Ways of keeping your maintenance and repairs cost low?

[Luong98]

I would just like to get some insights to what some of your strategy has been in regards to keeping your repair cost low. I have been doing most of my own maintenance and repairs myself and it has been working fine when I only had a couple of properties but now I`m having a hard time keeping up sometimes.

For some of the members here who has 10-15 properties what are some of your strategies? I don`t see that we have the economy of scale to economically hire a handyman p/t or f/t.

 

[BrianPersaud]

QUOTE (Luong98 @ Feb 4 2010, 04:14 AM) I would just like to get some insights to what some of your strategy has been in regards to keeping your repair cost low. I have been doing most of my own maintenance and repairs myself and it has been working fine when I only had a couple of properties but now I`m having a hard time keeping up sometimes.

For some of the members here who has 10-15 properties what are some of your strategies? I don`t see that we have the economy of scale to economically hire a handyman p/t or f/t.

Have a handy man that you trust that you pay for coming out when you need them, as soon as they get a expensive or too busy, get another one. Until you can get enough rental income to pay one p/t it doesn`t make sense to bring one on as part of your team...unless you have a plan to acquire more for cashflow in a short time period.

I found my tenants actually are great with maintenance if they are capable...they might even look after other properties close by if you ask.

 

[JDaley]

If you own 10-15 properties, surely economies of scale couldn`t be an issue? I bought a property from a gal from Hong-Kong in 2005 and she refused to spend on things even as simple as auguring a basement drain and kept her tenants in the worst conditions imaginable. I think spending a little on handymen services is worthwhile; reasonable maintenance costs hover at about 5% of rent.

 

[invst4profit]

The best way I know of to keep expenses down is to repair everything ASAP. To do this you need to train your tenants to report any issues they have immediately.
Small problems, like water leaks, can become big problems quickly.

The other thing I did was buy all appliances used, less than 5 years old. They have plenty of life left in them. Appliances are like cars as soon as they leave the store there price drops drastically. Stoves and fridges at 3-5 years old can easily be purchased for $200 and last for 10 years or more. Plenty long enough to not be an issue.
Every new tenant moves into a place with used everything so why waste money buying new. If you have a number of properties buy a fridge and stove when you see a great deal and save it for when it is needed.

 

[JohnSoucie]

QUOTE (invst4profit @ Feb 4 2010, 12:52 PM) Every new tenant moves into a place with used everything so why waste money buying new. If you have a number of properties buy a fridge and stove when you see a great deal and save it for when it is needed.

The size of fridge you buy usually depends on the space available in the cupboards. Do you end up just buying an 18.5cu ft, a 22, a 24. Or do you just happen to be lucky enough that all your units use 18.5?

Murphy says that when you buy and store an 18.5, the next fridge to break down will be the 22 cuft

 

[Luong98]

QUOTE (JohnSoucie @ Feb 4 2010, 12:55 PM) The size of fridge you buy usually depends on the space available in the cupboards. Do you end up just buying an 18.5cu ft, a 22, a 24. Or do you just happen to be lucky enough that all your units use 18.5?

Murphy says that when you buy and store an 18.5, the next fridge to break down will be the 22 cuft

From my own experience this is so true.

 

[invst4profit]

QUOTE (John Soucie @ Feb 4 2010, 02:55 PM) The size of fridge you buy usually depends on the space available in the cupboards. Do you end up just buying an 18.5cu ft, a 22, a 24. Or do you just happen to be lucky enough that all your units use 18.5?

Murphy says that when you buy and store an 18.5, the next fridge to break down will be the 22 cuft

An 18.5 will fit nicely into a 22 cuft space.
You are being far too fussy to worry about whether the fridge fits exactly in the space or not.
Remember these are renters not owners nothing has to be perfect.
Heck even home owners don`t always have a fridge that is the exact size of the space available.

Kijiji is inundated with fridges, stoves, washers and dryers all the time.

I look for mid size that fits in the average size space and can usually have a choice of many in any given week..
Renters are happy to have clean appliances that work properly.

 

[jcab256]

QUOTE (invst4profit @ Feb 4 2010, 11:52 AM) Stoves and fridges at 3-5 years old can easily be purchased for $200 and last for 10 years or more.

I totally agree. I would also suggest attending `Scratch and Dent` sales, as you can find some excellent deals.

I just picked up a 18cu ft fridge, smooth top/self cleaning stove, front load washer with matching dryer, and one other Dryer, for $1500 taxes in and delivered.

This price could have easily been under $1k if I had gone with `basic` appliances.

All the pieces are brand new, but had cosmetic damage. I simply chose the pieces where the damage would not be noticable. (on backs, or on sides that would be against a wall)

 

[Luong98]

I`ve had handyman come and go over the years but no one that I can depend on. Who and how should I look for in a reliable handyman?

 

[jwilbrin]

QUOTE (BrianPersaud @ Feb 4 2010, 09:33 AM) I found my tenants actually are great with maintenance if they are capable...they might even look after other properties close by if you ask.

I would really caution anyone who is thinking about allowing their tenants to do maintenance and repair work to your properties. I know people get tired of reading my warnings of liability blah blah blah, sorry it`s a habit -- my background is in safety and risk management so I just naturally immediately see red flags and try to caution people.

Before considering allowing a tenant to perform maintenance and repair tasks please be sure to check with your insurance broker and lawyer to see what things you should be aware of.

1. Will your insurance company cover a flood, fire or injury claim should it occur as a result of faulty work done by the tenant?

Remember, reputable contractors carry liability insurance. So for example, if you have a flood that occurs in your unit that resulted from work done by a plumber, your plumber would be responsible for it and his insurance would kick in. Now lets say your tenant is installing or repairing a faucet and accidently cuts a line causing substantial flooding because he didn`t think it would be necessary to shut the main off for what he considers "a straight forward simple task". The first question you`re insurance company will ask is who did the work and do they have insurance?.

2. Who is legally responsible should the tenant injure themselves while performing a service for you? What if the tenant can not go to work as a result of this injury and they do not have short term or long term disability? Are you now responsible because you had an agreement with them to perform these tasks for you? Do you have to compensate them for lost wages, cover their rent etc.

3. what if you are giving them a rent discount in exchange for rendering maintenance and repair services, will the courts view this as a casual employer/employee situation? Could you be responsible for workers compensation then?

These are just questions to consider and ask the appropriate professionals before proceeding with any arrangements with your tenants.

 

[invst4profit]

Never allow a tenant to do maintenance or work of any kind for you. Generally they are unskilled, make promises they never keep and when they do something you usually have to redo it yourself at twice the cost to fix there incompetence.

Beyond changing light bulbs I would not allow tenants to do anything themselves.

 

[dleischner]

QUOTE (invst4profit @ Feb 4 2010, 10:52 AM) The best way I know of to keep expenses down is to repair everything ASAP. To do this you need to train your tenants to report any issues they have immediately.
Small problems, like water leaks, can become big problems quickly.

The other thing I did was buy all appliances used, less than 5 years old. They have plenty of life left in them. Appliances are like cars as soon as they leave the store there price drops drastically. Stoves and fridges at 3-5 years old can easily be purchased for $200 and last for 10 years or more. Plenty long enough to not be an issue.
Every new tenant moves into a place with used everything so why waste money buying new. If you have a number of properties buy a fridge and stove when you see a great deal and save it for when it is needed.

Sorry to tap into this thread, but I was hoping to get some help from you Greg. I tired PMing you, but it looks like that function is disabled on your end. Would you have some time to answer a couple questions for me?

Thanks

 

[NiagaraInvestor]

QUOTE (invst4profit @ Feb 4 2010, 11:52 AM) The best way I know of to keep expenses down is to repair everything ASAP. To do this you need to train your tenants to report any issues they have immediately.
Small problems, like water leaks, can become big problems quickly.

The other thing I did was buy all appliances used, less than 5 years old. They have plenty of life left in them. Appliances are like cars as soon as they leave the store there price drops drastically. Stoves and fridges at 3-5 years old can easily be purchased for $200 and last for 10 years or more. Plenty long enough to not be an issue.
Every new tenant moves into a place with used everything so why waste money buying new. If you have a number of properties buy a fridge and stove when you see a great deal and save it for when it is needed.




Agreed!  Also when at all possible, try to get it all done while the unit is empty.  Use fairly high quality/durable materials.  IE:  American Standard taps, not Galcier Bay.  The extra $40 is worth it. Make sure you have decent shut offs on everything and teach tenants how to use them.  This saved me once..  Try to use the same stuff in every unit so that taps all take the same cartriges etc.

Standardize everything to make change outs and repairs go faster..

I`m pretty much all switched over to durable vinyl flooring.  That saves on carpet cleaning or replacement.  

Paint with neutral color decent quality paint.  I use Benjamin Moore low voc contractor grade which is not the cheapest nor the most expensive paint with good results.  Don`t let tenants paint as this will slow down your turn around time and fixing of their terrible work.

I get some materials from the Habitat for Humanity Re store.  This can mean more labor/time versus less cost so to each their own..

I have no appliances over 8 years old but have only bought new once from a bankruptcy sale.  You can buy decent used ones from many sources for about $100, they just need cleaning usually.  

If you`re paying utilities make sure your furnace is well maintained so it won`t quit during winter on a Sunday night which leads to expensive service calls.

Good to be on good terms with contractors, HVAC, Appliance, Electrical etc etc to do stuff you can`t.

Make it clear to your tenats that they will be held accountable for damages..




After 7 years in the biz my repair calls and maitenance costs have dropped dramatically.

 

[invst4profit]

QUOTE (fleischner @ Feb 11 2010, 09:26 AM) Sorry to tap into this thread, but I was hoping to get some help from you Greg. I tired PMing you, but it looks like that function is disabled on your end. Would you have some time to answer a couple questions for me?

Thanks

I am not a REIN member so PM is not enabled.
Send me an email, it`s in my profile, but be patient as I do not regularly check it.

Or you could often reach me in the evenings on this site http://www.ontariolandlord.ca/forum/

Post over there if the questions are not personal.