The general rental property maintenance rule of thumb is to budget 1% of the property's value for annual maintenance. If a rental has a value of $250,000, spending at least $2,500 a year in upkeep is likely.
If you are a property owner who works with a rental property management company, should you budget for maintenance and repairs, or will property managers pay the price?
Keep reading to learn the answer.
Do Property Managers Pay for Repairs?
Property managers don't pay for repairs but are responsible for ensuring a property is well maintained. Although owners pay for repairs, property managers handle the majority of the maintenance and repair process.
For example, they will schedule repair jobs when a tenant files a maintenance request through a tenant portal or calls the property manager directly.
Some rental property management companies require landlords to set up a reserve fund so that the property manager can pay for repair services.
Some companies will choose to charge extra for maintenance and repair costs accumulated. At the end of the month, owners may receive an itemized bill or pay a flat fee to the company to handle this process.
Can You Make Tenants Pay for Repairs?
For regular rental property maintenance, you can't make a tenant pay for repair work. Tenants should do their part to maintain their rental units to avoid being held liable for damages after they move out.
Some situations that require rental property repairs can be charged to the tenant, such as:
- Damaged appliances from improper use
- Not allowing repairmen and contractors onto the premises
- Willful removal of disability smoke alarms and other safety features
- Overloading electrical outlets by plugging in too many appliances at once
Tenants can fill out a maintenance form, and provide details of the needed repair, and property managers will evaluate the request to see if it falls within the scope of tenant or landlord responsibility.
If the tenant is not at fault, a property manager will schedule the repair and follow up with the tenant once it's completed.
Who Finds the Contractors for Maintenance and Repairs?
Property managers have a list of contractors or can look for a rental property repair contractor as needed. They are responsible for ensuring repair work gets done, so they will find and hire contractors on behalf of a landlord.
Landlords who have had great experiences with contractors in the past can have their property manager call those contractors. You can also request that your property manager not deal with certain contractors.
Work With Rental Property Management Now
A professional rental property management company can take on the various landlord duties, including responding to tenant maintenance requests, ensuring repair work gets done, and hiring contractors.
Landlords are responsible for funding maintenance and repairs that property managers use to hire contractors. There are some cases where a tenant will be held responsible for the cost.
At Chosen Property Management, we have combined decades of experience to handle all of your property management needs. Reach out to our dedicated team to learn more about our services today.
