At least 95% of business investors fail. This failure rate is caused by a variety of things. However, underestimating maintenance needs is one of them because maintenance can equal a small percentage of the value of the property each year.
This can be an issue for investors that over-extend themselves and take on multiple properties in their portfolio. This is why investors are utilizing rental property management to take over the different aspects of overseeing the properties they want to rent out.
Because property managers take over all aspects of rented space, investors are wanting to know if they pay for maintenance. Keep reading to find out the answer.
Do Property Managers Pay for Maintenance?
Working with a rental property management company means that you become more hands-off. This can involve tenant selection and screening and even expert marketing needs. One of the main benefits of working with real estate maintenance specialists is what they do for your maintenance needs.
Property managers take over rent collection and financial management. They can also oversee property maintenance repair and pay for them. The short answer is that yes, they do take care of repair needs.
However, the property pairs that they cover aren't fronted by the management company. In simple terms, it's all repair costs are covered by you as the investor.
Most management service companies will prepare and cover a maintenance bill that comes up with one of your tenants. The money used to cover these costs is usually taken care of from a reserve charged to you as the investor.
This may be a certain sum the property management company charges you at the beginning of a contract. It could also be taken care of as maintenance issues arise.
Basically, you, as the investor, are in charge of paying for repairs that arise, but the management company will cover the repair needs with the money you pay out of the reserve you set up to cover repairs throughout a tenant's lease.
What Types of Repairs Do Rental Property Management Companies Take On?
The types of repairs a management company takes care of will often depend on the package that you have with them. For example, a full-service company will often take care of any type of repair that arises.
The general rule is that all property repairs are going to be handled by a management company. This is unless the packages they offer state otherwise.
Overall, maintenance companies will cover three primary types of maintenance. These primary areas will consist of preventative, corrective, and routine maintenance. While the costs will be your responsibility, you won't be responsible for handling the repairs directly.
Taking the Difficulty Out of Property Maintenance
Using rental property management means that you don't have to handle repairs. Maintenance needs can take up a large chunk of investment budgets.
This can be overwhelming for a lot of new investors. However, this is why so many investors are handing off their repair management duties to a full-service company.
To streamline the way you run your property, find out more about maintenance services offered by Property Management Inc.
