Do You Handle Maintenance In-House or Outsource It?

Question

Curious what everyone’s experience has been when it comes to managing maintenance — especially with multiple doors or scattered-site portfolios.

Some investors I know keep an in-house handyman or small team on payroll, while others outsource everything to local vendors.

What’s worked best for you in terms of cost, quality, and time saved?
Does having your own crew really help with response times and tenant satisfaction, or do the management costs outweigh the benefits?

It’s one of those decisions that can make or break your workflow as your portfolio scales — keen to hear how others are approaching it.

Brett A Brockway · Answer

It's going to depend a lot on how many units you manage, how geographically distant they are, and what the handyman landscape in your area looks like. You'll want to make sure you have a system to vet and hire competent workers on the in-house side, and/or that your vendors are trusted and respond quickly. Some places have outsized supply/demand problems and you don't want to be put on a waitlist for an emergency repair.

For us, it's worked out to have an in-house maintenance team for general repairs and emergencies, and use vendors for specialty jobs or those that require licensure like electrical work and appliances. An in-house team allows us to work on a rolling backlog of non-emergency repairs such as seasonal work while responding to tenant requests and performing yearly inspections, which helps us get ahead of potential issues and keep an eye on the condition of each property.

One thing to consider is the level of management and control/input into the work you want to have. This could be a positive or negative depending on your perspective.

Happy to give additional insight if there's a specific scenario you're thinking of.

Ben Scott · Answer

We currently outsource with our preferred vendors (125+ doors) but I have explored the idea of having a side contractor business and disclosing to the owners that we would be the vendor performing the repair. Kind of white label the contracting side.

But in slow times, not sure I could pay a W2 salary.

John Annunziata · Answer

Handymen are always nice. Are you managing your own properties or managing for others?We have relationships with local vendors who we consistently use and are professionals within their industry. I like this route better than having a handyman to handle properties that I do not own.--John AnnunziataReal360