I finally got a tenant to sign a 5-year lease... then the AC died day one

Thought I had the perfect deal locked in for my small office building in Phoenix, but the tenant walked in and the AC was blowing hot air... cost me $4,200 in emergency repairs to keep them happy. How do you guys handle surprise maintenance costs right after signing a new tenant?

2 comments

2 Comments

rodriguez.cora7d ago

Wait, isn't there some unwritten landlord law that says the AC has to break the second a lease is signed or on a holiday weekend? I swear mine always wait for the worst possible moment, like when you're on vacation or have zero cash left. $4,200 is brutal though, that's like a whole month of rent or more depending on your market. I've started putting a small repair fund aside for each property just for these surprises, but it still stings every time.

jamieburns7d ago

Used to think I was being paranoid setting aside money for stuff like this. Then my tenant moved in and the water heater blew up on day two. $2,800 later and I was eating ramen for a month. Now I keep a dedicated savings account for each building, at least two months worth of expenses, just so I don't have to sweat surprises like this when they hit. It's annoying but beats scrambling for cash or borrowing from your personal account.