5 Types of Property Maintenance

Add a Comment Here Topics: Property Management, Real Estate Investing

Photo | Property Management Contract and Rates So you want to learn about property management and maintenance?

Here’s a look at the 5 different ways to maintain a property.

A lot of people may think maintenance is just about fixing broken things and that’s it.

But there’s really more to it than that.

You can generally divide maintenance into a few categories: urgent, prevention, improvement, postpone.

Urgent means, “We have to do this repair – NOW!”. Prevention means, “Let’s keep this maintained well to prevent any catastrophic problems down the road and keep this real estate investment of ours running top notch.” Improvement means, “Let’s make some great additions to our real estate investment property to keep our tenants happy and rents up!” Postpone means, “I’m not going to do it so forget about it!”

What follows is a listing of the five types of property management maintenance that you as a landlord will encounter (or if you’re tenant, these are the ones your landlord and property manager takes care of).

Corrective Maintenance – These are actual repairs that keep the property functioning normally and are often urgent. They are usually done as repairs to the building structure and equipment following a breakdown. They are done to keep the equipment, utilities, and amenities functioning as they should according to the property maintenance contract and agreement kept with the building tenants. If you’re a landlord, the type of maintenance you would do that falls under the corrective category includes replacing a broken air conditioning unit, fixing a leaky faucet, or replacing a replacing a non-functioning toilet.

Preventative Maintenance - This maintenance is focused on preserving the physical integrity of the premises. Also done to eliminate corrective maintenance costs. These are regular maintenance activities and routine inspections that as a landlord you would do so you can find out important structural and mechanical problems with your buildings functions so you can prevent costly repairs in the future. It’s always better to fix problems when they’re still small and preventable!

Routine Maintenance – This is the most frequently done activity of all. As a landlord or property manager, you’re going to want to have the common areas of your building cleaned and maintained well by doing a routine maintenance of your residential or commercial property. Security patrolling the common areas is also important if provided in the landlord/tenant contract. If you’re a landlord remember to keep accounts of how much you’re spending on housekeeping chores and monthly cleaning expenses because they can really add up!

New Construction Maintenance – This is one, that if you’re a landlord and you manage this step properly, will result in more money in your pocket! New construction maintenance involves improving your property to improve the earning and income creating potential of your real estate investment. This is obviously linking with the relationship you have with tenants because if you improve your property, your tenants are definitely going to be happy! On a basic level this can include new light fixtures, carpeting, tiles, paint, wallpaper, and doors. On a more extensive level, this can include a new pool, the addition of a meeting room or lobby, or a renovation of an already existing space. Although new construction is often done at a tenant’s request and expense, many landlords redecorate or improve a living space as a condition of tenant contract renewal.

Deferred Maintenance – This is the maintenance that isn’t really maintenance at all! These are the repairs and improvements that should be done, but either cannot or won’t be done! This will give you three results: reduced rent collection, physical deterioration of your property, and unhappy tenants. Not a good combo!

After reading this list, it should be obvious that you want to avoid deferred maintenance as much as possible! Of course, sometimes it’s necessary to postpone and intentionally procrastinate on non-essential repairs that should be made – but always make sure these deferrals are temporary. If these necessary repairs are not done promptly, there will be repercussions from your current and potential tenants.

As a property manager, remember your number one duty is to serve the goals of the owner of your property – if you own the property then you’re number one! Although emotions may come into play when a tenant pleads with you for a certain amenity, you should always remember that you need to put yourself and the property owner first in your mind and actions. What’s great is that the tenant’s needs and the property owner’s goals are usually aligned! If the property is maintained well and efficiently, tenants are content and happy with the condition of the building, then the owner’s bottom line profits are usually going well also and income is great!

Michael Emilio

Real Estate and Small Business Blog