One of the clearest lessons from 2025 is that the cost of maintaining rental homes has fundamentally shifted. This isn’t about a single year of unusual expenses; it’s about how expectations, regulations, and operating realities have changed what responsible ownership looks like.
Across the Living Room portfolio, maintenance spending averaged 14% of annual rental income in 2025, up from 12% in the prior two years. For a home renting at $2,500 per month, that works out to roughly $350 per month allocated toward repairs, preventative maintenance, project management, vacancy turnover, and landscaping. That number reflects both higher costs and a more proactive approach to care.
Tenants Are Reporting Issues Earlier—and That’s Not a Bad Thing
One of the biggest shifts we’ve seen is how and when tenants submit work orders. Residents are reporting issues earlier and with more confidence, and expectations around response times are high. We’re seeing more requests for items like drain clean-outs, peeling paint, moss buildup on sidewalks, and other issues that may have previously gone unreported until they became larger problems.
From a habitability and risk-management standpoint, this is a positive change. Early reporting allows problems to be addressed before they escalate, but it does mean that maintenance volume is higher and more consistent throughout the year.
Labor Costs Are Up—and Quality Still Matters
The cost of skilled labor continues to rise. Licensed, insured vendors who carry appropriate coverage and pay competitive wages are reflecting those realities in their pricing. Across trades like painting, plumbing, flooring, and electrical work, we’ve seen bid increases of 10–35% over the past five years, depending on the scope and specialty.
While lower-cost options may exist, cutting corners creates risk for the owner, the resident, and the property manager. At Living Room, we continue to require licensed and insured vendors and fully permitted work where applicable. Doing the work correctly the first time reduces liability and prevents repeat issues that cost more in the long run. Doing this work with the right vendors means they too are keeping up on wages, insurance and liability costs that push prices.
Security Deposit Laws Haven’t Changed—but the Risk Landscape Has
One important clarification for owners is that security deposit laws themselves have not materially changed in the last five years. The rules around what can be withheld, how documentation must be provided, and the timelines for accounting have remained largely the same.
What has changed is access to legal information, tenant advocacy resources, and on-demand guidance. Residents today can easily review statutes, templates, and legal interpretations, often with the help of AI tools. That shift has changed the risk calculus around security deposit withholdings.
Even when forms, photos, condition reports, and lease language fully support a withholding, pursuing the full amount is not always the most practical or responsible path forward.
When “Right” Isn’t Always Worth the Fight
From a property management perspective, security deposit disputes now carry more friction than they once did. A single contested withholding can require significant staff time, extended back-and-forth communication, and, in some cases, legal involvement (often outweighing the dollar amount in question).
As a result, many professional property managers are becoming more conservative about what they will withhold from a deposit, even when documentation supports it. This isn’t about ignoring the rules; it’s about making judgment calls that protect owners from unnecessary escalation, cost, and risk.
What This Means for Owners
The practical outcome is that more turnover-related costs (especially big-ticket items like full interior paint) are being absorbed as operating expenses rather than recovered at move-out. Homes still require the same level of preparation to be competitive and compliant, but fewer costs can reliably be shifted to the security deposit without introducing risk.
This is one of the reasons we emphasize preventative maintenance, realistic budgeting, and proper preparation throughout the tenancy, not just at the end. Addressing wear and tear proactively and planning for refresh cycles reduces the likelihood of disputes and creates smoother transitions when a home does turn over.
While it’s true that many homes will rent as-is at the right price, the condition of your home directly impacts the type of residents it attracts and the experience you have as an owner. Well-maintained homes tend to see fewer disputes, smoother renewals, and more predictable long-term outcomes.
Looking Ahead
Maintenance isn’t about chasing perfection; it’s about protecting the asset and creating stability. The lessons from 2025 reinforce the importance of treating maintenance and turnover costs as part of ongoing ownership, not something to reconcile after a tenant moves out.
As we move into 2026, our focus remains on helping owners plan thoughtfully, invest strategically, and understand what it truly takes to operate a rental home responsibly in today’s environment.
From the desk of President & Broker OR/WA – Coty Thurman