Initial repair and maintenance recommendations
When a property is turned over to us for management, part of what we do is conduct a thorough inventory of the items in the property and their conditions. This inventory includes the conditions of the different parts of the property as observed at the time.
During this process, we sometimes find repair and maintenance items that are appropriate. So in our initial inventory report, we include our recommendations.
Not all of the items we recommend are absolutely necessary for the property to get rented. And the owner is free to either take our recommendations or not.
The following implications, however, do apply depending on the choice of the owner:
- For recommended repairs
If we have recommended repairs and the owner chooses not to do them yet, we cannot take any liability for further deterioration of the property related to those recommended repairs.
When we already have tenants in the property, we likewise cannot hold them accountable for further deterioration due to the same things.
And if damages or injuries to the tenants arise that are related to these repairs that were not done, we cannot take any liability for when the tenants file claims against the lessor/owner.
Prolonged vacancy and/or lower rental rates offered by prospect renters are also likely, and we cannot be held accountable for this. Our marketing efforts can only get prospect renters interested. The actual condition they see when they view the property ultimately has a major impact on the renters’ considerations.
- For recommended maintenance works
While it is true that demand for housing is still increasing in the Philippines, the supply is also keeping up. And in this competitive market, the rental properties that are well-maintained are the ones that command higher rates and have less vacancy.
So if we have recommended maintenance works — such as repaintings, updating of fixtures, and addition of safety equipment/fixtures — and the owner chooses to forego them, we likewise cannot take any responsibility when there is prolonged vacancy or when prospect renters submit offers that are lower than what the owner considers ideal.
It will also be hard for us to hold our tenants accountable for their maintenance responsibilities in the lease contract, if in the first place, the owner himself didn’t have those same things done.