Talking to investors about fair wear & tear

Talking to investors about fair wear & tear

Do your landlords ever question you when you tell them that the law requires them to make an allowance for fair wear and tear in their property? In our experience, many landlords don’t fully understand what is deemed ‘fair wear and tear’ and why they should make any allowances for tenants. It’s up to you to keep them informed and protect them against the domino effect when maintenance issues stack up.

As a property manager you must ensure your landlords understand that making an allowance for fair wear and tear is not an excuse to let tenants get away with damaging their property. But the reality is, the older a property and the less it is maintained over time, the more it will be subjected to natural wear and tear.

A reasonable amount of wear and tear is to be expected in any home, especially to things like floor coverings, walls, doors and window furnishings. However many landlords become complacent about maintaining their property. This complacency can lead to a domino effect whereby the wear and tear becomes exponentially worse as time goes by. The more wear and tear, the harder it will be to attract good, house-proud tenants who are prepared to pay well for a quality home.

Educate your landlords that it is much easier (and more cost effective) to keep a well-maintained property in good condition than it is to maintain one that is poorly maintained. The general rule of thumb is that a rental property should have minor refurbishments completed every seven to ten years: things like a fresh coat of paint, new floor coverings, new window furnishings and updated appliances.

Advise landlords to set aside some funds for maintenance each year and remind them that money spent on maintaining and repairing their investment property is tax deductible. It will also tick the boxes to improve their ongoing income and long-term capital gain prospects.

Contact us if you would like a free demonstration of Maintenance Manager, our simple-to-use risk mitigation and property maintenance system. The system is ideal for property managers as it automatically issues reminders and relevant correspondence to your landlords, tenants and trade suppliers, all at no cost to you. This will make staying on top of maintenance a breeze.

**Maintenance Manager is not a financial advisor and we recommend that you speak with an accountant for advice relating to specific circumstances**

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