Hiring rental property management does not mean you can take a hands-off approach to your rental property. You need to track its performance to ensure you generate a positive ROI. One of the biggest detractors of profitability is repair and maintenance costs.
It would be nice if your property manager paid for the rental property repair costs. Let's find out what you can expect when your rental property needs work.
Contract
In short, your property manager does not pay for your rental property's repairs out of their pocket. You pay them to perform rental property inspections and arrange for someone to do the work needed. The owners are responsible for paying the rental property contractors for their services.
The signed property management agreement states how repair and maintenance costs are handled. Some property managers charge a flat fee, which could include specific tasks.
This could lead you to think the property manager pays. However, the cost of these tasks gets built into your fee.
Repair Fund
Your property management agreement may have you put money into a repair fund account. Typically, this will be a couple of hundred dollars. This allows the property manager to perform common rental property repairs without contacting you.
As repairs get done, the fund depletes. The property manager will provide you with an accounting and ask that you replenish the fund.
This fund is not designed to pay for extensive repairs, such as a tenant's pet causing damage throughout the home. The property manager will contact the owner with a repair estimate and discuss the options in this situation.
Monthly Billing
Some property managers will bill tenants for maintenance and repair services provided. This method doesn't need you to have money sitting in a fund. However, it does need owners to have a more active role because they will need to pay the vendor invoices.
Emergency Repairs
If your rental property requires emergency repairs, a property manager may not wait for your approval to perform necessary maintenance. Landlords are required to maintain habitability for their tenants, which requires immediate action for some repairs.
Examples of repairs that must be addressed immediately include a broken HVAC, inoperable plumbing, or lack of electricity. The property manager may be unable to wait to speak with the property owner, or they risk violating Texas landlord/tenant law.
Tenant Repairs
Some rental property maintenance and repairs qualify as the tenant's responsibility. The tenant will pay for these tasks. The maintenance and repair tasks the tenant must perform will be outlined in the lease agreement.
Hire Rental Property Management Services
When you hire a rental property management company, they take the tasks required to repair and maintain your property. They don't take over paying for your rental. How your property handles the payment for your property's repairs will depend on your agreement.
At Monte Davis Property Management, we work with property owners to help them maintain their rental properties. Our extensive network of contractors ensures that each maintenance and repair need gets addressed promptly.
Protect your rental property investment by trusting the experienced team at Monte Davis Property Management.
