Inflation is impacting just about everything in the US, including the cost of property maintenance. In 2022, property owners spent an average of $6,000 on home repairs, emergency maintenance, and improvements.
If you partner with rental property management, your property manager will take over many of your landlord duties. Does this include covering the cost of maintenance?
In short, the answer is no. However, property managers can oversee all different types of maintenance, from preventative to emergency and beyond.
Read on to learn more about who pays for the maintenance of your rental property.
Does Rental Property Management Cover Maintenance Costs?
Your property managers do not pay out of pocket for the cost of maintenance. However, they can help to manage and even reduce maintenance costs by:
- Improving your accounting
- Staying on top of preventative maintenance
- Finding the best vendors and contractors
Your property management company may ask you to set aside a certain percentage of profits each month. That way, you can reinvest money into your property with ease. This includes building up an emergency fund to cover maintenance costs.
Property managers oversee rental inspections and maintenance requests. Addressing maintenance issues quickly can prevent small issues from snowballing into expensive disasters.
Do Tenants Pay for Maintenance?
When tenants occupy your property, they bear some of the responsibility to take care of it. Do they ever have to pay for maintenance and repairs?
To answer this question, it's important to consult Wisconsin laws. Landlords can charge security deposits, which they can claim if:
- Tenants leave the property in a state of neglect
- Tenants cause excessive property damage during their leasing term
- Tenants have unpaid rent, utility bills, or other costs designated in the lease agreement
However, you can't expect tenants to pay for routine maintenance. For example, tenants are not responsible for paying a plumber to fix a leaking pipe. However, you may use their security deposit to cover damage caused by a tenant beyond wear and tear.
How Property Owners Can Prepare for Maintenance Costs
In almost all cases, property owners need to pay for rental property maintenance. If you aren't prepared for these costs, they may push you into debt. To prevent this outcome, make sure to:
- Set aside a portion of your gross rental income for reinvestment
- Invest in preventative maintenance to minimize emergencies
- Partner with reliable contractors
If you're struggling to keep up with these responsibilities, it may be time to hire a property management company. While they won't cover maintenance costs out of pocket, they can help maximize profits.
Hire PMI Property Managers in Milwaukee
As a property owner, your goal is to get the highest rental income you can. However, prioritizing maintenance and the well-being of your tenants is just as important. Rental property management can help you decide when to reinvest your rental income into your properties.
Are you looking for new property management in Milwaukee, WI? PMI is a nationwide company that offers local, customizable solutions. Contact us to learn how our real estate experts can improve your life as a landlord.
