To Fix or Not to Fix!

That's always the question :)

We got a call today from a renter (a very good renter) in one of our properties.  His lease is up in a few weeks and he wants to resign for 2 years.  He mentioned that there was an issue with the heater and the garage door (the door to the house in the garage, not the actual garage door itself).

Obviously as a landlord we have no choice but to fix any AC/Heating issues, but it will be a few hundred bucks to fix the door.  To save you the details, it's not a real problem but it bothers the renter.  That's basically all it boils down to.  It's definitely something we don't have to fix.  So do we fix it?

It depends.  In our case, we chose yes.  Why?  We have a very good renter and he always pays on time and he wants to sign a new 2-year lease at $1,100/month.  If we don't fix it will he leave?  No idea.  He didn't say either way (and I doubt he would leave but he might not be happy with us and that could lead to property neglect or destruction), but one thing I know for sure.  If we throw a little money at it, he is definitely signing a 2-year lease and potentially staying longer than that.  If we decide not to fix it, there is no telling what might happen.  If it was an unnecessary $5,000 repair I would be posting something very different :).  But it's just a few hundred dollars (probably unnecessary) to fix and ensure a total of $26,400 comes our way over the next 2 years.

We obviously have other options:
-- We say we'll fix it *if* he re-signs the lease
-- We fix it later on
-- We don't fix it at all and just say "learn to live with it"
-- etc, etc, we could get creative

My point of this post is ALWAYS evaluate your decision as a business.  We didn't make the decision to fix because he's a nice guy.  We made the decision to fix because it guarantees a continued cash flow.  He pays on time and doesn't hurt the property.  It was strictly a business decision.  Not having this property rented for just a few months can destroy cash flow for the next 2 years.  If he was a horrible renter and we wanted him out, we may have chosen a different course.