When you partner with a property manager in Florida, they are responsible for a myriad of duties such as carrying out routine repairs. From peeling paint to blown-off roofs, they’re no strangers to dealing with issues that could risk your property’s value (and your tenant’s comfort). But with them tackling this tedious task, you may be wondering if they’re responsible for covering the bill, as well.
In this post, we’ll answer one of the most common questions we get: “Do property managers pay for repairs”? Plus, we give you the lowdown on common repair tasks that are on your company’s list of responsibilities.
Are repair costs covered by luxury property managers?
Rental property owners benefit from the free time they obtain when they work with Florida property managers. With a dedicated agent dealing with the day-to-day repair tasks, they’re able to use their time on more business-critical matters. And while full-service property managers may oversee most tasks—particularly repairs—that does not mean they cover the costs out of pocket. Put simply, they do not pay for property repairs.
It’s important to note that their job is just to maintain your property’s condition. They’ll tap into their vast vendor network, coordinate repairs, and oversee the work themselves, making sure it’s done well. However, they will most likely not use their own money—instead, they will dip into the property owner’s budget or reserve fund to pay for the bill.
Do rental owners need to establish a budget or reserve fund?
When you work with a property management company, you will have to set a budget, as this will allow them to carry out their services, particularly maintenance and repairs. The budget is carefully calculated by the property management company, taking into account anticipated costs. In addition to that, it’s common for companies to ask you to set up a reserve fund. This is a sum of money set aside to cover the unexpected costs related to the property, such as unexpected repairs and other costs that may arise.
The specific amount to put towards the reserve fund can vary on factors, such as the terms of the contract, the condition of the property, the risk associated with its location, and so on. But don’t worry—it will be a reasonable amount that your luxury property manager will help determine. By maintaining a reserve fund, you’ll be able to handle any situation without suffering from financial strain.
Will property owners be able to review repairs before they’re carried out?
Since it’s your money, it’s understandable that you’d want to know how it’s used. At the start of the partnership, your property management company may ask if you want to put a limit to the amount spent per repair. For example, you may give them the freedom to carry out repairs they deem necessary if the cost is less than $500. That way, they won’t always have to ask for your go signal when conducting minor repairs, allowing them to respond to tenant concerns swiftly.
For other repairs that go beyond your budget, you can request your property management company to run them by you first. So if a particular repair is so expensive, they may inform you about it to run you through your options, get your go signal, and ultimately, ask you to put more money in your fund. In some cases, a property management company may also pay for the repairs if it needs to be done ASAP, but you will have to repay them after.
Are there other costs aside from repairs?
Typically, when working with a property management company, you will pay them a specific fee. Depending on the terms of your contract, you may either pay a flat fee or a percentage of the monthly rent. Note that the money for repair costs is paid on top of this service fee.
Why conduct repairs through a luxury property manager?
While you can carry out repairs yourself, there are many advantages that come with hiring a luxury property management firm:
Established vendor network
Property management companies have been in the business for a long time. By now, they’ve established a list of contractors with whom they’ve worked with, and more importantly, can count on. Their connections allow them to shortcut the time-consuming process of “trying out” service providers, as well as carry out repairs swiftly. And because they’re able to bring business to their partner contractors, they may be able to secure lower rates, saving you money.
Experience with a wide range of repairs
Your property isn’t the only one on their portfolio. A good property management company will have managed many rental properties in the past. This means they can anticipate your property’s needs and reduce the risk of costly repairs. In addition, they’ll know what to expect when contractors do carry out repairs, allowing them to make sure it’s done correctly.
Portal to manage repair requests
Managing a vast rental portfolio can be a daunting task, particularly when faced with multiple repair requests from tenants Fortunately, luxury property management companies come prepared. Not only do they have a team that’s solely responsible for repairs, but most of them use a portal where tenants can conveniently file a repair request. These smart portals sort repair requests to make sure your team deals with the most time-critical ones first. Furthermore, these portals let you and your tenants track repairs in real time, fostering a truly transparent relationship.
Following the completion of repairs, luxury property management firms will provide a detailed report that documents the work that was carried out. This report will allow you to clearly understand how your reserve fund was used.
Let Luxury Property Care tackle all aspects of property repairs. From validating tenant requests to overseeing the work, we’ll make sure repairs are carried out promptly and according to your requirements. With vendor networks across South Florida, we can assure you that your rental property will be serviced only by the best in the business. And since transparency is at our core, you can count on us to provide you with updates prior to, during, and after the repair work.