Do Property Managers Pay for Repairs?

What happens when a rented-out home suffers a plumbing leak, shingle damage, or structural issues? Who’s the one to pay for the bill? Is it the tenant’s or property owner’s responsibility, or does it fall to the property management company?

Dealing with repairs is one of the most stressful things the property owner and tenant must handle. And as confusing as it is, it’s one of the crucial questions all parties connected with the property have to know the answer.

If you’re a property owner wondering whether to bother the tenants for repair costs, deal with it yourself, or have the property manager on the case, the following blog provides the complete answer. We’ll talk about who’s legally responsible for property repair and maintenance and the primary responsibilities the property managers offer. So, let’s learn how to deal with property repairs quickly.

Who is Responsible to Pay for Fixing Repairs by Law?

Before we answer the question, let’s look at it from the legal perspective. According to Landlord-tenant law, the landlord is primarily responsible for providing tenants with a safe environment based on rent.

If any property issues require repairs, the owner is held accountable for fixing them, given that the tenant has informed the owner beforehand. If no action is taken to resolve the issues, the landlord has breached the implied warranty of habitability. In these circumstances, the court could offer three possible outcomes to the tenant:

• Withhold rent until issue resolution.
• Use rent to fix the issue themselves.
• Sue the landlord for damages.

However, this can only occur if the tenant has informed the landlord; if they fail to inform them or provide inadequate proof that the landlord is responsible for property damage, it could be seen as a violation, requiring the tenant to take full responsibility for the repairs.

Through law, both tenant and landlord can be made accountable for repairs, but the question is where does the property manager fit in the equation. Let’s find out in the next section:

Is a Property Manager Responsible for Paying for Repairs?

Property managers are crucial in maintaining and ensuring the property is habitable for tenants. They are the property owner’s liaisons for tenants. So, the question can arise whether they are responsible for repair payment. If you’re looking for a simple answer, it’s a “No.”

Yes, property managers do deal with keeping property in check and having it repaired, but they aren’t in any way responsible for paying for the repairs. They can deal with routine maintenance like pest control, lawn maintenance, and minor fixes and get the payment from the landlord.

However, in major repairs, such as structural issues, plumbing problems, and HVAC systems, the property managers can coordinate these repairs on behalf of the property owners. These expenses are usually the property owner’s responsibility. 

What About Property Management Companies?

You can say the same for property management companies. Although they don’t pay for repairs, the responsibility of getting repairs done and ensuring the property is safe and habitable falls on their hands.

To streamline the process of property repairs, they can set up a system in which the rental income generated can be used for settling repair bills. It should be known that property managers don’t pay for the repair but instead collect expense amounts from the revenue generated via property.

Responsibilities of a Property Management Company:

Now that you know that a property manager only needs to manage repairs rather than pay them through their own funds, you may be wondering what other responsibilities fall in the hands of a property management company. Let’s take a look at what you can count on them for:

1.      Tenant Relations:

Property managers are the intermediaries between landlords and tenants, addressing concerns and managing complaints to ensure both parties remain satisfied. Any inquiry that the tenant has regarding maintenance and inspection, they are the ones to handle it.

2.      Property Maintenance:

Property managers must also ensure that the properties they’re responsible for are up to code. This is done by ensuring routine maintenance and inspection. They coordinate major repairs through revenue generated to ensure the property is kept safe and habitable for tenants.

3.      Financial Management:

All financial matters related to property can be entrusted to the property manager. They collect tenants’ rent, set rental rates, provide consultation to property owners, and ensure all property financial records are complete and up-to-date.

4.      Legal Compliance:

A property manager may also be responsible for complying with all legal aspects of property management. They must ensure they are well-versed in housing regulations, landlord-tenant law, building codes, and housing regulations. Through this knowledge, they can consult the legal boundaries of property owners.

5.      Lease Management:

They also oversee the leasing process from start to finish. It includes advertising vacancies, screening potential tenants, and preparing the necessary paperwork for executing lease agreements. They ensure that all lease terms are clear and understood.

6.      Marketing:

They are also responsible for marketing vacant units. They take the time to send online listings via social media to attract potential clients. Through it, they prevent any vacancy and ensure a steady rental income for the property owner.

7.      Evictions:

In case a tenant breaches the lease, property managers can also proceed with eviction. It involves following a legal procedure, providing notice to the tenant, and representing the property owner if necessary.

Final Note:

In conclusion, in the debate on who’s got to pay for rented property repairs, a property owner is responsible if the tenant has informed them. However, if you’re wondering if a property management company is responsible for repair payment, the answer is a “no.” Property managers are only required to fix the issues on behalf of the property owner. However, the payment for repairs is made by the property owners.

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