You've become a landlord in Boynton Beach, FL. It was a lucrative gig until the maintenance requests began coming in. Now, you feel a little over your head.
You decided to hire a rental property management company to help you tackle your landlord duties and reduce the growing pile of repair requests on your desk. You're also hoping that they'll help you pay for maintenance.
They do that, right? Check out this quick guide to learn who pays for rental property maintenance and repairs.
Do Rental Property Management Companies Pay for Repairs?
The answer here is no. It's not the responsibility of the property management company to help cover repairs. That being said, it is their duty to help you keep repair costs low.
They do this by choosing a reasonably priced rental property repair contractor. They'll also schedule regular inspections and preventive maintenance. This allows them to catch potential problems and fix them before they become too expensive to repair.
How Are the Repairs Paid For?
Since it's not the responsibility of the property manager to pay maintenance fees, you'll have to cover the expense.
The property maintenance company will charge you in one of two ways. You'll have to pay a flat fee every month or pay into a landlord emergency fund.
Flat Fee
Some property management companies will schedule rental property repairs and cover the cost themselves. The catch is that you'll be required to pay them back.
Most companies that operate this way will tack repair costs onto your bill at the end of the month.
Reserve Fund
A lot of rental property management companies will ask that you create a reserve fund account as part of your opening a contract with them. When a tenant requests repairs, your property manager will pull the funds from your reserve fund to pay the bill.
At the end of the month, you'll have to sink some of the rent you collected into rebuilding the reserve fund.
There are some instances where the cost of the repairs will exceed the amount of money you have in your reserved fund. If this happens, your rental property manager will get your permission before proceeding to call the necessary contractor.
Can You Make Your Tenants Cover It?
For the most part, you can't ask your tenants to cover the price of the repairs they need. There are particular instances where it is appropriate to send them a bill.
This is if they cause damage to the property. For example, if they break an appliance because they didn't use it according to the manufacturer's instructions, you can ask them to pay to fix it.
Understanding the Ins and Outs of Repair Costs
Nine times out of ten, if your rental property needs repairs, it will be up to you to cover it. Even if your rental property management team will take care of the bill, you will have to pay them back at the end of the month.
However, as long as you choose the right property management company, they'll do their best to keep repair costs low.
PMI Expert PB has over 20 years of experience helping landlords in Boynton Beach, Florida, maintain their properties. Contact us today to learn more about our services.
