Magnitude and variation of maintenance expenditures in rental properties in the United States
摘要
There is limited empirical evidence regarding the differences in maintenance costs across units and building types and how much tenant wear and tear contribute to these costs. Yet, certain residential buildings are costlier to operate, and anecdotal evidence suggests some tenants are responsible for higher maintenance costs during their tenancy and for unit turnover. Recent advancements in property management software allow landlords and property managers to track maintenance materials and labor costs at the unit level. This paper takes advantage of these advancements and uses unit-level work order data merged with building and tenant characteristics for 1,745 tenancy spells from four different housing providers to uncover the factors associated with variation in maintenance expenditures during occupancy and at turnover. The findings reveal that unit and building characteristics have a greater impact on maintenance costs than tenant characteristics. The factors associated with variation in maintenance costs across units and building types allow for improved expenditure planning and budgeting and informs decisions regarding asset management and whether to invest in or divest from certain property types.