About 34% of the households across the U.S. are being rented out, but how many of them are getting top dollar for their property rentals? It can be overwhelming to navigate how to learn your way around rental property management for one or more properties without support.
This is why hundreds of thousands of property owners are turning to property managers...to learn how to do it right. For those that are looking to work with a property manager, they often have a few questions with one of the most popular being..."Do property managers cover repair costs?
Keep reading to learn the answer.
Do Rental Property Management Companies Cover Repair Costs?
Before listing a property for rent, property owners will often go through research. This could include assessing the best ways to list properties.
It could also include how to sustain renters using their properties, and outlining their need for rental property maintenance. On average, each year, a 2,000-square-foot home is going to cost around $2,000 in maintenance costs alone.
Routine rental property maintenance is one thing but repairs are another and can't be predicted. Something like this has property owners asking..." Would a professional property management company cover repair costs if they are taking over management?"
The simplest answer is 'yes ' and 'no'. The best way to think about this is that the rental property management company doesn't actually own your property. They are simply managing it on your behalf. Essentially, you as the property owner will be covering any costs associated with your rental property repairs.
How Would That Work?
Most of the time, what you pay for in rental management repair costs would be included or added to the package. What this would look like would often be a separate reserve account to cover unexpected incidents.
There could also be a portion of your management package specifically allocated for both maintenance and repairs. It will depend on what the company offers.
If any repairs exceed what you have already prepaid to cover your emergency reserve, the property management company will consult you. The company will also handle getting quotes for the work that needs to be done, and get your permission and payment before the repair work starts.
What Are the Benefits of This?
When investing in real estate, you get the fastest ROI when you learn how to delegate. The primary advantages that using a property manager offers are:
- A decrease in tenant turnover
- Hands-off marketing, operations, repairs, and general management
- Reducing the chances of late rent payments from tenants
- Ability to fill your rental properties more quickly
While you will be the one to front the money for any potential repair costs, the property management company will handle all of the groundwork from there. This includes sourcing the service provider and ensuring the work is done well and that the service is paid for. This allows you to remain hands-off and is just another thing on the long list of advantages of using professional management services.
Take One More Thing off of Your Plate
If you are considering putting your property up for rent in Louisiana, don't do it blindly. Owners often overlook opportunities that would allow them to make their journeys to enhance their real estate portfolios more successful.
Using a rental property management company means that you can be hands-off with maintenance, outreach, and repairs. These professional services give you more time to focus on acquiring additional properties or doing what you enjoy.
To simplify your approach to managing your rental, get a free rental analysis and let Lafayette Property Management Inc. do it for you.