The Business Case for Maintenance: Why Landlords Must Prioritise Asset Upkeep

As a landlord, maintaining your property isn’t just about keeping it habitable—it’s a business strategy that directly affects your bottom line. From reducing tenant complaints and increasing rental yields to leveraging tax benefits and ensuring long-term property value, proactive maintenance is key to a successful rental business.

Let’s explore why prioritising asset upkeep makes sense for landlords in the UK, how deferred maintenance liability can impact your returns, and how tools like Planna can save you time and money while encouraging tenants to play their part.

Tenant Satisfaction: Why Maintenance Matters

One of the top reasons tenants leave a property is dissatisfaction with how maintenance issues are handled. According to a recent UK survey, 57% of renters reported waiting weeks for repairs, while 23% cited unresolved maintenance issues as a reason for ending their tenancy. Tenant turnover isn’t just inconvenient; it’s costly.

The costs of tenant churn include:

• Void periods (average UK void costs: £1,000/month).
• Letting agency fees (10-15% of annual rent).
• Cleaning and re-letting costs (average £500-700 per property).

By addressing maintenance proactively, you not only reduce tenant complaints but also foster long-term relationships that keep your property occupied and profitable.

Increased Yields Through Preventative Maintenance

Well-maintained properties attract higher-quality tenants and can command premium rents. A study by HomeLet shows that properties in good condition can achieve 8-15% higher rental yields than those with visible issues. For example:

The additional yield from maintaining a property is not just about immediate returns; it also minimises depreciation and ensures higher market value in the long term.

Deferred Maintenance Liability: The Cost of Neglect

When maintenance is postponed, it creates a deferred maintenance liability—an increasing financial burden that compounds over time. This liability can lead to:

• Higher repair costs: For example, a boiler service might cost £100 annually, but replacing a failed boiler due to neglect could cost upwards of £3,000.
• Increased tenant dissatisfaction: Prolonged repair timelines frustrate tenants and may lead to churn.
• Asset depreciation: Neglected properties lose value faster, potentially impacting your ability to refinance or sell at a competitive price.

A proactive approach to maintenance saves money in the long run and ensures your property remains an attractive investment.

Leveraging Planna: Encouraging Tenant Participation

Maintaining a rental property doesn’t have to be a solo effort. Tools like Planna can streamline your maintenance strategy by:

1. Identifying Issues Early: Planna uses AI to detect potential maintenance problems, reducing reactive repair costs by up to 30%.
2. Engaging Tenants: The platform includes a rewards system that incentivises tenants to complete minor upkeep tasks, such as cleaning filters, checking smoke alarms, or reporting small issues before they escalate.
3. Providing a Preventative Budget: Planna calculates a preventative maintenance budget tailored to your property, helping you forecast costs and maximise your Return on Maintenance Investment (RoMI).

For example, a tenant who regularly cleans the filter of a washing machine can prevent a repair costing £150. With Planna’s reward system, tenants are motivated to care for their living space, saving you money and reducing the likelihood of major repairs.

Tax Benefits for Preventative Maintenance

In the UK, landlords can claim certain maintenance expenses as tax deductions, making proactive upkeep even more attractive. Eligible expenses include:

• Repairs and maintenance to keep the property in good condition (e.g., fixing a leaky roof or repainting walls).
• Service contracts for appliances and systems.
• Replacement of fixtures and fittings (if the replacements are like-for-like).

For instance, spending £2,000 on maintenance could save you up to 40% in tax relief if you’re in the higher tax band. Delaying maintenance might increase your costs and reduce what’s deductible, impacting your net income.

A Worked Example: Dishwasher Maintenance

Let’s examine the financial impact of maintaining an asset like a dishwasher in a rental property.

Scenario 1: Proactive Maintenance

• Annual cost of descaling and servicing: £60
• Average lifespan: 10 years
• Total maintenance cost over 10 years: £600

Scenario 2: Deferred Maintenance

• No regular maintenance: Limescale build-up causes motor failure after 5 years.
• Repair cost: £150
• Replacement cost after 5 years: £400
• Total cost over 10 years: £950

By maintaining the dishwasher, you save £350 over 10 years and avoid the inconvenience of repairs and replacements during a tenancy.

Chart: Cost Comparison Over 10 Years

Conclusion: Maintenance as an Investment

For UK landlords, proactive maintenance isn’t just a legal or ethical obligation—it’s a financial strategy that delivers measurable returns. From happier tenants and higher yields to tax savings and long-term asset value, the benefits of staying on top of upkeep far outweigh the costs.

By using tools like Planna to manage maintenance and engage tenants, you can turn what might feel like a chore into a well-oiled system that saves you money and enhances your property’s appeal. Don’t let deferred maintenance liability erode your investment; act now and reap the rewards for years to come.