Preventative Maintenance Plan
Overlooked Caulking Leads to a $19,000+ Rehab
Case study #20725
Preserving Properties. Preventing Problems.
How the job started
We had just started surveys for this property manager. This unit had one of his long-time tenants. She had been renting for 20+ years and had virtually no problems.
Before our first survey, the property manager sent photos of a bathroom floor that needed to be replaced. The floor was a floating bamboo click-plank. It showed water damage and separation. They asked for pricing on linoleum, LVP, and tile.
Based on their information, we estimated 46 square feet, installed over the existing subfloor:
- Linoleum: $1,457
- LVP: $1,557
- Tile: $2,357
The linoleum option was approved. The estimate noted that the price only covered install over the existing surface after the bamboo came up.
Once approved, we did a quick in-person walkthrough to confirm trim measurements and make sure we were ready to start. The floor felt soft. We suspected moisture under the bamboo. We told the property manager there was a good chance of additional damage after demo. We would not know until the floor was open.
What we found
The bamboo click-plank was installed over an older layer of linoleum. Water had been traveling under the bamboo for a long time. The linoleum and the damage under it were not visible until the bamboo came up.
After the bamboo came up, we stopped the original scope.
- The subfloor around the toilet was rotted through
- The shower was leaking under the tub
- Black mold was present in the opened floor, and later in the wall cavity
The water was coming from three places:
- The waterproofing on the tub surround had failed. Each shower sent water behind the wall, under the tub, through the dividing wall, and across the floor to the toilet.
- The drain line under the tub was leaking into the crawl space.
- The shower supply lines were leaking inside the wall.
The shower tile had been set on regular drywall, not cement board. Once water got behind the surround, it had a path into the wall cavity and the floor framing.
Scope of the rebuild
About half of the bathroom floor framing was replaced. New 2x12s from the sill plate to the beam, about 10 feet long. New subfloor, new plumbing rough-ins for the toilet, shower valve, and P-trap, a new tub and prefabricated surround, a new toilet, new linoleum, and new trim.
When the walls were opened, more damage showed up. The half-wall between the shower and toilet was rotted through the bottom plate and the lower half of the wall studs. Mold had moved through the shower wall into the adjacent living area. A new glass shower door was added.
Original flooring job, stopped after demo
$587.50
Bathroom rebuild — demo, plumbing, framing, subfloor, tub/surround, toilet, valve/trim, linoleum, trim
$13,625.00
Change order — half-wall framing, additional drywall in the bath and living area, paint, glass door
$5,399.00
Total paid
$19,611.50
Photographs from this job are available on request at info@envisionpros.com.
Occupied inspections
The tenant had lived in the home for more than 20 years and kept it clean and tidy. She submitted maintenance requests when she needed them. This property manager ran one of the highest occupied-survey standards we had seen outside the RPC standards created by the NRPS Institute.
Even then, most property managers do not inspect caulking around the toilet or at the base of a shower surround. They do not inspect grout. And when the caulk is bad, it still looks like a small issue, so it gets ignored.
Occupied visits check whether the tenant is maintaining the home and whether anything obvious is unsafe. They do not include a wet-area inspection of tub-surround caulk, shower valves inside the wall, or the floor under a floating plank. Property managers run occupied inspections. They are not hired as home inspectors. Tenants are not responsible for the structure.
What the Preventative Maintenance Plan covers
The plan is $79 per month. It includes:
- Twice-yearly interior and exterior Rental Property Condition reports, completed by a CRCA Tech
- Kitchen and bathroom caulking checked twice a year, and recaulked when the bead has failed
- Water and drain lines checked twice a year, with free gasket replacement and tightening as needed
- Smoke alarm checks twice a year, with free replacement as needed
- Twice-yearly drive-by surveys, so someone is looking at the property four times a year
- Photo documentation of what was found
Cost comparison
20 years of the Preventative Maintenance Plan ($79 per month)
$18,960
This rebuild
$19,611.50
Twenty years of the Preventative Maintenance Plan at $79 per month comes to $18,960, less than this one repair.
Conclusion
Reactionary maintenance costs more than fixing small issues when they first show up. A tenant is not responsible for the structure, and may not notice or care about a slow leak, bad caulk, or the other small items that lead to this kind of failure. Routine occupied inspections are not built to find these items. Owners are less likely to approve a request that looks like a minor inconvenience.
With the PMP, a third-party company surveys the property to a documented standard. Owners know that standard and what is expected of the property. The small items that can look like a manager adding extra work are built into the monthly price and completed at no additional charge. Tenants have a written standard too. The NRPS Institute publishes a tenant document that lays out those expectations.