Despite ongoing efforts to improve housing quality, a 2024 report from the Harvard Joint Center for Housing Studies, analyzed by the Coalition for Home Repair, found that 3.9 million renter households lived in substandard housing in 2021. Notably, this number excluded homes considered physically adequate but still requiring repairs.
Rental property management in South Bend, IN, involves a clear division of repair duties between you, the property owner, and your property manager. Understanding these responsibilities can help prevent confusion and ensure smooth and efficient real estate investment management.
This quick guide breaks down the roles of property managers and owners, focusing on how repair responsibilities are typically handled in South Bend rental properties.
Property Management Responsibilities
Property managers act as the bridge between you and your tenants, handling daily operations such as tenant communication, lease agreements, and property maintenance.
Generally, their role includes:
- Inspection and Maintenance Oversight: Conducting regular inspections to identify potential issues and keep your property in good shape
- Coordinating Repairs: Hiring and supervising contractors for major repairs, such as roof replacements, HVAC system upgrades, or structural repairs
- Obtaining Quotes: Requesting quotes from multiple contractors to ensure competitive pricing
- Overseeing Repairs: Monitoring the progress of repairs and ensuring quality workmanship
- Handling Insurance Claims: Filing insurance claims for damage caused by natural disasters or other unforeseen events
Note that repair responsibilities can vary depending on your agreement with the property manager.
Who Pays for Repairs?
While property managers generally arrange for repairs, the costs of repairs are typically charged to the property owner unless stated otherwise in the agreement.
Let's break this down further:
Routine Maintenance
Tasks such as HVAC servicing, plumbing upkeep, and general wear-and-tear repairs fall under the owner's responsibility. These are part of rental maintenance expenses that keep the property safe and habitable.
Emergency Repairs
Unexpected issues like a burst pipe or a broken heating system often require immediate attention. While the property manager may handle the logistics, the owner is usually billed for these repair costs in Indiana.
Tenant-Related Damages
If tenants cause damage beyond normal wear and tear, property managers typically collect the repair costs from them. However, this requires clear communication in the lease agreement.
The Role of Clear Agreements
A well-drafted agreement is crucial for defining property management responsibilities related to repairs. This document should specify:
- Whether the property manager can approve repair expenses up to a certain limit without seeking your consent
- How emergency repairs will be handled and billed
- The scope of the property manager's duties regarding preventative maintenance
By addressing these details upfront, you can avoid confusion and ensure a productive relationship with your property manager.
Understanding Repair Costs in Rental Property Management
Whether you're new to rental property management or looking to optimize your current setup, understanding property manager duties is key to protecting your investment. While property managers handle many aspects of maintenance and repairs, you, the property owner, are ultimately responsible for covering most rental maintenance expenses.
At PMI Michiana, we're committed to maximizing your rental income and minimizing your stress. With years of experience and a proven track record, we'll handle all aspects of your residential property management, from tenant screening to maintenance.
Get in touch with us to learn more about our services.
