According to Investopedia.com, rental real estate investors should estimate their property's annual maintenance costs at 1% of its value. So, if the value of your property is $300,000, you should ideally be setting aside at least $3,000 from your rental payments for yearly upkeep and repairs. In doing so, you'll always have readily available funds rather than pulling them from your savings account.
But what if you plan to hire a full-service rental property management firm to oversee your Kansas City, MO, rentals? Won't the maintenance and repair expenses be their responsibility?
Keep reading to find all the answers to those questions in this guide compiled by the expert Kansas City property managers at PMI Fountain City.
Don't Rental Property Management Firms Cover Maintenance and Repair Costs?
No, they don't pay for their clients' rental property repairs and maintenance out of their pockets. Landlords and property owners are responsible for the funds needed to satisfy their upkeep and repair responsibilities for rental units in Kansas City, MO.
So, as a landlord, it's up to you to shoulder the costs of your rental property maintenance in Kansas City. For this reason, you must account for these expenses when managing your rental payments.
Also, remember that you can't use your renter's security deposits for routine property maintenance and repair expenses. You can use them for repairs at the end of the tenancy, but only if they arise from conditions that exceed "normal" wear and tear, per the Revised Statutes of Missouri, RSMo Section 535.300.
What Do Property Managers Do for Maintenance and Repairs Then?
While property management firms won't pay for your rental unit's upkeep and repairs, they will still oversee these tasks (and more) on your behalf. They'll help ensure your property is in top condition and meets all building, health, and safety codes.
For example, if you hire PMI Fountain City for rental property management in Kansas City, our expert team will:
- Screen, select, and negotiate with highly experienced licensed building contractors and vendors
- Communicate with your tenants regarding property inspections, maintenance, and repairs
- Schedule regular property inspections and maintenance with vetted contractors
- Promptly book property repair services
- Oversee the work contractors perform on your property
You can also expect our team to facilitate the payments for contractors and vendors. We'll help ensure they get paid on time for the high-quality work and materials they provide for your Kansas City rental.
Ready to Simplify Rental Property Maintenance?
Remember: A rental property management firm won't pay for your Kansas City rental's upkeep and fixes. However, they can still assist by overseeing the payments (and other accounting tasks) for the labor and materials used for your property's maintenance and repair work.
So, if you're ready to simplify the maintenance and management of your rental properties in Kansas City, MO, let PMI Fountain City help! Our owner, Matt Van Boening, brings 17 years of leadership experience and skills he acquired in the insurance sector to the company. We're also part of PMI, one of the country's fastest-growing property management franchise firms that has helped perfect the industry for over 20 years.
Get to know us better and request your free property consultation today!
