Planning work: mistakes to avoid

For landlords managing multiple buildings or rental units, planning work is not just about fixing a problem when it arises. It is a strategic exercise that helps protect your assets, limit rental disruptions, and better control long-term costs. However, some common mistakes should be avoided when planning work in a rental property portfolio.

Here are the most common pitfalls to avoid.

Mistake 1 - Waiting until a problem reaches a critical level

The first mistake is delaying work until an existing issue reaches a critical stage. In a rental property, preventive maintenance is always less costly than emergency repairs. For example, postponing roof repairs or replacing a heating system can lead to significant damage to the building in the event of a failure. Whether you own one or several properties, planning your work proactively helps you avoid unexpected expenses while spreading your investments over several years.

Mistake 2 - Overlooking administrative timelines

A common mistake for owners undertaking major work is scheduling a start date without first obtaining the necessary municipal permits. In Québec, permit approval timelines can vary from several weeks to several months depending on the case. Planning your work early allows you to incorporate these administrative delays into your property management schedule. Otherwise, poor planning may cause your initial plan to fall through. For example, if you planned for affected units to be vacant for a specific period matching the duration of the work, a delay caused by permit approval could disrupt your strategy. Units may remain vacant longer than expected, resulting in greater rental income loss than originally anticipated.

Mistake 3 - Underestimating the impact of work on tenants

When managing multiple units, owners must also consider the impact on tenants. This includes those directly affected by the work, as well as others who may be indirectly impacted depending on their unit’s location. Poorly planned work can generate significant disturbances, such as excessive noise, restricted access to certain areas, or temporary service interruptions.

Careful planning helps minimize these impacts. It is recommended to establish a clear schedule tailored to the type of work, inform tenants in advance in accordance with the Civil Code of Québec, and coordinate interventions to reduce disruptions.

Transparent communication helps maintain a healthy landlord-tenant relationship and prevents complaints. We also recommend reading our guide “Renovate to live better, together”, which outlines the rights and obligations of landlords and tenants regarding maintenance and work.

In addition, properly planning work over several years can help reduce the impact of a significant rent increase imposed all at once on affected tenants. Under the current calculation method, major repairs and improvements are accounted for at 5% of the cost of the work, corresponding to a 20-year amortization.

Mistake 4 - Ignoring regulations

Before starting work and hiring a contractor, make sure you comply with regulations governing maintenance, repair, and renovation work.

Regulations related to the Régie du bâtiment

If you hire a contractor, ensure they hold the necessary licenses issued by the Régie du bâtiment du Québec (RBQ) and have appropriate insurance. Follow government guidelines regarding construction work before proceeding.

It may also be more beneficial to build long-term relationships with specialized contractors rather than always seeking the lowest bid. Owning multiple buildings means ongoing work in both the short and medium term.

Regulations related to the Commission de la construction du Québec

Make sure to comply with Bill R-20 (Act respecting labour relations, vocational training and workforce management in the construction industry), administered by the Commission de la construction du Québec (CCQ). This law strictly governs construction work (maintenance, repair, renovation, and modification) in the rental property sector (owner-occupied housing is not affected).

More specifically:

• Maintenance and repair work are subject to the law unless performed by permanent employees of a professional employer.

• Renovation and modification work are subject to the law and must be carried out by workers holding competency certificates issued by the CCQ. Failure to comply may result in fines.

Our members also have access to a reference sheet to help determine whether specific work is subject to Bill R-20.

Mistake 5 - Overlooking financial assistance programs and tax planning

Another mistake is undertaking work without checking available financial assistance programs. Depending on your situation and the work undertaken, some institutional initiatives can support renovations, particularly those aimed at improving energy efficiency. For example, programs such as Hydro-Québec’s LogisVert or the Québec government’s Rénoclimat can reduce project costs.

It is also important to consider the tax impact of the work. In rental real estate, the distinction between repair and maintenance expenses, generally 100% deductible in the current year, and capital improvements, depreciated over several years, can significantly affect your cash flow. Planning work with these financial aspects in mind helps optimize overall project profitability.

Mistake 6 - Failing to maintain a reserve fund

A common mistake among some owners is not setting aside a reserve fund dedicated to work. Even if many interventions can be planned in advance, such as roof replacement or equipment upgrades, unexpected events will always occur. A leak, uninsured loss, major breakdown, or system failure can happen at any time, even with diligent maintenance. Without a financial buffer, these situations quickly become difficult to manage, especially when your liquidity is already tied up in daily operations. For owners with mortgages, this reality is even more pronounced. Maintaining a reserve fund allows you to absorb shocks, act quickly, and protect your property’s financial stability.

Properly planning work in your rental buildings is a central element of effective property management. By anticipating maintenance needs, accounting for administrative timelines, choosing the right partners, and integrating financial and tax considerations, you can protect the value of your real estate portfolio while limiting unexpected costs.