Making repairs in a rental is simply unavoidable as a landlord. Whether they’re caused by the tenant, normal wear and tear, or just an ageing property, you’re going to have to make some repairs along the way, and things can get expensive. It’s not totally uncommon for landlords and property managers to charge a fee every time a tenant submits a maintenance request or a repair is performed, especially in multi-unit complexes.
The thinking is, if you charge for a maintenance request or require repair deductibles, you can increase your bottom line and ease the strain on your wallet. However, while it may sound like a good way to keep some money in your pocket, this practice will inevitably push tenants out and lead to real problems going unreported. Charging for maintenance requests could lead to overall higher repairs costs and frequent tenant turnover.
What’s a Maintenance Request Fee?
A maintenance request fee is just what it sounds like: a fee charged to the tenants every time they submit a maintenance request that requires you to visit the property, repair something, or have a professional inspect the area that needs attention.
It’s basically like saying, “If I have to get involved, then you’re going to pay for it.”
If you charge one, the fee should be defined and agreed to in the lease and can range anywhere from $25 to $75.
What’s a Maintenance Deductible?
Another way to charge a maintenance request fee, or to simply protect yourself from spending big bucks on repairs is by charging a maintenance deductible, either instead of a maintenance request fee, or in addition to one. This deductible is usually a flat rate or percentage of the total cost of the repair.
While it may seem like a fair term, especially when it comes to big repairs like HVAC or structural projects, you’ll simply de-incentivize your tenants from requesting a repair.
In some cases, landlords put a price threshold on maintenance and repairs. Here’s an example: Let’s say you require a $25 maintenance deductible in your lease, meaning the tenant is responsible for the first $25 of every repair, and 100% of the repair if the cost was less than $25. While $25 doesn’t sound like much, the amount is irrelevant if the tenant shouldn’t be responsible for the repair at all. Many landlords validate this provision by comparing it to an insurance deductible.
Why Do Some Landlords Charge These Fees?
The primary reasons why landlords try to charge such fees is to:
- Offset the cost of repairs or the existing deductible of their home warranty policy
- Force the tenant to have some “skin in the game”
- Encourage the tenants to “only call when it’s important”
Many times, a landlord will have a home warranty policy on their rental property, which covers basic repairs like plumbing and appliance failures. Almost all of these policies have a service call fee, which the landlord is responsible for whenever a claim is made.
The fee is typically collected by the technician that shows up to the property. Because payment is required on-site, some landlords try to pass this along to the tenant who will likely be home to greet the technician.
Maintenance Requests Made Easy
Managing maintenance requests can often feel like a juggling act. You’ve got tenants reaching out, schedules to coordinate, and service professionals to contact. It can get hectic, but Apartments.com has the solution. With our online maintenance platform, tenants can submit maintenance requests online. We notify you when you have a request, and you can easily update your tenants as the repair progresses. You can even attach receipts, upload notes, and track expenses for the repairs. You and your tenants can even share images and videos. Keeping everything in one place makes it easy to keep track of repairs, how often something is requiring repair, and how future repairs might impact your budget.
Why You Shouldn’t Charge Tenant for Maintenance
Maintenance requests are a good thing! It’s never fun to put money into a broken appliance, air conditioner, or anything above a minor fix. But you never want your tenants to think they can’t report an issue to you. Most of the time, your tenants didn’t cause the issue anyway.
Your tenants are your first line of defense since they will be at the property more than you will and if you penalize them for trying to get something fixed, they might take matters into their own hands or just stop communicating all together.
When tenants stop reporting issues to you, small repairs like a slight leak could turn into something more major, like serious water damage. By enforcing a maintenance request fee, you just increase the chances that you’ll have to make a major fix later on since your tenants may not report it.
Maintenance Requests Made Easy
Dealing with maintenance requests can often feel like a juggling act. You’ve got tenants reaching out, schedules to coordinate, and service professionals to contact. It can get hectic, but Apartments.com has the solution. With our online maintenance platform, tenants can submit maintenance requests online. We notify you when you have a request, and you can easily update your tenants as the repair progresses. You can even attach receipts, upload notes, and track expenses for the repairs. You and your tenants can even share images and videos. Keeping everything in one place makes it easy to keep track of repairs, how often something is requiring repair, and how future repairs might impact your budget.
Work With Your Tenants
It may seem like an easy way to increase your bottom line, but it’s unlikely you’ll make enough money from maintenance fees or deductibles to make any serious difference in profit. Though some landlords think there are legitimate reasons for a maintenance fee, it’s just a way to nickel and dime your tenant. The only thing these fees accomplish is preventing your tenant from effectively communicating with you.
Put yourself in your tenants’ shoes. If you got charged every time you had a concern or simply wanted some potential issue looked at and you couldn’t avoid a fee, then why bother reporting any maintenance issues? Many people would simply avoid repairs and move out when the lease is up, forcing the landlord (you) to deal with major fallout while your unit sits vacant.
Why should the tenant pay the landlord’s deductible for repairs that are caused by normal wear and tear? Instead, create an environment of trust and understanding, so that when a serious issue does arise, your tenants feel like they can rely on you. After all, your job is to make sure that person has a comfortable living environment. So, trust your tenants, and they’ll trust you back!
