Guide to rental property repairs and maintenance

Handling rental property repairs & maintenance (responsibilities, tax, and more)

Tenants must report maintenance issues promptly to avoid costly repairs and potential legal consequences. Landlords are responsible for general maintenance, but tenants can be held liable for damages caused by negligence. Some repairs may be tax deductible for landlords. Property Brokers provides a structured approach to managing repairs efficiently.

Proactive management of rental property repairs and maintenance is essential for landlords. Here’s what you need to know:

• Tenants must report maintenance issues promptly to avoid costly repairs and potential legal consequences. 
• Landlords are responsible for general maintenance, but tenants can be held liable for damages caused by negligence. 
• Some repairs may be tax deductible for landlords. 

At Property Brokers, we provide responsive, cost-effective solutions that keep your property and tenant relationships in optimal condition while saving you maintenance headaches. 

Keep reading to learn more about your responsibilities as a landlord, or reach out to start working with your local property manager.

Answering your questions about rental property maintenance and repairs

Who is responsible for maintenance and repairs in a rental property?

In New Zealand, rental property maintenance responsibilities are clearly defined under the Residential Tenancies Act. Landlords are responsible for ensuring the property is in a reasonable state of repair, considering its age and condition. However, tenants must report any damage or maintenance issues as soon as they arise.

Failure to report problems can result in costly repairs. For example, a minor leak under a sink can quickly escalate into severe water damage if left unattended. If a tenant notices the issue but does not report it, they may be held financially responsible for a portion of the repair costs.

Key responsibilities:

• Landlords: General maintenance, weatherproofing, and repairs due to wear and tear.
• Tenants: Reporting maintenance issues and covering costs for damage caused by negligence.

For more details, visit our Property Management and Maintenance Checklist.

Can I claim repairs and maintenance for my rental property as an expense?

Yes, rental property repairs and maintenance costs can often be claimed as tax-deductible expenses. However, the distinction between repairs and capital improvements is crucial.

• Repairs and maintenance (e.g., fixing a leaking tap or repainting a damaged wall) can typically be deducted as expenses in the year they occur.
• Capital improvements (e.g., replacing an entire bathroom or upgrading flooring) are considered investments and must be depreciated over time.

Property Brokers advises landlords to keep thorough records of all maintenance expenses to simplify tax reporting.

What should I do if the tenant damages the property?

If a tenant damages the property beyond normal wear and tear, the Tenancy Tribunal may hold them liable for the cost of repairs. Examples of tenant-caused damage include:

• Unreported water leaks causing mould or flooring damage
• Broken windows or holes in walls
• Pet-related damage

Steps to take:

1. Assess the damage and determine if it exceeds normal wear and tear.
2. Request the tenant to pay for repairs or use their insurance if applicable.
3. Lodge a claim with the Tenancy Tribunal if the tenant refuses to take responsibility.

Does landlord insurance cover tenant damage?

Landlord insurance can cover damage caused by tenants, but it varies depending on the policy. Common inclusions are:

• Accidental damage
• Malicious damage
• Loss of rent due to extensive repairs

However, landlord insurance does not cover a tenant’s personal belongings or damages caused by negligence. This is why we recommend that tenants get contents insurance to protect themselves financially.

For more guidance, see our Property Owner’s Guide.

How Property Brokers handles repairs and maintenance at your rental property

Our approach to maintenance and repairs

At Property Brokers, we streamline the rental property maintenance process by:

• Ensuring clear reporting systems for tenants to notify issues promptly
• Conducting regular inspections to identify maintenance needs early
• Maintaining detailed records of all communications and repairs
• Having a trusted network of service providers to ensure quality repairs
• Advising tenants on the importance of contents insurance

Maintain property value and tenant relationships with Property Brokers

A well-maintained property benefits both landlords and tenants. By encouraging proactive communication and efficient maintenance, we help protect your investment and ensure a positive rental experience.

For professional property management that takes the stress out of repairs and maintenance, learn more here.

Want to know more about Property Brokers' superior property management service? Check out our FREE guide or get a rental property appraisal today!