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Property Management Blog

Why an in-house maintenance department makes sense.

Mendell Gosnell - Sunday, January 28, 2018

Why an in-house maintenance department makes sense.

The profitable operation of your rental property requires a sensible approach to maintenance services. One of our jobs as property managers is to see that these services are provided.

Over the years, we have used different types of maintenance vendors.  There are large specialty contractors such as plumbers, roofers, and appliance repair companies.  Smaller versions of these same vendors are also available.  Then there are general handyman services that are somewhat less expensive.  But sometimes these can be difficult to get a hold of and take a long time to schedule a repair.

Since we are required by law and prudence to use licensed, insured vendors on your property, we cannot hire the $10 an hour “street corner handyman”. Also, these people offer false economy when we consider the potential for inefficiency, dishonesty, and liability.

Much experimentation has been done within our industry and our own company as to the best way for handling necessary repairs.  We have found that the best solution is to operate our own in-house maintenance company with salaried employees.  This affords us scheduling control and quality control we would not have otherwise.  We also gain cost savings over outside vendors, although it is still expensive.  The expense comes from wages and a list of other expenses such as:

  • Payroll taxes
  • Unemployment tax
  • Liability insurance
  • Worker’s compensation  insurance
  • Health Insurance
  • Truck and travel
  • Tools and equipment
  • Supplies
  • Training
  • Vacation
  • Cell phone, notebooks, etc…

When the scope of repair warrants, qualified outside vendors are used to keep your property in working order.

Our goal is to provide you savings over outside vendors and cover the costs of operating this department. 

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