You bought a rental property to build wealth, not to become an on-call repair technician. We get it. But here's the thing a lot of new landlords discover the hard way — the maintenance side of owning a rental is where most of the legal and financial risk lives.
Most owners find out about all of the maintenance requirements for their rental property the hard way. There are many owners that we work with who are shocked at all of the items that the Virginia law requires. Not because they are horrible owners, but because no one ever told them. Many owners are not aware of the requirements for repairs and maintenance until they receive a repair request from a tenant, a huge bill for repairs that they were not expecting, a notice of deficiency from code enforcement or even a lawsuit from a tenant.
Whether you own a single house or a large apartment complex in the Richmond area, the following will explain in detail what you are required to repair and maintain in your rental property. The purpose of the article is to educate the rental property owner as to the vast majority of problems that arise in rental property maintenance involve financial risk and potential legal problems for the landlord. In our experience, the majority of landlords who contact us regarding maintenance problems did nothing wrong. They simply were not aware of their responsibilities as a landlord and therefore took no action until a problem became serious and costly to repair. We hope that the following information will enable you to avoid such problems before they occur.
What Virginia Law Actually Requires
Virginia Residential Landlord and Tenant Act The primary legislation that deals with most residential rentals in Richmond and the surrounding Henrico, Chesterfield and Hanover counties is the Virginia Residential Landlord and Tenant Act. It lays out the landlord's required repairs in fairly clear language. Most important, are the requirements for heat, plumbing, electrical systems, including electrical and the structural integrity of the building. In other words, all of the critical systems must work, always. That is to say, if there is a failure in any of the systems, including repairs due to lack of maintenance, they must be repaired immediately. Most important, a landlord's maintenance responsibilities are not abated by a tenant's failure to pay rent.
Landlords are required to maintain functioning heat, plumbing, electrical systems, and structural integrity. Always. Full stop. That obligation doesn't change based on what your lease says, and it doesn't pause because a tenant hasn't paid rent. Courts have been consistent on this.
Here's an example of repairs needed to maintain a rental's habitability: heater, plumbing, electrical, structural repairs (repairing leaky roof, walls, etc.). The potential cost of repairs can vary and usually starts around $500 to repair leaky toilet and goes up from there. If a tenant notes needed repairs in writing and you fail to make said repairs within 14 days of receiving written notice by tenant then that can become basis for tenant to start collection of rent into escrow or even to cancel rental agreement in accordance with terms of Virginia Residential Landlord and Tenant Act.
Ignore that window, and the situation gets expensive fast.
The 14-Day Clock Is Real
After a tenant documents their repair request in writing, the 14-day clock begins to count down. If you fail to meet the repair request within the 14 days, the tenant can start to withhold rent, pursue a rent escrow hearing, or even attempt to terminate the lease. We have seen too many cases where a landlord's attempt to save a buck on repairs has cost them so much more in the long run.
Not surprisingly, repairs can get expensive fast and owners have reported paying upwards of $8,000 to defend lawsuits to ensure the habitability of a rental property. An owner that we now work with for several properties was having issues with maintenance backlog-related complaints to code enforcement when we began to assist with the management of several of his properties. Some quick coordinated plumbing and HVAC repair work got a two story townhouse back into 100% compliance within 30 days of our beginning to provide the property management services for the property.
The repair itself wasn't the expensive part. The delay was.
The Tenant Caused It — But You Still Have to Fix It
This one trips up a lot of owners. And we understand the frustration.
You find out a tenant left windows open during a rainstorm, failed to change HVAC filters for a year, or didn't report a slow drip under the sink. Now there's water damage or a mold issue. Your first instinct is probably, "That's their problem."
This can be a very frustrating issue for landlords, especially because tenants can cause problems through no fault of the landlord's. However, even if the tenant causes damage or creates a problem, the landlord is still required to make repairs in order to ensure that the property remains habitable. As stated above, after making repairs, the landlord can attempt to recover the costs of the repairs from the tenant. However, this can be a time-consuming and expensive process. Many times, it is cheaper for the landlord to make the repairs and attempt to recover costs from the tenant rather than to allow the tenant to withhold rent and for the landlord to defend a lawsuit in order to attempt to recover lost rent.
Fix the problem first, then try to get the tenant to reimburse you for it.
HVAC Maintenance is Not an Option, it's Insurance
HVAC units are pushed to extremes in Richmond's hot, humid summers and older housing stock and cold, occasionally frosty winters. This kind of use stresses systems and, when they are not properly serviced, causes them to fail at the worst possible time for a landlord.
Maintenance performed on HVAC systems by a contractor can cost anywhere from $150.00 to $400.00 for a routine service call. Repairs to HVAC systems fail at the worst possible time, such as in the middle of summer when it is hot outside. Replacing a failed air handler in the middle of a lease can cost as much as $3,000.00 to $5,000.00 or more. Recently, we worked with a Chesterfield Townhome owner who was attempting to manage his properties as a long distance landlord. He stated that he maintained the properties and didn't need a property manager. He had not done any maintenance on the HVAC in years. Shortly after we took over management of the property, the HVAC failed. An emergency replacement cost the owner over $4,200.00. Had he spent $175.00 a year in maintenance, the problem could have been prevented.
Preventive maintenance isn't an expense. It's insurance.
What About the "Green Stuff"?
The Greater Richmond area has hot, humid summers and older housing stock in neighborhoods like Church Hill, Lakeside, and Bon Air. That combination creates real mold and moisture pressure that owners in drier climates simply don't deal with the same way.
A slow leak of water under a bathroom vanity could lead to several months of water damage before discovered. The repair to the subfloor could be in the order of $1,800 to $2,500 for wood rot to be repaired. On the other end of the spectrum, moisture can cause mold to grow. For severe mold situations, engaging an industrial hygienist that specializes in mold and other bio-hazards affecting homes in Central Virginia can save owners from thousands of dollars in cost if treated early.
So pest control will most likely be an annual expense to eliminate termites, rodents and other critters that we like to try to avoid in older homes, within our urban neighborhoods. These species of pests are easily controllable via scheduled applications throughout the year to guarantee that your home remains free of these unwanted invaders. Also lease language will be important here, so that there are not disputes of who is responsible for any damage when a pest problem has arisen in your home.
Documentation Is Half the Battle
You can fix to prevent problems, but problems will still occur. And then you have to document everything in order to try to collect any reimbursement when the problem occurs.
This same owner had a handyman do repairs to his property for a number of years. Unfortunately, he never kept any documentation of the work that was completed. As a result, he had a problem when a tenant moved out of one of his rental properties and the tenant denied responsibility for damage to the property. Since there were no inspection reports, no photos, no log notes or records of the work that was completed and no evidence of when the work was completed, he had no proof of the damage and therefore could not withhold any of the tenant's security deposit. Ultimately, he had to return the entire deposit and was unable to collect for any of the damages for which the tenant was responsible.
Our process of twice a year property inspections for all properties in our portfolio utilize an on-line inspection tool. This service supplies a series of photos that have been timestamped and are attached to each individual property. We utilize this tool to insure that we have created documentation that will be required in the event of a dispute regarding issues of maintenance at move-out. A case in point is the following review written by an out-of-state owner regarding one of his properties that is managed by PMI James River. In this review, he noted that an inspection had discovered a slow leak of water from a sink in a bathroom. This leak had the potential to cause a large amount of damage to the sub floor of the townhouse prior to being discovered. Fortunately, the leak was discovered prior to any such damage having occurred, and repair of the leak was completed prior to any potential damage having occurred. The fact that documentation of the potential problem had been created, prior to any repairs having been made, and prior to any potential damage having occurred, is key to our process of creating documentation regarding the maintenance of a property that will protect the owner in the event of a dispute.
Tenant Managed Repairs
We have found that many Richmond landlords attempt to do repairs through Tenant managed small repairs (TMSR) or negotiate a reduction in rent in lieu of the owner handling repairs that may only cost $50-$75. These arrangements seem to make sense for the Landlord as they appear to save money on repairs. However, in reality, these methods for handling maintenance have many more potential problems than good.
It's common to see maintenance and repairs handled by a tenant under terms of their lease and owners saving several hundred dollars of rent per year. However, most repairs can go wrong and, because work was performed by an unlicensed person, can result in further damage for which the owner is responsible and for which there is no proof of work performed, no warranty, and no licensed contractor to follow up with to resolve any outstanding issues. For these reasons, repair work is typically best to contract out with a licensed vendor who coordinates the work and charges more upfront for repair work that is completed and done correctly the first time.
Managed Portfolio vs. Self-Managing!
On average our team would respond to maintenance within 2 to 3 hours during normal business hours. However, if there is an after hour maintenance request, it is handled immediately by our 24/7 hotline.
Owners can have full access to view their respective property's maintenance requests as well as their current financial situation via a password-protected online login.
FAQ
What repairs are landlords legally required to make in Virginia?
A landlord is responsible for repair of and maintenance of the heat, plumbing, electrical and structural systems of his rental property, regardless of the terms of the lease. A written notice to the landlord of needed repair must be given and the landlord must begin repair within 14 days of receipt of notice. If not, the tenant may pursue application for a rent escrow or file suit to terminate his lease.
How long does a landlord in Virginia have to return a security deposit?
Under the Virginia Residential Landlord and Tenant Act, the landlord must return a full security deposit within 21 days of the tenant's move-out date. If the landlord fails to return the deposit in the required timeframe, or fails to document his or her assessment of any damages and resulting deductions, he or she will lose the right to any of the deposit.
Can the tenant's neglect of maintenance cause the same problems for which the landlord is responsible for repair under the Act?
Contributory negligence on the part of the tenant does not relieve the landlord of their obligations to maintain a rental property in habitable condition. However, the landlord may attempt to collect any repair costs from the tenant, but this would be after the repairs have been completed and the rental property returned to a habitable condition.
Is mold a landlord's responsibility in Virginia rentals?
Mold from a structural or moisture issue is typically the landlord's responsibility to repair as it is part of maintaining a habitable home. In the Greater Richmond area where humidity and older homes are typical, issues with water intrusion can create serious problems very quickly. It is best to address water issues early before they create more serious problems and cost much more to fix.
How often should a rental property be inspected?
Our inspection tool for rental property management is used for scheduled bi-annual inspections of all properties leased. The walks through are completed by our staff and take no more time than a typical walk through. Documentation of interior and exterior photos are taken and time-stamped, during each inspection. These can serve as excellent proof of a property's condition in the event of disputes or for documentation of damage for which tenant(s) are responsible.
Can a tenant withhold rent in Virginia if repairs aren't made?
Virginia tenants have many protections under the law and, according to local real estate owners, can use lease provisions to withhold payments of rent for repairs deemed to be a part of a landlord's obligations to provide a safe and clean rental property. We have encountered local landlords who's tenants have begun to withhold portion of their rent as the owners have been blindsided and which could potentially cause financial hardship for the owners. As a preventative measure, documenting all repairs received for consideration, performing regular inspections, and responding promptly to all maintenance repairs are the best ways to ensure you can continue to collect full rent from your tenants.
