If you're in the Pacific Northwest, it's an area of quality living, trends, and some of the fastest-growing cities. This provides plenty of opportunity for real estate investors, particularly when you consider cities like Portland.
On average, rental units in Portland generate approximately $1,400 per month. Most investors know the importance of hiring a quality property management company to help them get the biggest return on investment (ROI).
You'll need to ask yourself some important questions so you know what to expect from these pros.
Do property managers pay for repairs? What responsibilities do they have? Read below to get up-to-date on what property management entails so that you can make the right hire.
What Do Property Managers Do?
You probably know that property managers handle rent collection, but they also do so much more. These third-party companies also offer a litany of other services, such as:
- Arranging for repairs and upgrades
- Handling tenant concerns and requests
- Touring the property
- Facilitating applications, background checks, and tenant placement
- Marketing the real estate property
These services are all-encompassing. When you work with a company, you might hone in on specific services that you need, or have the property manager handle it all.
Do Property Managers Pay for Repairs?
In simple terms, no. The property owner is responsible for funding property maintenance and improvements. The fee structure is agreed upon when property owners decide to hire a property manager.
Typically, the owner will establish an escrow account to fund the repairs. This is the account that the rental property management companies will spend from when making repairs.
Owners will also typically set up a threshold for when a conversation is in order before spending the money. This is the case when a repair costs a large sum of money or is an emergency that requires the involvement of insurance companies.
Property managers might shop for estimates and will keep detailed records of the most important repairs. This includes things like electrical, plumbing, and Heating Ventilation and Air Conditioning (HVAC) service.
There are some common HVAC repairs that you'll need to regularly stay on top of, such as making sure every tenant's air filters are changed, and carbon monoxide monitors are checked. Property managers will maintain logs and financial records to optimize the way that business is done.
A List of Landlord Responsibilities
There are many pros and cons of being a landlord, so it's always important that you assess the full picture.
First, the landlord is responsible for anything that keeps the property in good standing. This includes paying the mortgage note, keeping the building up to code, and paying all taxes. The landlord also hires the property management company.
In most situations, the owner will approach the property manager with goals and objectives. This helps to set the rent price and different strategies that are executed.
You need to understand which responsibilities lie with the property management company, and what things you're responsible for. Understand your agreement to know how responsibilities are distributed. You should also know what you're paying in property management fees and what they cover.
Find the Best Property Management
So, do property managers pay for repairs? Now that you have this answer, you can move forward working with a quality property management company.
PMI Bridgetown can assist you with all of your property management needs. If you'd like some insight into the services that we offer, send us a message or call us at (503)765-6505.