When hiring a property management company like DenCO Property Management & Sales (DenCO), a perk is having somebody else manage rental property repairs. The agreement between the owner and property management company defines the repair duties and coordination between the two parties. The contract should clearly state a repair cost limit, which means the property manager can sanction repairs up to a certain amount. Any repair or replacement above this amount will require the owner’s permission. An agreed-upon repair cost limit lets property managers handle maintenance issues without delay.
Good property managers have a mixture of reliable, professional service companies to handle appliance, plumbing, electrical, HVAC, and roofing issues. DenCO manages about 150 homes in the Denver area, so we offer contractors a high volume of work throughout the year. Our owners and tenants can expect quick service and competitive rates due to DenCO’s buying power, which is a benefit that is passed on to the client.
How Do Property Managers Pay for Repairs?
DenCO uses the rent income to pay for repairs. When a repair occurs, the vendors bill the property manager. Before paying out landlords, DenCO takes care of all vendor bills, then deducts the amount from the owners’ monthly rent check. Next, we distribute owner funds and detailed statements to the owners.
Emergency Rental Property Repairs
Emergencies that need immediate attention are burst pipes, heating not working in the dead of winter, no air conditioning on a hot day, or blocked drains. The tenant calls their property manager about the problem. We arrange an appointment between the tenant and the vendor to fix the problem. Owners benefit by having their property manager handle all emergencies at all hours of the day and on the weekends.
Managing Large Ticket Item Repairs or Replacement
The most expensive items that might need repair or replacement at a rental property are the roof, main sewer line, and HVAC system. Over time these systems will eventually fail. Owners are obligated to fix these systems to provide their tenants with a habitable place to live. Property managers make sure all appliances are in good working order and eradicate any rodents or vermin in a timely and efficient manner.
The tenant usually notices a problem first and calls DenCO. Anything over and above the repair cost limit will require the owner’s permission. Once approved, the repair or replacement proceeds with the owner being billed directly for the work. DenCO recommends that owners anticipate significant expenses by putting money aside in a reserve account.
Rough Replacement Costs
Roof – $7,500,000 – $20,000
Main Sewer Line – $5,000 to $12,000
Furnace – $5,000 to $10,000
Appliances – $500 to $2500
Repair or Replace?
If an appliance or heating/cooling system continually fails, it might be prudent to replace versus repair the item. Good property managers keep meticulous records of all repairs done on a property to document any recurring problems. They use the documentation to help owners make repair or replacement decisions. It is always better to replace an appliance or system that needs constant work.
Tenants expect all systems and appliances to be in good working order when they move in. Quick repairs keep tenants, and tenants tend to stay in well-maintained rentals. DenCO will only work with owners who meet their obligations stated in Colorado’s Warranty of Habitability laws. We maintain responsible renting habits and effect repairs as needed.