However, we are finding that some landlords are making the decision of undertaking repairs (to save money) that are 'almost' as costly as the replacement.
If a repair is required you need to ask yourself three questions:
- How old is the appliance or item?
- What is the approx. cost to repair?
- What is the approx. cost to replace?
While these may appear to be simple and straight-forward questions, we find that some landlords can have a mindset of 'just repair' thinking that it is going to save money. Example: A dishwasher that is eight years old stops working and has no depreciation or tax saving benefits. The cost to repair has been quoted at approx. $210 and the replacement cost is $500. Once an appliance or item starts to break down it is likely to do so again in the future.
LOSS OF APPLIANCE AND COMPENSATION
We also encounter landlords who state that they do not want to replace the appliance or item, such as an airconditioner or dishwasher that has ceased working. While this is a consideration, you need to be mindful that if the appliance or item was present and working at the start of the tenancy it must be maintained or an agreement reached with the tenant to compensate them for the loss of the item. Owning a property is no different to a car… it must be maintained.
Have you set up a savings account for the unexpected repairs? If the answer is no, than we highly recommend that you look into this type of proactivity. It will alleviate the maintenance stress that comes with owning an investment property.