How You Can Avoid the "Landlord Special" in Your Properties

The "landlord special" is a negative term associated with rentals that have undergone cosmetic improvements meant to obscure structural defects. It's a lazy way to present a condo, apartment or house as move-in-ready without making necessary repairs. This approach appears to be an effective cost-cutting measure at first, but it can backfire down the road, impacting tenant retention, property maintenance and landlord insurance, and resulting in more losses than perceived savings.

No property owner wants a reputation for putting substandard rentals on the market, not even in a landlord-friendly state like Florida. Here's what you must do to prepare your properties between leases to delight prospective tenants and minimize your operating expenses over the long term. For a full walkthrough of what to check before your next tenant moves in, see our landlord checklist for getting your property market-ready.

Get All Key Systems Inspected

A cursory assessment allows you to spot obvious red flags but not the obscure ones. Only people with a trained eye can notice subtle signs of damage, which eventually compound when left unmitigated for too long.

Schedule professional inspections to ensure your electrical, plumbing, HVAC, roofing and siding systems are in good shape. These experts can identify and inform you about potential concerns. They can tell how severe these issues are, how much time you have to address them and your options. Inspection reports serve as legal documents to support insurance claims, strengthening your case if ever you must file.

Seek expert advice to know the worst-case scenario if you put off repair or replacement recommendations. Timing optional projects can be tricky, as they affect your bottom line whichever direction you take.

Premature capital improvements drive a rental's total cost of ownership by inflating its acquisition cost sooner than necessary. However, deferred renovations and upgrades increase the risk of irregular operating expenses, since the financial impact of emergency issues is difficult to predict.

Prioritize Safety- and Comfort-Related Repairs

Suppose the system inspections reveal multiple problem areas. Which ones should you address first?

In a perfect world, you would tackle everything to make your rentals as good as new for incoming tenants. In reality, focus on problems that pose immediate danger and cause significant discomfort to their future occupants. Examples include roof sections at risk of being blown off during hurricane season and a low-refrigerant AC.

Making safety- and comfort-related improvements a priority maximizes your limited resources, and some projects may not even require financing.

For instance, the security deposits of your previous tenants can cover the damage they've caused, whether intentional or unintentional. Collecting security deposits proportional to the size of your rentals and the quality of their amenities helps ensure you have sufficient funds to fix the issues caused by former renters. If you're unsure how Florida law treats these funds, our guide on security deposits for Miami landlords breaks down what you're allowed to collect and deduct.

Moreover, some projects are DIY-friendly, such as interior paint jobs. However, using old paint products and forgetting to prepare the surfaces are rookie mistakes. Expired paint can become a breeding ground for mildew, while applying a fresh coat without sanding, cleaning and priming surfaces may require a do-over.

Perform a Deep Clean if Necessary

Renting out spotless properties is the opposite of the landlord special. It demonstrates that they're move-in ready, which should make them more attractive to prospective tenants.

Professionals strongly recommend deep-cleaning your properties every other month, including disinfecting less frequently touched areas. If this process is part of the lease agreement and a previous tenant failed to comply, the security deposit may cover it.

Be the Landlord Who Makes Tenants Feel Special

Doing the landlord special is shortsighted at best and deceitful at worst. Instead, get your rentals professionally inspected, repair issues for safety and comfort, and deep-clean the units to make them truly move-in ready, so you can begin your relationships with new tenants on a positive note.

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Evelyn Long is a writer that specializes in housing market trends. She is also the editor-in-chief of Renovated Magazine, where she writes essential resources for renters and homeowners. She has contributed to several other publications like the National Association of Realtors and Realty Executives.