If you want to know if property managers pay for repairs, the short and sweet answer is no. However, it's more complicated than a simple 'no' so we've created this guide to walk you through the process.
Keeping your property in good condition by regularly maintaining it and making timely repairs is key to keeping tenants and making rental income.
If you are thinking about hiring a rental property management company, this article will give you an idea of what you can expect in terms of maintenance responsibilities.
Let's dive right in!
Do Property Managers Pay for Repairs?
If you want to hire a rental property management company to take on landlord duties you don't want to deal with, the money you pay them will cover repairs and maintenance.
To be more specific, you'll likely be asked to add money to a reserve fund. As maintenance issues arise, the property manager will use the reserve funds to hire contractors for repairs.
Depending on the terms you have with a property manager, the amount you need in a reserve fund will vary. It's reasonable to add several hundred dollars and then restore money into the fund as rental income comes in.
Property owners can limit the amount of money spent per repair through an agreement with the rental property company.
If a repair is going to cost more than the amount you set, the property manager will ask your permission to repair it first.
Who Makes the Repairs?
Rental property repairs are essential to keeping your property in good condition. Rental property management company repair and maintenance duties include:
- Inspecting the property
- Determining the scope of repair work
- Obtaining approval before making repairs
- Hiring contractors
- Coordinating repairs
- Budgeting for expenses
- Following up with tenants about the repairs
Finding contractors for rental property maintenance and repairs can cost you time and money. When you hire a property manager, they will have an existing contact list of trusted contractors they've worked with before.
You can weigh in on who to hire for repairs by sharing your preferences and experience with contractors in the past as well.
What Repairs Are Property Managers Responsible For?
The exact list of repairs and maintenance tasks that property managers handle will depend on the terms of the management agreement. Typically, a property manager will handle:
- Plumbing and electrical repairs
- Heating and cooling repairs
- Structural repairs
- Exterior repairs
- Interior repairs
- Safety repairs
Proactively handling maintenance with the help of a property manager can lead to lower repair bills by getting ahead of small issues before they become larger.
Is Rental Property Management Right for You?
A rental property owner has a lot of responsibilities to handle on top of finding additional investments to add to their portfolios. Outsourcing your duties, such as coordinating repairs, can take some of that weight off your shoulders.
Although you still have to spend money on repairs and maintenance, property managers can handle everything in between.
Flagship Property Management was built by an investor to cater to investors with unparalleled rental property management services. Since 2007, we've helped property owners like you with our various services.
Contact us today to outsource many or all of your most difficult landlord duties.