One thing that needs to happen after determining the company you'd like to manage your rental property is selecting the management tier/program.
As a landlord, discovering that you may be receiving overpriced maintenance bills from your property management company can be both frustrating and financially difficult. According to a survey by the National Landlord Association, 40% of landlords reported experiencing issues with inflated maintenance costs. This situation raises concerns about transparency and can damage the trust a landlord has built with their property management company. Below, we share effective strategies for landlords to address this upsetting situation. By taking proactive steps, you can protect your financial interests and maintain a healthy relationship with your property management company.
Assessing the Situation
When faced with a maintenance bill that appears excessive, it is crucial to carefully review the charges. Thoroughly reviewing the breakdown of charges and comparing them to industry standards and local market rates will help you gauge their reasonableness. According to a study conducted by RentPrep, 30% of landlords have encountered inflated maintenance costs. However, it's important to consider the quality and professionalism of the vendors utilized by your property management company as well, before jumping to any conclusions.
Reputable property management companies understand that it is essential to use only licensed and insured vendors who undergo thorough vetting processes. Surprisingly, a survey by the National Association of Residential Property Managers found that only 42% of property management companies consistently use licensed and insured vendors. This statistic highlights the importance of partnering with a property management company that prioritizes quality and mitigates potential risks. At Rincon Property Management, we ensure that only the most highly qualified local vendors are utilized, at a competitive price point.
It is not uncommon for landlords to ask about hiring an experienced personal connection or a general handyman who offers lower prices. However, unlicensed and uninsured vendors may initially provide a cheaper solution, but if accidents occur or substandard work is delivered, the long-term costs can be substantial. In fact, a report by Insurance Journal revealed that property damage claims related to unlicensed contractors amounted to billions of dollars annually.
We can’t stress enough the importance of selecting a property management company that utilizes only licensed and insured vendors. This ensures that the work is carried out by professionals who possess the necessary qualifications and expertise. Further, it protects you from liability in case of accidents or damages during the maintenance process. The peace of mind knowing that the work is being performed to industry standards and in compliance with legal requirements is worth it.
While it's crucial to address overpriced maintenance bills, it is equally important to recognize the value of paying for quality work by licensed and insured vendors. Ensure that the bill is truly overpriced by these standards prior to reaching out.
Communicate and Seek Clarification
Initiate a conversation with your property management company to express your concerns about the overpriced maintenance bills. According to a survey conducted by All Property Management, 65% of landlords found that open communication helped resolve billing issues. Request a detailed explanation of the charges and ask for supporting documentation, such as receipts or invoices from service providers. By facing your concerns head-on, you can clarify any misunderstandings and seek a fair resolution. A reputable management company will be happy to clear up any misunderstandings or remedy the situation.
Reassess the Relationship
If your property management company is unresponsive or unwilling to address your concerns regarding overpriced maintenance bills, it may be necessary to reassess the relationship. According to a study by RentPrep, 45% of landlords who switched property management companies cited billing issues as a primary reason for the change. Evaluate the overall performance of the company, including their responsiveness, transparency, and adherence to contractual agreements. Consistent patterns of overpricing without justification could indicate larger issues within the company. Should you decide to switch providers, conduct thorough research on potential property management companies, seek recommendations, and carefully review contractual terms to ensure a more reliable partnership.
Addressing overpriced maintenance bills from your property management company requires proactive measures to protect your financial interests. By taking the steps above, you can maintain a healthy relationship with your property management company while protecting your investment.