Owning a property is a wonderful way to make passive income, but maintaining it isn't cheap. Homeowners, on average, spend as much as $6000 per year on their maintenance and repairs.
In finding a way to reduce the burden of these expenses, many property owners turn to a rental property management company. There is an assumption that part of their services covers maintenance and repairs. But is your property manager really responsible for eating the cost?
Today, we discuss how you can expect to split the bill with a property management company in San Antonio, TX.
Does Rental Property Management Pay for Repairs?
So, if you hire a property manager, how much of the cost of repairs will they cover? Unfortunately, in most cases, they won't pay for anything. Landlords are expected to maintain and repair things to keep a healthy and habitable place for tenants.
There may be a special agreement depending on the types of services you contract with a property management company. If you aren't sure, ask them or check your agreement. There may be a stipulation about when they pay some or all of the cost in uncommon situations.
Regardless, after learning this information, you shouldn't then neglect to care for the property and cut back on maintenance. Law and regulations aside, repairs and maintenance keep property values high. Focus instead on maximizing rent collection to offset the cost.
What About Scheduling Repairs?
Even though your property manager won't shoulder the cost, they will handle everything else. They will carry out a regular property inspection and communicate with you if it needs repairs or maintenance. Then, they can arrange an appointment and negotiate a price with their list of reliable, affordable contractors.
They can make sure the contractors actually arrived and did the job correctly. Then they'll follow up with the tenant to ensure whatever needs fixing stays fixed and send you the bill. While they may not be paying for the repairs, their work could prevent you from overpaying or losing money on a bad deal.
In extreme situations, such as the tenant causing serious property damage, they can help carry out an eviction.
Is Property Management Still Worth It?
The answer is a resounding "yes!" Time is more valuable than money, and that's the greatest benefit of a property management company. Your property manager tackles all the daily minutia, saving you many hours over the course of a year so you can devote them to something else.
It's important to understand that your property manager is handling the tedious, clerical work associated with an apartment they'll never own. The sort of responsibilities you have as a property owner will always be different. Some of these things - like the financial loss from property damage - will always be in your wheelhouse.
Find Property Management in San Antonio, TX
So, does a rental property management company cover the cost of repairs? Unfortunately, in most cases, they do not. However, they can help in many ways to keep the cost low and streamline the process.
PMI San Antonio in San Antonio, TX, has 20 years of industry experience. We provide full service and use state-of-the-art technology. Get a free rental analysis with us.
