One of the important decisions that every small landlord needs to make is whether they will do their own repairs or whether they will contract it out to a handyman or other trade professionals. There a number of reasons that this decision becomes important. Here are some things to consider:

First, your time has a value. Do you have enough time (and knowledge) to do the repairs yourself? Is it more effective for you to utilize a handyman instead and spend your time on other things (your primary job, searching for other properties, your personal life and family, etc.)

Second, repairs cost money. If you are “handy with a hammer” and can do your own repairs, how much money will it save you? It is important to know your skills and limitations. For example, in the beginning I did a lot of repairs and improvements myself– repainting rooms, fixing faucets, replacing toilets, etc. What I found over time, however, was that in a majority of cases I was wasting time by not hiring a contractor. Time IS money. The time I was wasting was resulting in it taking longer for me to get a unit back on the market, or required me to take too much time away from my primary business. On the other hand, I know landlords who have been in business long enough to have paid off most of their properties. Landlording is their PRIMARY job. For them, taking a day to paint a vacant unit is what they do. It saves them money and is part of the time they spend in their primary job in managing their properties.

Third, repairs and maintenance are liability issues. Think you can fix that electrical box? Ready to install that second floor deck? Ok, maybe you have the knowledge. Make sure you also get the right permits and inspections. However, if you are not skilled and knowledgeable in these areas, you might want to strongly consider hiring a licensed contractor. If the house burns down from an improperly wired electrical box, or the deck collapses… from a legal standpoint I’d certainly like to be able to show that these things were installed by a licensed contractor with any required permits. I don’t know how well it would sit with the courts or insurance company if, instead, you told them you were just trying to save a few bucks and thought you could do the repair yourself. On the other hand, if you have a couple hours and have to replace/repair a sink faucet or paint a front door, the potential liability issues are probably not a real big concern.

If you are a landlord, what do you do and why? How do time, cash flow and liability issues affect your maintenance and repair decisions?

Steven A Boorstein
Landlord & Author
How To Buy Your First Rental Property and Beyond
ManageRentalProperty.com