Rental Property Repairs

[John Whitridge]

Hi BP!

I am looking over the Profit & Loss statements for a duplex rental property located in Columbus OH.  In each of the last last two years the owner has spent $30,000 in repairs and maintenance which is significantly cutting into the profit margins but seems to signify that the property has a lot of differed maintenance issues that are finally coming into the light.  

Should I expect this trend to continue in the future? The property is near Ohio State University and rented to students which leads me to believe that a lot of the repairs are going towards tenant damage, is it possible to write certain clauses into the leases that would have the tenants pay for any repairs they willingly caused (i.e. broken doors or windows)? 

[Chris T.]

Hi @John Whitridge

You have to look carefully at the invoices / materials the owner has spend, in order to figure out what they had spend on the property. 

You can definitely put in clauses tenants are responsible for their actions, but making them accountable and collecting it may be a different story. 

e.g. The fire department broke down 1 of my rental's main door / damaging the frame and door. As they had a call stating someone was trying to commit suicide inside. Of course, no one is home, and no one knows who made the call. So I am the one who picked up the tab.