Maintenance and Repair Records
Landlords are a prime target for liability lawsuits, as you've learned throughout this book. So it makes sense to do as much as you can to reduce the risk of being called to court. In addition to immediately responding to maintenance and repair calls and complaints, inspect your property thoroughly several times a year and keep meticulous records.
A paper trail of property and safety inspections, your response to complaints and requests, and work and service reports will demonstrate that you're doing everything reasonably possible to keep tenants safe and secure and the premises in good order.
Records Start Immediately
Part of your documentation for repairs and maintenance will be kept with your financial records. The cost of materials, supplies, and equipment you use to fix up your apartment can be deducted from your income, so don't throw out any receipts or invoices. Your expense records also show what you did to repair and improve the unit, the entrance, and the exterior of your building.
Maintenance and repair records also include the inspection checklist your tenant filled out at the start of the tenancy. It shows that everything was in satisfactory condition when she moved in. If any problems were noted, it shows that you fixed them right away because your tenant will initial the checklist after the work is completed.
Instead of making duplicates of invoices and receipts that will be filed with other financial records, consider starting a repair and maintenance logbook to cross-reference records. With a logbook you'll know at a glance what you had to do and what it cost to repair it. You'll also be able to find the original invoices quickly.
But since repair and maintenance records also include the results of annual and semiannual checklists and inspections, you'll have a way to predict when an appliance or fixture is likely to need replacing. You'll be able to see when what is typically “normal” wear and tear is getting so bad that you'll have to replace a counter or buy a new carpet.
By regularly inspecting the apartment and having records that substantiate the fact that you are vigilant about upkeep and repairs, neither your tenant nor a court is likely to say that you are a negligent landlord.
Forecasting Repairs
It helps to know in advance when it will be necessary to replace costlier items, such as appliances, a furnace, or a roof. Your records will show what kind of problem you spotted and how frequently you've tried to repair it. You won't have to rely on memory to figure out when the noise first occurred and how loud it was. If you plan ahead and track things carefully from the time you first note the problem, you'll have a chance to save up for the purchase.
Semiannual Safety Checklist
In addition to your biannual inspections, twice a year have your tenant inspect the apartment and premises with a safety and maintenance checklist in hand. If she sees something that might become a problem, it should be written down so that you can inspect it. Keep the checklist in your file and note when you looked at it and what you did. Make a note of any conversations you had with your tenant about the problem.
Things to look for on a semiannual safety-maintenance checkup include signs that the roof is leaking in the house or garage, mildew, locks that stick or are hard to close, and defective smoke detectors. Ask your tenant if there are any problems with fuses or circuit breakers blowing frequently. You want to know if the hot water supply is too hot or a fan doesn't work. Ask if there's any sign of peeling paint, and if there is, get out your paintbrush.
Yearly Inspection
Once a year go into the unit yourself and, using a move-in inventory checklist, look for signs of wear and tear. If you bring photos taken before your tenant moved in and the original signed checklist, you can compare them to what you observe to see if any noted wear and tear has progressed. You'll also have your original notes handy and won't have to rely on memory as you jot things down on the yearly inspection checklist. Also, using a checklist reminds you to check everything.
If a worn rug is now threadbare, you'll want to replace it immediately so it won't become hazardous and cause an accident. If you have a little more time before it needs replacing, remember to check it more frequently, perhaps in a month or so. Be particularly vigilant about safety issues.
How long should I hang onto old records?
Most people say you should keep financial records for seven years in case Uncle Sam wants to audit you. You might be able to toss other files after three years, but if they're not taking up too much space, hang onto them as long as you can. You can't predict when you will need them to prove your case in an audit or in court.
Other things to inspect each year include the screen door, the electrical system, water pressure, and the heating and air conditioning systems. Look at the basement, attic, garage, patio, roof, and exterior of the house. Always check outside locks, smoke detectors in hallways, the stairs, and all handrails. Keep copies of the inspection checklist, your notes, and whether you fixed problems that got worse or whether you decided to monitor the problems for a while longer.
Repair Request Forms
Remind your tenant every once in a while, and certainly during inspections, that you want to keep the building in good repair and that you appreciate being told when something needs to be fixed or could possibly become a hazard. Leave a repair and maintenance request form on the kitchen counter and be sure it includes your home phone and cell phone numbers. Most people put off calling if they have to look up a phone number. You don't want any delays. You want to be notified right away.
