What's your bill for maintenance from Property Management?

Question

I am moving 2 properties over to a management service. Honestly, I think they are going to do a better job than I have. So far they've done a great job and I like the clear billing. I do have one fear. Mostly, my fear is that they won't take care of the properties and I will end up with sporadic larger bills or a worthless property in the end, instead of smaller preventative bills. That being said, I am currently spending A LOT on maintenance each year. Currently, $2800 per year per door is my average annual expense for labor and supplies. Is this normal? My rentals are mostly class C, average rents are $510.

What's been your experience with property management? Specifically please talk to your experience with billing for maintenance? Something like in an average year X is spent a year on my houses for regular maintenance?

Thanks,

Patrick Liska · Answer

normal maintenance ( lawn care or snow removal) usually runs me about 125 / month per SFH. any other issues that need to be fixed will cost extra.

James Masotti · Answer

I'm going to guess that this would vary quite a bit market to market and of course type of house as well and the degree to which it was rehabbed before putting a tenant into it.

There was one of the podcasts, which I can't remember which one unfortunately maybe someone else can include that info, where the landlord would intentionally try to tenant-proof his units by spending money on over-engineered products to ensure they could withstand better. This I'm sure adds to his annual expenses in the short term but will cut them back in the long haul.

On the one property I personally have under a property manager I just looked at my 2010-2014 tax returns and I'm averaging $110 a month on gross monthly rents of $885 and it was renovated before the tenant moved in. This does include a roof repair one year that alone was $1500 though, so that falls more so under the capex budget than it does the repair budget...but I'm including it in these numbers nonetheless.

Fred Dray · Answer

Contact other clients of the PM co and see what they have to say about how promptly they handle maintenance requests.  I would ask them to create a paper trail.  In otherwords, give the tenant a request form to fill out (including date) requesting maintenance and turn in.   Have the PM co forward copies requests to you.  That way you can see how quickly repairs are made.

$2800 a year seems excessive, although a roof could eat up a large chunk of that.  What type maintenance is being done and how much are you paying?  Can any of these repairs becharged back to the tenant for misuse such as clogged toilet?

I work for a PM co and can say from experience any worthwhile PM co will handle things (especially plumbing) ASAP because if not and things become worse, it's more of a headache for them.  So, I think you're fears (property worthless) are not warranted if you researched the co before hiring them.

Jessica B. · Answer

One reason my number might be high is that I am including the cost of turning 2 properties and some roof repair. I had 2 needing major work. But even if I look only at the properties that had no vacancies or big repairs, my numbers are all above 100/month.

Jessica B. · Answer

Thanks!

Sarnen Steinbarth · Answer

I see usually between $50-100  per unit, per month.

SFR closer to the hing-end of that, depending upon what all you consider to be maintenance, age of home, etc.