Property managers typically do not pay for repairs out of their own pockets. Instead, the cost of repairs is usually paid for by the property owner or landlord, as they are the ones responsible for maintaining the property. Here’s how it generally works:
1. Who Pays for Repairs?
- Landlord or Property Owner: They are responsible for the cost of maintaining the property, which includes repairs for issues that arise due to normal wear and tear or other factors beyond the tenant’s control.
- Tenant: If the repair is due to tenant damage or negligence, the tenant may be responsible for the cost of the repair, depending on the lease agreement.
- Property Manager: The property manager acts as a middleman and coordinates the repairs. They will contact contractors, schedule the work, and handle payment. However, the funds for repairs typically come from the landlord, not the property manager’s personal budget.
2. How Does a Property Manager Handle Repairs?
- Emergency Repairs: For urgent issues (e.g., plumbing leaks, heating problems), the property manager will arrange for immediate repair to prevent further damage or ensure tenant safety. These repairs may be expensive, but the property manager will bill the landlord for them.
- Routine Maintenance: Property managers also coordinate regular maintenance (e.g., HVAC servicing, landscaping, pest control), which is typically part of the owner’s long-term property maintenance plan.
3. Property Manager’s Contractual Responsibilities
Property managers usually have an agreement with the landlord that outlines their responsibilities, including how they handle repairs and maintenance. The contract may specify:
- A budget for repairs (e.g., repairs under a certain dollar amount might be authorized without needing approval).
- The process for getting approval for larger repairs or projects.
4. How the Cost is Managed
- The property manager will typically invoice the property owner for the cost of repairs, often including a management fee for coordinating the work.
- In some cases, if the repairs are under a certain dollar amount, the property manager may handle them without needing explicit approval from the owner.
In Summary:
Property managers handle the logistics and coordination of repairs, but the financial responsibility typically lies with the landlord or property owner. The property manager may pay contractors or vendors upfront but will usually seek reimbursement from the owner