Many real estate investors choose to hire property managers to take the responsibilities off their hands. Between marketing rental listings and evictions, property management can be a full-time job. Most full-service property management services provide extensive coverage in rental property operations, including repairs for property damage, so what is usually recovered?
Key Highlights:
- Property managers are responsible for coordinating repairs related to structural issues, system failures, water damage, electrical problems, and HVAC breakdowns to maintain habitability.
- Repairs and replacements of included appliances, such as refrigerators, ovens, and washers, are managed by property managers, including those in shared spaces.
- Property managers handle pest-related and natural disaster repairs, though costs may be passed to tenants or covered by insurance when applicable.
- Routine and major repairs caused by general use are arranged by property managers to keep the property in rentable condition.
- While property owners fund the repairs, managers may use reserve funds or vendor discounts to lower expenses, only paying out of pocket in rare cases of negligence.
What Are the Repair Responsibilities of Property Managers?
Structural & System-Related Damage
Property owners often leave property managers responsible for habitability maintenance, which means that they conduct repairs for many structural and system-related property damages. That can cover instances like:
- Roof Damage (missing shingles, leaks, structural repairs)
- Foundation Settling or Cracks
- Wall and Ceiling Damages
- Broken Entry Points (doors, windows, locks)
- Water Damage (burst pipes, leaking water heaters)
- HVAC System Breakdowns (cooling units, heaters, thermostats)
- Faulty Electrical Systems
Appliances
Repair and replacement of appliances are also covered, as long as they are included in the rental unit. That can consist of refrigerators, stoves, ovens, dishwashers, washers, dryers, garbage disposals, or other appliances included in the lease agreement. Since property managers oversee the entire rental property, they are also expected to schedule repairs for appliances in the common areas.
Pest Infestation Damage
Sometimes, regular property maintenance won't be enough to prevent pest infestations, as well as the damage they cause. While property managers usually handle the repair responsibilities, the costs can be charged to the tenant if they were behind the issues. In that case, the property manager will simply hire reliable contractors for the repair job, but the financial responsibility won't fall on you.
Damages from Natural Disasters
In the event of a natural disaster, such as floods or wildfires, the property manager is responsible for repair and maintenance tasks, coordinating with insurance companies to discuss covered costs. Note that all minor and major repairs for the rental property will be covered by the property management team, except for tenant belongings.
Normal Wear and Tear
While routine maintenance helps property owners reduce repair costs, normal wear and tear is unavoidable. Some property managers will handle minor repairs on their own, but will often hire contractors to do major repairs and maintenance tasks. It's necessary to do the repair work to maintain the property's condition and attract potential tenants.
Repair Process
Depending on the repair and maintenance issues, it may take a while before they are completed. Property managers will oversee the entire process, starting from determining your repair and maintenance needs, handling tenant interactions, hiring licensed and insured contractors, watching them perform repairs, and settling bills.
Do Property Managers Pay for Repairs?
Property owners pay for the repairs while property managers oversee them. In some property management agreements, the manager may cover costs for minor repairs out of pocket, which will then be added to the monthly costs of the service.
They can also tap into the reserve fund for emergency repairs so the property remains in good shape. The only circumstance where the property management company pays for repairs is if the damage was caused by the property manager, through negligence or otherwise.
How To Reduce Repair Expenses
Your property manager plays a significant role in lowering your repair costs. Some companies already have established relationships with vendors, providing you with discounted and reliable service. It's also important that property managers ensure that routine maintenance tasks are conducted.
Depending on your property management agreement, your property manager can take care of minor fixes without the need to contact professionals. Some repairs property managers cannot do for the sake of tenant safety.
Property Manager Repair Responsibilities FAQs
Do property managers pay for repairs?
- Not usually. They may pay for property repair costs and add it to your property management fees. A property management company will never pay for repairs out of pocket, unless the property manager fails to do their duties and causes the damage.
What are the responsibilities of a property owner when a property manager handles repairs?
- Let your property manager do what you hired them to do. Landlord responsibilities include monitoring the expenses and making sure that they provide you with receipts for the repair costs. However, it is recommended that you set aside cash reserves for emergency repairs that they can access immediately without needing to obtain approval.
What is the best way to avoid property damage?
- One is a proactive approach, such as regular maintenance. This allows you or your property manager to spot issues and coordinate repairs early on before they become worse. Second is vigilant enforcement of lease rules to prevent lease violations that lead to damage.
Does regular property maintenance prevent property damage?
- While it does reduce such scenarios where small issues can lead to property damage, proactive approaches like routine inspections can only do so much. There are still unexpected events like natural disasters, so ensure that your property manager is ready to handle repairs.
Can I delay property repairs?
- Even if your lease agreement mentions a wide timeframe for repairs, property owners need to address them quickly to avoid making it worse. In return, your property remains in good condition, and you can ensure tenant satisfaction.
What if the tenant causes property damage?
- Your property manager can arrange the necessary repairs, but your tenant will have to pay the costs. Review your lease terms carefully, and deduct the costs from the security deposit if it applies. Follow local laws and provide your tenant with an itemized receipt after making the deductions.
CRM Properties Has Your Back
We know how important it is to keep up with maintenance to legal compliance with state and local laws, but just like you, we are aware that maintenance isn't everything.
When a tenant reports maintenance issues, prompt repairs are needed to ensure satisfaction and retention. With our qualified team ready to respond 24 hours a day and seven days a week, you won't have to worry about delays again.
Protect your investment by hiring property managers who are prepared for anything. Contact us now, and let's get started!