Recently, we had a question about how we handle maintenance issues on rental houses. Since maintenance is such a huge area of concern for a lot of our property owners, I wanted to tell you what we have in place at Cavalier Estates. We have found it works well for us, for the tenants and of course for our property owners.
We ask the tenants to take care of regular maintenance issues when they’re minor. This is something our tenants are almost always willing to do because they really love the homes they are living in. When we are pricing our rental properties, we are able to find the sweet spot of each price point. Putting the home on the market right at or just below the market value helps us in many ways. First, it rents the property out really quickly. But even more importantly, it gives us a huge pool of applicants from which to choose our tenant. If the tenants who see our properties have done any shopping around, they’ll know they are getting a great value on the house.
Giving the tenant a great property at a price that’s just a bit lower than they would pay elsewhere provides us with the highest quality of tenants. If you do this, you can really be choosey about who you have living in your property. We are also seeing a lot of tenants who have owned homes in the past but are now renting. This means they have done maintenance before, and they’re not afraid of those minor repairs that don’t always require a licensed contractor.
We work this tenant responsibility into our rental agreements. According to the lease, the tenants are always responsible for the first $50 of any maintenance or repair on the house. Since the tenant is responsible for the first $50, they won’t immediately call us with a work order. Instead, they will likely assess the problem, determine what needs to be done and see if they can take care of the problem themselves. For most tenants, it’s worth it to buy a simple $5 part at Home Depot and spend 15 minutes of their time to take care of the problem. When something basic is required, it makes more sense to the tenant to take care of the problem rather than call in the
work order and spend $50. This process helps them to save money and of course it also helps the property owner save money.
This has worked really well for us, and if you’d like more information or you have any questions, please contact us at Cavalier Estates Property Management.