21 Nov 12
With investors trying to get as much value out of their rental properties as possible, the temptation for some to go down the 'do-it-yourself' route is too great to resist. This is not such an issue if the person involved is experienced in performing basic repairs such as replacing a few tiles, repairing a hole in a plasterboard wall or throwing a coat of paint on a door. Unfortunately, sometimes the temptation to go further and try their hands at other trade work is too great. This is where a person can end up facing massive fines, or worse still, having someone injured as a result of their activities.
Trade Qualifications Confirm Skills and Knowledge
There is a very valid reason why tradespeople undergo several years of apprenticeship training and work hard to gain a recognised qualification in their chosen industry. Real estate agents keep contact details of licensed tradespeople. When they complete their training, they are experts in their trade, and know how to perform tasks quickly, efficiently and safely. Nowhere is this more important than when dealing with electricity.
Electricity is one of the greatest inventions of our age, and also one of the most deadly. There are no second chances and as the saying goes, "their mistakes are buried with them". For investors to try and cut corners by doing electrical repairs on investment properties is not only foolish, but very expensive if they get caught. Under no circumstances should anyone be carrying out electrical work unless they are properly licensed.
The same applies to plumbing repairs. Once again, plumbers are required to complete trade qualifications before they can become licensed. Replacing a tap washer is a minor repair but, for example, digging up and modifying a drainage trench that has been passed by the local authorities is a completely different scenario. Plumbers are required to have not only trade knowledge, but also know the State and local government regulations that apply to their industry. A do-it-yourself person simply does not have these skills.
Dodgy Repairers Risk Heavy Fines
In both these cases there are severe financial penalties involved if these activities come to the notice of the authorities. In addition, any building or liability insurance covering the rental property could be severely compromised or even cancelled if loss arises from repairs carried out by unlicensed people. It is hardly worth the few dollars of savings doing unlicensed work, when balanced against the loss of the entire property should, for example, it be destroyed by fire as a result of a faulty electrical repair.
All expenses involved in running an investment property can be used to offset taxable income. For further information about the dangers of doing dodgy repairs,click here. There is no logical reason for an investor to engage in such risky behaviour by doing electrical and plumbing repairs on their rental properties.