How do Property Managers Handle Maintenance?

Navigating the world of property maintenance can be daunting for many property owners, especially when contemplating whether to hire a property manager. It’s essential to understand the different approaches adopted in the industry.

The common maintenance models that managers employ are:

1. The In-House Maintenance Team Model

2. The Maintenance Mark-Up Model

3. The 3rd Party Maintenance Model

Each model has its benefits and pitfalls. Here, we will explore them and shed light on why FVI Property Management, specifically, chooses its method.

1. The In-House Maintenance Team Model

When property management firms employ their own team for maintenance, they handle a portion of the tasks related to a property. These typically involve routine repairs. Larger firms may tackle a broader range of tasks, while smaller entities might rely on just an in-house handyman. Despite this, most still contract specialized tasks to external vendors.

It’s vital to inquire about their scope of services, their vetting process for service providers, and how these relationships impact you.

Insurance and licensure are paramount. If they are executing large scale tasks in-house, are they a licensed General Contractor? Moreover, ensuring that every service provider is licensed and adequately insured is vital for the safety and protection of your property.

Benefits of The In-House Maintenance Model

• High Control Over the Service: Rapid deployment for emergencies is more feasible.

• Service Provider Knowledge of the Portfolio: An in-house team tends to be familiar with properties, leading to more informed decision-making.

• Vendor Communication and Job Reporting: Streamlined discussions about repairs and decision-making are facilitated.

Downsides of The In-House Maintenance Model

• Profit from Maintenance: This might lead to potential conflicts of interest, as companies don’t want their staff to be idle.

• Limited Specialization: Reluctance to outsource specialized tasks might arise.

• Limited Vendor Access: Availability issues might occur during vacations or sick leaves of the handyman.

2. The Maintenance Mark-Up Model

Here, property managers benefit from the profit margins of third-party vendors. This model involves a vendor agreement, where vendors agree to work at discounted rates due to the volume of work they receive from the property manager.

Benefits of The Maintenance Mark-Up Model

• Contract with Vendor: This ensures a level of accountability.

• Property Manager-Vendor Relationship: A good rapport often means swift and quality work.

• Large Vendor Base: Access to multiple vendors ensures competitive pricing and service availability.

Downsides to The Maintenance Mark-Up Model

• Driving Up Costs: The model can sometimes push vendors to increase prices beyond market rates.

• Conflict of Interest: There might be a temptation to prioritize vendor relationships over owner satisfaction.

• Opaque Fees: Not every manager is transparent about mark-up costs.

3. The 3rd Party Maintenance Model

This is the model embraced by FVI Property Management. We exclusively opt for this because:

• We select vendors solely based on our clients’ best interests.

• We prioritize quality in our vendor relationships.

• We ensure competitive pricing that’s verifiable.

• We champion transparency and always strive for what’s best for our clients.

Benefits of The 3rd Party Maintenance Model

• Aligned Interests: There’s no conflict of interest. Managers have no hidden agendas.

• Diverse Resources: Access to various vendors offers multiple solutions.

• Purchasing Power Pricing: Savings directly benefit the property owner.

• Vendor Relationship: Good service from vendors due to the high volume of referrals.

Downsides to The 3rd Party Maintenance Model

• Less Vendor Control: There might be some inconsistency in the quality of work.

• Potential Attention Gaps: Without monetary incentives, managers might slack in maintenance oversight.

• Diverse Vendor Familiarity: New vendors might lack property history insights.

Many stellar property management firms operate under each model, ensuring that properties are meticulously managed. At Blue Anchor Property Management, our choice of the 3rd Party Maintenance Model is deliberate, aligning with our mission to always prioritize our clients.

If our approach resonates with your values and you’d like to discuss further, please click on the “Contact Us” button below, and one of our team members will promptly get in touch.