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5 Risks Landlords Face When They Avoid Upkeep
For landlords, maintenance and upkeep of their rental units can be an ongoing challenge. The more units you own, the more you must put into your property from changing the filters to fixing roofs and flooded
basements. But the risks you face for not doing these tasks are even greater than the hassle of managing them. What are some of these risks? Here are a few of the most important risks to consider.
1. Liability for Unsafe Dwellings
First and foremost, a rental unit that deteriorates in condition could eventually open up the landlord to financial and personal liability for not providing a safe dwelling.
Every property owner who rents out a space in Illinois is expected to provide an implied warranty of habitability. This means the dwelling must provide basic necessities of daily living, including operative heating, power, and water services. It includes a roof that keeps out the rain, safe structural elements, safe common areas, appropriate security, and the prevention of pests.
If your units are not maintained sufficiently to keep them within these guidelines, you are open to expensive and time-consuming lawsuits. Tenants can leave without notice and break leases. Additionally, renters may even withhold rent.
2. Higher Tenant Turnover
Tenant turnover - the loss of one tenant, turning over the property, and finding a new renter - is expensive. Some estimates place the average cost at more than $2,800 per dwelling per instance. So, it's in your interest to work to keep good tenants.
Good property maintenance will go a long way toward that goal. A proactive landlord who establishes a maintenance schedule and who checks their units to fix them before the tenant even asks is attractive to good tenants.
3. Bad Word of Mouth
Along with the problem of losing current tenants is the problem of finding new ones. When renters leave due to poor maintenance - or even a property that's not updated aesthetically - word will get around. Today's renters have access to online reviews and forums that didn't exist in the past. Once reviews of your property (or just one of your properties) becomes negative, it's hard to reverse the negative publicity.
4. Deteriorated Asset Value
Your rental properties aren't just sources of monthly income checks. They are also significant long-term investments. Every investor should work to protect the value of their assets. The average single-family house appreciates between 3 to 5 percent per year. Those capital values represent the vast majority of the business and personal assets of most landlords.
However, even a large capital asset will lose value if it's allowed to deteriorate. Some problems could be cosmetic and only affect how well you can negotiate with future buyers. Other problems - like foundation cracks, leaking roofs, and outdated utilities - can cause permanent damage to your property's price tag.
5. Regulatory Agency Intervention
Finally, don't let your property become a magnet for local and state oversight agencies. Many federal and state laws govern landlord responsibilities, and complaints from tenants could result in visits from the Department of Human Rights, building inspectors, and even the state Attorney General. Your landlord business will get unwanted attention and your problems might expand exponentially.
Where to Start
The upkeep of your rental units is a vital part of protecting your business and avoiding personal liability. One of the best resources you have is a professional property maintenance service.
If you could use some help to improve your maintenance routines or make them more efficient and less costly, start by meeting with the maintenance experts at Trend. We will work with you to design a good maintenance schedule for whatever properties you own and to help with any needed repairs. Call today to get started.
Depend on Trend Building Services for your Commercial Painting, Commercial Remodeling, Commercial Cleaning or Commercial Roof Coating needs in Schaumburg, Elk Grove Village, Palatine, Roselle, Itasca, Hoffman Estates, Arlington Heights, Chicago or any Chicago Suburb. Call Trend today to schedule your Free Estimate.
