If you own a rental income property in Phoenix, you know how taxing it can be to perform the duties of a landlord. You hire the services of a property management company to make it a smooth sailing for yourself. You pay a fixed commission to this company for taking care of your property and your tenants. But you feel that they are charging more money in the name of repairs and maintenance. Expenses on repairs and maintenance of an investment property often result in a bit of friction between landlords and property managers. As a landlord, you should expect a reasonable amount on expenses incurred to keep it in a good condition.
Setting aside a part of monthly rental income
Disputes between landlords and their property managers over bills of repairs and maintenance are not uncommon. Landlords feel they are being milked on the pretext of repairs. Their managers are presenting artificial and inflated bills on repairs only to make more money. But if you have been a landlord before, you should have a rough idea of monthly expenses on repairs and maintenance in your rental income property. The best way to meet these expenses is to set aside a portion of your monthly rental income. If you treat these expenses as necessary expenses that are a part and parcel of any investment property, you will not feel bad when your manager presents you with a bill on repairs.
Clause on repairs and maintenance in the contract
It must be understood by you that your manager needs to undertake emergency repairs on the spot without asking for your permission. However, you can make a request to be informed about frequent repairs and ask for submission of all the invoices to know about the expenses that have been incurred.
Hiring a manager who you can trust
It is prudent to finalize a contract for managing your property only with a company that you can rely upon. It is your right to expect total honesty and transparency from your property manager when you are paying his fee every month. You should select the property management company after careful deliberation.