Who Fixes What? Repairs vs Upgrades and When to Call a Pro

As a landlord, you're responsible for keeping the property habitable—working heat, water, and a safe structure. When something breaks, you fix it or arrange for someone else to. The catch: not every fix is the same for taxes. A repair restores something to working condition; an improvement makes it better than before. That distinction affects whether you deduct the cost this year or depreciate it. For the tax rules in plain language, see Repairs vs Improvements for Taxes, Depreciating Assets, and our Tax Prep Checklist. For managing tenant requests and tracking work, see Streamlining Maintenance Requests.

What Landlords Must Fix (Habitability)

You must provide a habitable unit: working heat (where required by state), hot and cold water, safe electrical and structure, and compliance with health and safety codes. If the furnace dies, the pipe bursts, or the roof leaks, you arrange the repair in a reasonable time. State and local law define "reasonable" and what exactly is required—for an overview, see Landlord Legal Compliance. Tenant damage or misuse is often the tenant's responsibility; normal wear and tear and habitability issues are yours.

Repairs vs Improvements

A repair brings something back to its prior working condition—fixing a broken door, patching a leak, replacing a failed part. An improvement adds to or betters the property—e.g. upgrading the HVAC to a higher efficiency model, adding a new fixture, or renovating a bathroom. Day to day, both are your job when they affect habitability or the leased premises; the difference matters most at tax time. Repairs are typically deductible in the year you pay; improvements are usually depreciated (or eligible for bonus depreciation). For the IRS rules and examples, see Repairs vs Improvements for Taxes.

When to Call a Pro

For small fixes you can do safely and legally (e.g. unclogging a drain, replacing a filter), many landlords DIY. For anything involving gas, electrical, structure, or code—or when you're not sure—hire a licensed contractor. Get written quotes and keep invoices for your records and taxes. A clear process for receiving and tracking tenant requests reduces delays and disputes; for a system that works, see Streamlining Maintenance Requests.