32-37_Maintenance and repairs.indd

DIY landlording can reap big rewards – both ﬁnancially and professionally. But it can also be a source of major stress – especially when it comes to maintenance and repairs. Knowing what to do, when and how can be tricky – especially for investors just starting out or who are managing a handful of properties all on their own.

Eran Rozenblit, owner of Toronto-based Designix Inc., says he sees a lot of problems when landlords try and cut corners on repairs and maintenance.

“A lot of property owners tend to save on bathroom ﬁxtures, toilets and faucets and it ends up costing them more,” says Rozenblit. “What they install ends up leaking or the toilets get clogged because systems aren’t efﬁcient so I do a lot of faucet, sink or drain repairs.”

What you should outsource

He also says he sees a lot of electrical issues because landlords try to improperly repair a problem themselves or do things like install a dishwasher themselves and fail to connect it to code.

Messing around with electrical systems when you’re not properly licensed or skilled is a huge hazard, says Jeff van Kolfschoten, a Barrie, Ont.,-based journeyman and electrician.

“A lot of people think they can just do electrical work,” says van Kolfschoten. “But with electrical work, the problem doesn’t always show up right away. If you replace a sink incorrectly you’ll see drips of water right away but with electrical it can take years. But all of a sudden – boom – you have a ﬁre in the middle of the night.”

have as many receptacles to handle all the “toys” homeowners have these days such as air conditioning, TV and other electronics.

“You’ll see people running extension cords everywhere trying to power everything,” says van Kolfschoten. “But the cord won’t be enough to handle the electrical load so it gets heated up and can cause a fire.

This is why it’s imperative for landlords to have an electrician on hand, as well as a plumber, HVAC specialist, general contractor or handyman, an experienced roofer as well as pest management professionals.

“Each owner or investor has different abilities and expectations in terms of building performance,” says Henry Jansen, president of Criterium-Jansen Engineers. “We recommend leaving structural conditions, plumbing, electrical and HVAC to the professionals.”

Property management pluses

Hiring a property manager to deal with the dirty work also has its beneﬁts. Not only are they responsible

for hiring and overseeing the repairs and renovations but landlords will also gain peace of mind knowing their team of professionals have their own team of professionals on-hand to deal with last-minute emergencies as well as general maintenance.

“Property management companies have people with expertise,” says Laurie Socha, general manager of Winnipeg-based S.A.M. (Management Inc.). “We have everyone from accounting, maintenance and leasing staff so there’s not just one person trying to ﬁt all hats. Our maintenance staff all go for training and learn workplace safety so they have the expertise you’re paying for. We have a lot of resources and people on call, so after hours, you’re not at the mercy of the Yellow Pages.”

Another beneﬁt of property managers is that the tenant simply calls them when they have a problem – which can save the investor a lot of cash.

“If a tenant calls a plumber with something as easy as plunging the toilet or snaking the sink, it can get expensive,” says Socha. “Another beneﬁt of having a property manager is that we trouble-shoot the problem before we hire a professional.”

Immediate service

However, for the DIY investor, deciding on who calls in the pros can depend on the situation at hand and the relationship between the tenant and the landlord.

“Emergency plumbing leak or heating problems should be dealt with immediately,” says Jansen. “If you have a trustworthy tenant and an approved supplier list then the tenant should be able to call if the owner is not available. Otherwise, the owner should be contacted for all other concerns or issues. It is a landlord/tenant requirement in some areas that the tenant be supplied with an emergency contact of a supplier who deals with emergency issues.”

Although most plumbers and HVAC services offer emergency 24-hour response services, Rozenblit says investors should expect to wait a day or two to ﬁx non-emergency matters. In addition, if investors are planning a major renovation, Jansen says one indication of whether or not they hired the right contractor depends on how fast they can get the job done.

“Usually a good indicator of a contractor’s quality is how busy they are,” says Jansen. “If you are planning some major maintenance or renovation on your property, you should plan as far ahead as possible. Most contractors require at least one month’s notice for larger projects, some as much as six months.”

Pay now, save later

These problems might seem small but ignore them and you can end up shelling out big money.

Henry Jansen, president of Criterium-Jansen Engineers, shows us why.

Problem: Leaky bathtub

Result if left unfixed: Water stains developing on ceiling of room below tub; damage to drywall; mould

Cost of ﬁxing it right away: $200 - $300

Cost of ignoring problem: The water leakage can cause structural damage to the underlying wooden ﬂoor joists. With the resulting mould accumulation and structural damage, you will be looking at a $2,000 - $3,000 repair bill.

Problem: Not changing furnace filter

Result if left unfixed: The furnace will become clogged with dust and dirt, reducing the efficiency or the ability of the furnace to heat the space. This increases heating costs and makes the furnace run more often, causing a reduction in life expectancy of the furnace. In severe cases, if left unchecked, the furnace filter can become so clogged that it collapses and stays intact then dust and dirt can build up on the furnace blower causing damage to the blower or, potentially, a fire.

Cost of ﬁxing it right away: $15 to $25 per ﬁlter change with a max of four times a year. Total $60 - $100. Or $300 - $400 to get a service provider to come in and clean furnace and air ducts.

Cost of ignoring problem: $2,500 to $3,000 to replace furnace. If a ﬁre occurs, $10,000 and up to repair damage.

Problem: Water coming into basement from outside

Result if left unﬁxed: Water left unchecked will damage any ﬁnishes and cause mould to develop. If the water is entering the basement through a crack in the foundation wall, the water will eventually deteriorate the wall and enlarge the crack. This can lead to issues with the structural integrity of the foundation wall of the home leading to major structural repairs.

Cost of ﬁxing it right away: If the water is coming in through a crack, it can generally be sealed through an injection process for about $500 to $750.

Cost of ignoring problem: If left untreated and ﬁnishes become destroyed and mould develops, the mould remediation alone would start at $3,500. For a major structural repair to a foundation wall, you could be looking at $5,000 - $10,000, depending on the size of the wall and condition.

Problem: Electrical circuits keep blowing

Result if left unﬁxed: A circuit breaker will trip or a fuse will blow if the circuit is overloaded. If a tenant tries to repair it by increasing the fuse size or by securing the circuit breaker, this will cause the wire to heat up and, ultimately, cause a ﬁre.

Cost of ﬁxing it right away: $200

Cost of ignoring problem: $10,000 and up if it results in major electrical fire.

This article originally appeared in:

Canadian Real Estate

May 2010

www.canadianrealestatemagazine.ca