unnecessary items on her list....

Look at the existing lease and see what your responsibilities are, then draw up your own contract with them.

Frankly I would be turned off if a tenant came up with a list of 'demands' to a new owner....

Joe Splitrock · Answer

The first step is separating that list into "required repairs" and "tenant requested improvements". Generally speaking when buying a property with tenants in place, I will fix anything that is truly broken.

Required repairs are a landlords responsibility and have no connection to rent. You are legally required to maintain essential aspects of the property in good working order. For example, regardless of whether a tenant is paying rent, you need to keep the heat operating in the winter time.

Tenant requested improvements are nice to have, keep the tenant happy and keep them in the property longer. An improvement may be something like paint or carpet.

In general maintaining your properties is important to protect your investment. It is very common to buy a property and find a long list of deferred maintenance and repairs. Tired or lazy landlords have a tendency to let properties fall into disrepair. The result is more difficulty renting the property to quality tenants. Think about it logically. The type of person that is willing to live in a run down property is less likely to care about taking care of the property. More imply put, junk properties attract junk tenants.

Post the list of requested repairs and we can tell you what is urgent versus nice to have.

Greg M. · Answer

If you closed on the property, the tenant has paid you rent. You should have received a pro-rated portion of the monthly rent.

When you fix the issues is up to you. Are they urgent or minor? Will they get worse if not fixed ASAP? Do they rise to the level of the tenant being able to withhold rent?

Unless you are planning on non-renewing the tenant shortly and want to get all repairs done then, I'd probably just get them fixed now.

Brandon Sturgill · Answer

@Tony Zhang the only thing I would add is that after you follow the advice of the folks here and prioritize what is what, weigh whether the tenant requested repairs can be completed for increased rent...$600 in upgrades for $1,200/yr in increased rent is a no brainer...

Evan Polaski · Answer

@Tony Zhang, depending on state law, you may have to make repairs prior to receiving rent.  But notice I stated "receiving", which is different from the tenant being required to pay rent.  In Ohio, if the tenant does not pay their rent, they can be evicted. But if there are life-safety issues, i.e. heat not working in the winter, and they have notified landlord, and landlord has had adequate time to make repairs but chosen not to, the tenant can pay their rent into escrow at the courthouse.  This process proves that tenant is not in violation of the lease for non-payment, and can help force the landlord's hand in making required repairs.

But as noted, you may very well have a tenant that thinks having a new landlord allows them to get things they want, but aren't truly a required repair.

Helen Lowery · Answer

Hello Tony! I consider this two separate topics: 1) what does the property need to make it rent ready? and 2) Is this a tenant I will continue to rent to?

I would schedule a walk through to create your own list of what your property needs in order to ask the maximum rent the market will bear and to protect your investment.  Then, I would start making the repairs, addressing the most urgent matters first.  If the tenant reliably pays rent each month and takes great care of your property... Great!  If not, you can always offer cash for keys, or wait until the lease is up.  Remember to give written notice that the lease will not be automatically renewed (refer to the current lease agreement you have with the tenant).   DO NOT re-list the property or start accepting applications until all the repairs are made and the tenant is completely moved out.  Remember to clearly communicate your screening criteria to prospective tenants and apply the same screening process to each applicant.

Bottom line: Regardless of whether or not you continue to rent to the same tenant, you will want to get the best return on your investment by keeping it in good condition, setting clear screening criteria, and renting at market value.

maintenance issues or rent first?

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