What are your default Authorization limits in Midwest?

Question

Hi,Beginner remote landlord here -- I am having a Property Manager manage my 2 units while I'm away. For Maintenance (which include Life‑safety emergencies, Habitability, Routine maintenance and Cosmetic/deferrable) what amounts do you set when the owner must approve?

Arman Ahmed · Answer

@Vladimir Lukyanov

Hey Vladimir, great question — this is something a lot of remote landlords learn the hard way. In the Midwest, most property owners I know set authorization limits between $250–$500 for routine maintenance, meaning the PM can approve anything under that without reaching out. For larger repairs, especially anything above $500–$1,000, it’s smart to require owner approval. Life-safety and habitability issues (like plumbing leaks, HVAC, or electrical hazards) are usually handled immediately, but make sure your management agreement defines those clearly. The key is balancing quick response times with control over unexpected expenses — having trusted vendors and clear communication upfront makes all the difference.

Chris Seveney · Answer

we do $400.

Adam Bartomeo · Answer

It will depend on the exact area you are in and COG. At $250 we can get almost zero done with an owner approval. Our limit is at $500.

Bill B. · Answer

Life/safety obviously should have no limit. If there’s a gas leak and it’s going to cost $2,000 to fix before it explodes do you want it fixed?

For general repairs/maintenance I use $250. Unfortunately that means a lot of repairs are $250. But hopefully just as many that would have been $225 could have been $275. But the vendors know they can fix it while they are there if it’s under $250.

You need it low enough so they don’t toss $500 at a 10 year old appliance you could have replaced for $600.

Michael Smythe · Answer

Most PMCs have a limit of $300-500.

Amount depends on local costs.

Emergency repairs are typically an exception to this limit.

The real problems are:

1) WHEN an owner is notified about maintenance work being done.- For some reason, many of our competitors don't tell an owner about repairs under the limit and the owner only finds out when they get their monthly statement. We always tell owners as the repair is being done.

2) TRANSPARENCY of costs for work done. - Again, when the charge is under the limit, good luck getting a breakdown of the costs or material receipts.

3) PROOF via before & after pics/videos.- Even on major maintenance work, owners often have to beg for just pics to prove what was done. Not aware of a cell that takes pics that can't also take video, so don't understand why competitors don't share narrated videos like we do.

4) COMMUNICATION seems to be non-proactive.- Many owners hire us and their #1 complaint is lack of communication. While some owners think PMCs are personal assistants and will never be satisfied, there's no reason for not proactively communicating with an owner - especially regarding maintenance!

Vladimir Lukyanov · Answer

@Michael Smythe, thank you!

What are your default Authorization limits in Midwest?

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