How Are Landlords Preparing for Rising Repair Costs in 2025?

Question

Curious how other landlords are planning for something I’m seeing more frequently: higher repair/maintenance bids across almost every market.

A lot of investors I speak with are:
• Increasing reserves
• Switching to more proactive inspections
• Using short-term bridge funding to cover heavier turnovers
• Refinancing older loans to free up capital

What adjustments are you making?
Are rising repair costs changing how you screen tenants, budget, or structure reserves?

Always interested in hearing how other landlords are strategizing.

Marc Winter · Answer

@Kelly Schroeder,

So long as our government keeps printing paper money, the purchasing power of the dollar will decrease.  Of course, that will affect the cost of supplies and repair costs.  Budget that in, and remember to structure leases with predictable, regular rent increases.

There will always be some ups and downs in the market, but long-term, I believe real estate investing returns will outpace our constant underlying inflation.

James Jones · Answer

Kelly, great question, we’re definitely seeing the same thing across our Memphis portfolio. Instead of reacting to rising repair bids, we shifted our entire maintenance strategy to reduce the number of surprises.

Here are the biggest changes that have helped us stay ahead:

1. We standardized our rehabs to lower future repair variables.

One flooring type, one cabinet style, one vanity, one paint color.

When everything is uniform, contractors bid faster, we avoid specialty labor, and replacement costs stay predictable year after year.

2. We stopped “deferred maintenance creep” by using proactive quarterly check-ins.

Not full inspections, just short touchpoints:

• HVAC filter

• Leaks under sinks

• Soft spots around tubs

• GFCIs

Catching a $40 issue early prevents a $400 or $4,000 one later.

3. We tightened tenant screening around maintenance risk, not just income.

Poor housekeeping is one of the quietest drivers of high repair costs.

We now require photos of current living spaces for any prospect with past rental history. It’s reduced excessive wear dramatically.

4. Every property carries its own reserve runway.

We budget 10–15% of gross rent per property depending on age and rehab quality.

Older systems = higher reserves. Fully updated systems = lower.

No cross-subsidizing between LLCs keeps our books cleaner.

5. We use Section 8 to stabilize cash flow against rising variable costs.

With voucher income covering the majority of rent, our repair spikes don’t hurt as much because baseline cash flow is predictable.

6. We’re replacing “as-needed” repairs with lifecycle planning.

Instead of waiting for failure, we replace:

• Water heaters at year 10

• HVAC condensers at year 12–15

• Roofs proactively depending on shingle age

Planned replacements get better pricing than emergency replacements.

7. Monday.com + Buildium + QBO keeps our repair data clean.

We track repair types, cost by vendor, frequency per property, and see which homes drift out of range. Patterns show up faster than emotions do.

Rising repair costs haven’t hurt us as much because we engineered the operations to reduce the number of unknowns.