We have rental property in Phoenix, AZ and we are finally in a position to sell (i.e. We are no longer upside down). The lease ends Sept2015 however we just found out the roof needs replacing due to heavy rains over the summer. The leak is minor but visible on the ceiling. We have two separate quotes at $12k each and a repair quote for $6k.
Option 1: Should we replace or repair the roof now? If so, can we expect to get our $12k (or $6k repair) investment back when we sell?
Option 2: Take a risk and wait until we sell in Sept2015 and give an allowance to the new owners?
No, you won't get the full cost of the roof back. But if its bad you may have a hard time selling without replacing it.
Was there a specific event that caused damage? If so insurance may cover a replacement.
Brian, sounds like you have a claim. a few things to consider given your comments.
1) The longer you wait to file the claim, the greater the chance they will fight you on it. Most insurance policies have some language stating you are required to report claims in a timely fashion.
2) If you don't file this claim, but have another bad storm by Sept 2015, it's probable the future storm damage claim would be denied on the basis that you knew about the damage and decided to not fix the property. They could claim "wear and tear" or "neglect".
How big is the house/roof? $12K sounds like it's on the high side, you might want to get a couple more quotes. Welcome to BiggerPockets!
You won't raise the value by $12k by replacing the roof but you'll probably lower the value by $12k by not replacing it. A new roof will add some value but a leaking roof will substantially lower the value and severely shrink your buyer pool.
Do you really think the roof would survive another monsoon season (July-September 2015)? I'd replace the roof between now and June.
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