If you want to invest in real estate, rental properties are a great choice. You can make a long-term recurring income, but you need to understand what's involved.
Many investors work with property management companies. They can take on various day-to-day duties making things much easier for you. Among these is maintenance coordination.
You may be wondering exactly what this covers. If you're already paying property management fees, do you also need to pay for maintenance?
Keep reading through this guide to find out.
What Is Property Management?
Property management encompasses a range of services that property management companies can provide. Depending on what you're after, you can choose exactly which services you want.
Rental property repairs may be included in this, but it also covers various other areas such as:
- Property marketing
- Property showings
- Tenant screening
- Rent collection
- Lease negotiation
Property management costs vary between different businesses and depend on what you require. Property managers work to streamline processes and maximize your cash flow.
What Is Property Maintenance?
Property maintenance is more specific and only covers any maintenance and repair work on your property. This can vary greatly depending on what's needed.
You should conduct regular inspections and routine rental maintenance to keep your property in good shape. Preventative maintenance is a good way to avoid having to pay large amounts for major repair jobs.
As a landlord, you're responsible for ensuring your property is safe and usable for tenants. They should be able to contact you at any time when maintenance is needed. You then need to deal with things in a timely fashion.
If you fail to do this, your tenants are likely to grow unhappy. This could make them want to leave at the end of their lease rather than renew it. If a lack of maintenance results in any health and safety risks, you may also end up facing legal action.
What Do Property Management Fees Cover?
This will depend on the exact details of your agreement with your property management company, but with most companies the coverage is the same. Generally, property management fees also include routine property maintenance fees.
There is typically a distinction between routine maintenance and major maintenance. Routine maintenance tends to include minor repairs and preventative measures. This includes things such as:
- Lawn services
- Smoke detector testing
- Light bulb replacement
- Move-out and move-in inspections
A property manager may have a rental property maintenance checklist that includes everything they cover.
Major maintenance typically includes large, unexpected repairs. For example, if appliances like the refrigerator or TV need replacing, or the HVAC system stops working.
In most cases, a property manager can coordinate repairs, but it falls to the landlord to pay for them. It's worth noting that property managers have a good understanding of property maintenance, so they can generally find the best companies for any work that's needed.
Reliable Maintenance Coordination
A property management company will cover routine maintenance as your agreement lays out. They can help with maintenance coordination for any major work, but you'll be responsible for paying for larger jobs.
PMI Georgia is a full-service real estate management company in Georgia and the owners have been managing properties for almost 20 years.
Take a look at our property management services page to find out more about what we do.