I frequently am asked by landlords and tenant how long different furnishings should last. This question comes up frequently when a landlord wants to charge the tenant with the cost of repair or replacement of components in a rental property. Landlords tend to want to charge the complete cost of replacement on the last tenant in possession before the item broke or was scheduled for replacement. In contrast the tenant is not liable for mere ordinary wear and tear. The closer the furnishing is to its life expectancy before failure or replacement the more it looks like the failure was simply ordinary wear and tear. The parties could rely on pictures and anecdotal evidence of the life expectancy of home components. Or they could hire an expert to give evidence and direction. Or they could look to industry standard material. A recent study was performed in 2006 by the National Association of Home Builders and Bank of America Home — The Equity Study of Life Expectancy of Home Components.
This information can also be used for scheduling maintenance and refurbishment of rental property or evaluating structures for acquisition. Knowing the expected life of the residence components can also aid in forecasting future property maintenance expenses. Using the list you can find which components are near their life expectancy and either negotiate a reduction in price on those components.
If you are an investment property buyer, landlord, tenant and want more information on how you can use this information in your business, give us a call at 907-375-9226 to schedule an appointment.