Why Ignoring Maintenance Can Sink Your Rental Returns

Owning a multi-unit residential building means more than collecting rent and dealing with tenant inquiries. Whether your property sits in Halifax, Montreal, Toronto, or Vancouver, long-term success depends heavily on how well the building is maintained. Routine upkeep protects asset value, ensures regulatory compliance, and stabilizes operating income. When maintenance is neglected, or performed poorly, the financial impact can escalate quickly, eroding cash flow and diminishing the overall worth of your investment. Many landlords underestimate how quickly small issues can escalate. A tiny leak, an overworked furnace, or a poorly executed repair can grow into thousands of dollars in damage, frustrated tenants, long vacancies, or even legal liabilities. In a market where operating costs and construction expenses continue to rise, ignoring maintenance isn’t just careless, it’s financially reckless.

The Real Costs of Deferred Maintenance

A national condition survey of multi-unit housing reported that repair costs averaged roughly $7,500 per unit over a decade, excluding basic touchups. For buildings with aging electrical systems, outdated elevators, or deteriorating envelopes, projected repair needs climbed as high as $17,000 to $21,000 per unit². Small issues often transform into major financial burdens. A minor water leak left unchecked can turn into mould remediation, subfloor replacement, and tenant relocation. Not only does this create direct expenses, but landlords may also face insurance complications if the insurer concludes that the problem resulted from maintenance neglect. Property-management firms frequently recommend allocating around one percent of the property’s value each year for ongoing maintenance costs¹. For a $2-million building, that means planning to spend around $20,000 annually just to keep operations on track. This doesn’t include major capital expenditures such as roof replacement, plumbing replacement or furnace modernization.

The operational consequences of deferred maintenance extend beyond repair bills. Poor maintenance often triggers tenant dissatisfaction, prompting complaints, negative online reviews, and ultimately higher turnover. The cost of turning over a unit in many cities, including cleaning, painting, repairs, advertising, and lost rent, now ranges from roughly $2,500 to as high as $4,000, depending on the market³. For example, repainting a two-bedroom unit in Ottawa can run from $1,000 to $3,000⁴, and that work is standard during turnovers. Hiring the cheapest contractor is rarely the solution. Low-cost labour often results in repairs that fail prematurely, leaving owners to pay for the same job twice. Worse yet, improper repairs can create building-code issues or invalidate insurance claims. Landlords regularly cite contractor reliability as a significant challenge, missed appointments, substandard workmanship, and lack of accountability all contribute to extended vacancies and tenant frustration.

How Strong Maintenance Supports Long-Term Returns

Viewing maintenance as an investment rather than a cost changes the landscape of property ownership. Good maintenance strengthens every part of a building’s financial performance:

1. Protection of long-term asset value: By proactively servicing roofs, windows, furnaces, and HVAC systems, landlords delay major replacements and avoid catastrophic failures. National housing authorities emphasize the importance of reserve funds for capital components and encourage owners to follow structured lifecycle planning⁵.

2. Reduced operational risk: Properly maintained buildings see fewer code violations, fewer emergency repairs, and fewer liability issues. Ensuring that life-safety systems, heating equipment, and structural components are regularly inspected reduces the likelihood of crises that disrupt tenants and drain financial reserves.

3. Higher tenant satisfaction and lower turnover: Tenants who receive quick, competent maintenance service are more likely to renew their leases. This stability cuts turnover costs, reduces listing expenses, and minimizes vacancy loss. Strong maintenance teams, not just “handy” contractors, improve communication, speed, and quality of work.

4. More predictable cash flow: Budgeting for ongoing maintenance and planning capital expenditures ensures predictable financial performance. Rather than scrambling when a roof fails unexpectedly, owners can fund replacements out of reserves, avoiding emergency financing or cash-flow interruptions.

5. Value in hiring qualified teams: A professional property manager or contractor may appear to cost more upfront, but the savings emerge in reduced vacancy, fewer repeat repairs, and consistent compliance. For example, in Ontario, property-management services often run between 8% and 12% of collected rent⁶, an amount that is frequently outweighed by the financial drag of poorly executed maintenance.

Final Thoughts

In the operation of rental buildings

, maintenance isn’t a discretionary expense, it’s a critical piece of overall profitability. When building systems are ignored, when repairs are delayed, and when incompetent contractors are hired to cut costs, the long-term financial damage can be far greater than the savings. Prioritizing regular upkeep, maintaining capital reserves, and choosing reliable professionals transform maintenance from an annoyance into a strategic advantage. A well-maintained property attracts stable tenants, preserves building value, and generates stronger, more consistent returns. In a market where every dollar matters, good maintenance is not merely responsible management, it’s a competitive advantage.

Endnotes

1. Ironwood Property Management Consulting, “Frequently Asked Questions About Property Maintenance Costs and Fees.”

2. Government of Canada, “Condition of Multi-Unit Housing in Canada: 1999–2009.”

3. Maximum Inc., “The Rising Cost of Rental Turnover in Canada, 2025.”

4. Rent Set Go, “Breaking Down the Cost of Tenant Turnover in Canadian Rentals.”

5. First Nations Housing Professionals Association, “Understanding the Replacement Reserve.”

6. Blue Anchor Property Management, “Property Management Cost in Ontario (2025).”