80: Rookie Reply: How Does Property Management Handle Maintenance?

This week’s question comes from Bryan on the Real Estate Rookie Facebook Group. Bryan is asking:  How do PM (property management) companies handle maintenance? Do they fix the issue and submit invoices to the owner or withhold the amount from monthly payments to the owner?  

This is a great question for those who want to transition from self-management to hiring property managers. Both Ashley and Tony have the same type of payment setup with their property managers, but it can vary company to company.

Here are some answers/suggestions:

Both Ashley and Tony have a maintenance threshold for small repairs

Anything over the threshold needs to be approved

One the job is done, the cost is deducted from the rent 

You can always go with a PM’s repair/remodel bid, but it may save you money to hire an outside contractor you know and trust

Try and get PM companies with software, so you can see the exact invoice online

And more in the episode…

If you want Ashley and Tony to answer a real estate question, you can post in the Real Estate Rookie Facebook Group! Or, call us at the Rookie Request Line (1-888-5-ROOKIE).

Check the full show notes here: https://www.biggerpockets.com/rookie80

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