Genie Property Management? 3 Thoughts to Determine Viable Tenant Repair Requests

“Honey, before you go out golfing today, there are a few things I’d like you to take care of around the house.  The air conditioning is out upstairs, the front door squeaks, the gutters needs to be cleaned, the back latch is sticking, the front bushes need to be trimmed…”

(Cutting his wife off while rushing out the door) “Can’t you just put it in an e-mail and send it to the landlord?  I assume that’s why we pay rent around here!?!?  That nonsensical interruption may have just cost me a few practices hits with my new driver!”

I wish things worked for me like that.  Something in my house breaks?  Send an e-mail to the landlord and wait for the repairs to be addressed at no cost.  And now that there is Wi-Fi on the golf course and the pool, this whole delegating thing would be even easier!  Renting would really trump owning, that’s for sure.

I refer to this as “genie property management.”  Get the lamp out, rub it a few times, and get countless free repair requests.

But much like a genie, this is (or should be) fiction.  Landlords are not genies.  With that being said, my three thoughts to determine viable tenant repair requests are:

1.  The landlord needs to keep the house at code.  The major systems that worked (including appliances) should continue to work throughout the tenancy.  That’s written into most leases to protect the tenant.  Stay on the right side of the law!  Plus, it’s the right thing to do.

2.  Myth: When renting a home, a tenant will never have to pay anything outside of rent and utilities for the house.  That is very false.  This expectation should be expressed explicitly during the lease signing.  Both parties have responsibilities to each other.  As it has been said, it takes two to tango.

3.  A good maintenance addendum to the lease is paramount to ward off even the scent of genie property management.  Tenant repair and maintenance responsibilities should be spelled out explicitly so everyone is on the same page.

So that brings up the inevitable question: so (ha ha ha), you’re a proponent of “slumlord management”, are ye?  Hardly!  When tenants move into a home, every major system should work!  If there was ever an expectation that something major wasn’t going to work, the tenant should know about it before signing the lease.  And if one of the major systems breaks due to normal wear and tear during the lease, landlords should address it at their expense immediately.  I would want that done for me if I was renting.

But what I’m not a proponent of is “slumlord tenancy” (ha ha ha?).  Houses are expensive and need to be maintained.  If a home inspection uncovers that the air filters have never been changed, the yard is unkempt, leaves are spilling out of the gutters, all light bulbs are burned out, etc. this is an issue!  These are not landlord responsibilities.  On-time rent is great (thanks!) but it doesn’t give a tenant license to ignore the other responsibilities in the lease and maintenance addendum.  And if something breaks due to misuse (pouring hot oil down the garbage disposal, anyone?), I don’t think it is fair to expect the landlord to pay for it.  That’s not normal wear and tear and it seems unreasonable for the responsible party to expect the landlord to pay the bill for that. 

Yes, if I was renting, I would wish my landlord was a genie!  But having Santa around to bring my family gifts in December each year would be a nice thing too. 

Alas, all is not lost.  It still can feel like Christmas year round.  When each party does their part, the house stays maintained, things work well, and the Christmas spirit will abound for all!

BTW, the e-mail response to the tenants from their repair request:

Dear Valued Tenant,

Thank you for your e-mail sharing your repair issues.  I’m sorry to hear about them.  See my notes below:

1.  The AC upstairs- we will send someone out to fix it ASAP.  Can the technician call you on the 5641 phone number we have on file?

2.  The front and back door: please try some WD-40 and spray the locks.  That usually does the trick!

3.  The clogged gutters and front bushes: per the maintenance addendum signed with the lease, this is a tenant responsibility.  Can you make sure they are taken care of ASAP?  If you could e-mail us a few pictures after they are done, that would be great.  The owner appreciates you taking care of the home and we need to make sure we are no one is fined by the HOA for non-compliance.

Thanks & have a great weekend!

    

Brett Furniss is the head property manager of BDF Realty (Charlotte Residential Property Management), the trusted real estate advisor for Charlotte landlords & Home of $100 Flat Fee Property Management.   BDF Realty utilizes their innovative Pod System for exceptional customer service in residential property management, home repairs, and home sales for single-family homes, condos, and town homes in the Charlotte-Metro Area.  Contact Us Today!

Sometimes It’s Cheaper to Keep Her: Why You First Need Reserve Funds Before Renting Out Your Home

 

 



You tied up, you better stay tied up
Cause it's cheaper to keep her, this is from T, who says
It's cheaper to keep her, it's cheaper to keep her

When your little girl makes you mad
And you get an attitude and pack your bags
Five little children that you're leavin' behind
Son, you're gonna pay some alimony or do some time

That's why it's cheaper to keep her (Help me say it, y'all)
It's cheaper to keep her (It's cheaper to keep her)

 

(“Cheaper to Keep Her” by Johnnie Taylor)

 

Marriage can be the best thing in the world.

 

Marriage can be the worst thing in the world.

 

But breaking up is really hard on several fronts and is certainly never cheap.

 

Much like a bad marriage, we get calls from potential clients who want to break up with the houses they live in and rent them out to someone else:

 

“I’ve lived here for 20 years!  It’s just time to move.  And the hour commute each way to my new job is killing me!”

 

“This neighborhood has been going downhill for a long time.  It’s time to get around a better class of folk.  I’ll rent it until I can afford to sell it.”

 

“Things are breaking everyday in my house.  Mentally, I feel like I may be next if I don’t relocate.”

 

And as a Charlotte property manager, we like it when people want to move.  It keeps our doors open!

 

However, there is a difference between good and bad property management business.  Good property management business makes potential clients aware that renting out their home costs money and that they should have access to a reserve fund (2-3 months of rent at least).  Renting out a home can be costly upfront and things can get worse if things go wrong during the tenancy. 

 

Wait- I thought investing in real estate makes people millionaires!  I’m supposed to make money, not lose it.  What costs money?  And what can go wrong?  Here’s a very partial list:

 

1.  Preparing the home for market (steam clean carpet & a professional cleaning at minimum)

2.  Vacancy costs (utilities, HOA fees, monthly mortgage, lawn service)

3.  Property management fees (Sorry!  But well worth it! J)

4.  Things break (HVAC goes down, garage door breaks, etc.)

5.  Tenant stops paying and eviction is necessary

 

A good property manager will keep these costs to a minimum, but is never able to eliminate them entirely.

 

We sometimes get inquiries where there is an impression that as soon as there is a move-out there will be incoming rent covering the entire next month’s mortgage.  That is never the case.  And we don’t want to take business that puts our clients in untenable, stressful situations.

 

Don’t get me wrong; we’d love to rent out your house for you.  But change comes at a cost!  If there are not reserve funds available, as Mr. Taylor eloquently says, it is just cheaper to keep her. 

 

Holding rental homes can be a great path to long term wealth, but can drain liquid resources (especially in the short term).  If you want to break up, first make sure you are financially able to pull it off!   

 

Brett Furniss is the President & Owner of BDF Realty (Charlotte Residential Property Management), the trusted real estate advisor for Charlotte landlords & Home of $100 Flat Fee Property Management.   BDF Realty utilizes their innovative Pod System for exceptional customer service in residential property management, home repairs, and home sales for single-family homes, condos, and town homes in the Charlotte-Metro Area.  Contact Us Today!