1. “Let’s repair it one more time.”
Looking only at today’s expense leads to a simple conclusion: PLN 300 is less than PLN 1,500. But when managing a flat, I look beyond one invoice to the total cost of the problem.
Three visits from a technician. Three appointments arranged with the tenant. Three periods without a working appliance. The risk of another breakdown, time spent dealing with it, and finally buying the washing machine we had put off replacing for a few months.
Sometimes the cheapest repair is the most expensive solution.
2. “The silicone sealant will last a bit longer.”
This is one of my favourite examples of a false economy. Replacing the sealant around a bath or shower costs relatively little, so it is easy to postpone. Just another month. Then water starts getting where it should not, damp appears and furniture swells.
In the worst case, the neighbour downstairs notices first. A saving measured in hundreds of zlotys becomes a repair costing thousands. In property management, I particularly value spending that prevents larger expenses.
3. “Let’s not freshen it up. Someone will rent it anyway.”
Sometimes the best investment before letting is not a new kitchen. It is getting what we already have into really good condition.
4. I would not cut corners on something the tenant uses every day
A mattress, sofa, kitchen tap, chairs, lighting, washing machine or fridge does not have to be a premium product.
In an investment property, I often prefer simple, durable items that are easy to replace. But there is a difference between a sensible standard and the cheapest possible option. If the cheapest chair needs replacing after a year, we have saved very little. If a very cheap mattress leaves a good tenant unhappy, the purchase price is no longer the only cost.
I do not just ask, “How much does it cost?” I also ask, “How often will we have to come back to this?”
5. I would not ignore a fault because the tenant “can live with it”
This is particularly risky. A tenant says: “It leaks a little, but it isn’t urgent.” “The circuit breaker trips sometimes.” “It’s slightly damp under the sink.” “The dishwasher doesn’t always finish its cycle.”
It is easy to reply, “Let’s keep an eye on it.” Sometimes that is the right decision. But with certain symptoms, saving money on diagnosis is simply risky.
The tenant sees the problem in terms of comfort. A manager should also consider the risk to the property. Those are not always the same thing.
The cheapest option and the best value are different things
This is the heart of it. A manager’s job is not to spend the owner’s money. Nor is it to save money at any cost.
We should make decisions that keep the property’s cost to its owner as low as reasonably possible over the years while maintaining its value and appeal to tenants.
Sometimes that means negotiating PLN 100 off an invoice, finding a less expensive contractor or avoiding an unnecessary purchase. Sometimes the best decision is: “Let’s not repair this for the third time. Let’s replace it.” Or: “Let’s not wait until it starts leaking.” Or: “Let’s spend that PLN 1,500 before the next tenancy.”
There are savings I would advise an owner against
The final decision about their money is, of course, theirs. My role is to explain when an apparently cheaper option could end up costing more.
After years of working with rented flats, I increasingly see that the most expensive decisions do not necessarily start with large purchases. Sometimes they start with a very innocent: “Let’s leave it for now. We’ll save some money.”