No matter where you live or own property, damage is inevitable. Whether you're a tenant or a landlord, you need to know who pays for repairs. Many people assume the property owner pays, but only about 89% of landlords cover the cost of property damage and repairs.
You may be wondering who pays the other 11% of the time. Well, we're here to tell you. In some cases, a rental property management company will fix the damage to your property.
Before making any decisions regarding your lease agreement or maintenance responsibilities, you must consider several factors. Read on to learn when property managers cover the cost of rental repairs.
Clarity in the Management Agreement
Your lease agreement with your tenants and your contract with your property managers will specify who pays for which damages. You must read through these documents thoroughly before signing them.
Your tenants and property managers should be aware of all the information. If one party is unaware or confused, it could lead to issues in the future.
Standard Maintenance vs Major Repairs
The majority of property management companies will cover the cost of standard maintenance tasks. This typically includes lawn care, pest control, and routine inspections.
When it comes to major repairs, such as electrical problems, plumbing failures, and structural issues, the landlord will be responsible. This is standard unless stated in the leasing agreement. It's unusual for a property management company to take responsibility for major issues with the property.
Emergency Repairs
While you may never want to think about something extreme happening to your property, it's vital to have a plan in place. When crafting your property management agreements, look closely at the included provisions for emergency repairs.
In some cases, property managers may have the authority to make immediate decisions in urgent situations. If this happens, the cost will either need approval by the property owner or will stay below the predefined amount.
Tenant Requested Repairs
Tenants may be responsible for repairs that are caused by their actions, such as if a chair is thrown at a window and it breaks.
However, if a repair is needed due to normal wear and tear, the landlord will pay for it.
Property Manager Responsibilities
A rental property management company plays a crucial role in coordinating repairs. They will have connections with contractors in different fields.
If you need a plumber, they will know who to call. You won't have to spend time searching online for reputable workmen. While they oversee the repair process, you will likely be responsible for the payment.
Beyond Breakage with Rental Property Management
It's crucial that you maintain open communication with your property manager and your tenants. Everyone must have a clear understanding of the rental property management company's responsibilities and duties.
Repairs are unavoidable when you lease out your property. Knowing how they are handled and who is financially responsible for them at the beginning of the process is key.
Here at PMI Foothills, we understand the importance of communication and do everything we can to protect our investors. Give us a call today for service.
