Home maintenance costs doubled last year, putting a financial strain on investment property owners. Though we can expect to see a modest drop in inflation this year, you may still find your maintenance bills higher than normal.
When you hire a property manager, you can expect plenty of help with maintenance coordination. In fact, the best property managers will take over maintenance altogether.
Will they cover rental property maintenance costs? Not exactly. Read on to learn who pays for rental maintenance in Menifee, CA.
Paying for Property Maintenance in Menifee
What do we mean when we talk about property maintenance costs? Most of the time, we're talking about the cost to hire a professional to handle a specific project. In rare cases, we may be talking about the cost of parts or equipment for DIY repairs.
To cover these ongoing costs, you'll need to use a portion of your rental income. Property managers can help create a realistic maintenance budget and set aside that money as they collect rent each month. That way, you're rarely suprised by unexpected costs that you have to cover out of pocket.
What Do Property Management Fees Cover?
Some first-time rental property investors assume that their property management fees will cover the cost of maintenance. However, property management fees are used to pay the staff who:
- Screen and secure tenants
- Coordinate maintenance
- Take over tenant communication
- Collect rent
- Handle rental property accounting
- Take care of evictions as needed
In other words, the fees you pay to your property manager each month cover the cost of the services they provide. The size of your fees will reflect the number and type of services you sign up for. Hiring a property manager is its own investment because the potential ROI is significant.
Are Tenants Ever Responsible for Maintenance Costs?
California landlords have the right to collect security deposits from tenants at the beginning of their first lease term. Security deposits protect property owners from incurring large costs due to a tenant's destructive or careless behavior. However, California state law dictates how and when you can use a security deposit to cover maintenance costs.
That said, security deposits are refundable assuming a tenant leaves your property with no more than the expected wear and tear. Landlords can, in some cases, charge non-refundable fees that can cover specific maintenance costs. For example, you may choose to collect a pet fee if you allow pets in your rental units.
Get Better Maintenance Coordination in Menifee
Your property manager can do a lot of the heavy lifting when it comes to maintenance coordination. They can help you set a realistic maintenance budget, field maintenance requests, and schedule all maintenance appointments. In most cases, however, the cost of property maintenance should come out of your rental income.
PMI Smarter Solutions provides some of the most comprehensive and customizable property management solutions in Menifee. Whether you only want access to our cutting edge portal or you're looking for a full suite of services, we can help. Contact us to start setting up your property management contract.
