Don't Be Penny Wise and Pound Foolish
We’ve seen it often, a tenant submits a repair request and it is easier to make the quick fix rather than the correct fix. Trying to save money by skipping the correct fix will almost always cost significantly more. If it costs $500 to make a repair, what does it cost to not make the repair? What does it cost you if you spend only $100 to make the repair? There are many examples, but plumbing related issues are common and often the ones that are ignored. You know the situation. The tenant calls because their drain is leaking and you go to fix it to find that it requires you pull the vanity off the wall, break open the wall, make the repair and put it all back together. Because it’s difficult, you make the Band-Aid repair knowing the leak will return - praying that it will not. So what happens? It continues to leak, it begins to leak into the apartment below. You begin to find roaches (as a result of the constant water in the wall. The problem has become a lot bigger.
Spending the $500, up front, may feel like a lot of money, but when you take the cheap approach, you end up coming back again and again. As a result, you end up spending more than the initial $500. But the real cost ends up much higher. What is the cost of the tenant calling you multiple times? What is the cost to repair the additional damage? What is the cost of the lost goodwill with the tenant? What is the cost of a bad Google review? What is the cost of the lost referral (that you never know of)?
Property Management is a service business. You certainly need to manage expenses and make decisions where and when to make investments. In an effort to save time and money (and frankly sometimes just being lazy), the BandAid approach is often taken. Don’t allow yourself to fall into this trap. In the example above, spending the $500 up front will save you from getting called back and it will likely save you from the additional issues that cost even more. Fixing it correctly can save you from seeing the issue reoccur for many years to come. Fixing it correctly will free you and can position you to have a resident give you a great review - generating referrals and more income for you and your property.
Drexel Properties takes the approach of pleasing our residents every day. As a result, we received many referrals that help keep our properties fully occupied with the best tenants. Feel free to reach out to us for a consultation to find out how Drexel can help you maximize your return on your multifamily property.
