All You Need To Know About the Maintenance Fee for Apartments
January 8, 2019
If you are considering purchasing a residential property either as the primary resident or as a real estate investment plan, you will have to look for a lot more than just the living expenses and the mortgage. Condos and apartments have unique maintenance fees paid every month. The maintenance fee for apartments can be a real financial burden for apartment owners. If you own an apartment and you are looking for a property management company in Piney Point Village, you need to familiarize yourself with the cost of apartment maintenance fees in the area because it will factor in your overall cost.
Property Management Companies and the Cost of Their Services
But this should be among the last details to think about after weighing all the other nuts and bolts of property management. Don’t get me wrong; this does not mean that the cost has the least significance, no. It means that you need more time to think about it because you can actually use the fee to determine the quality of services you are going to receive from the property manager. For instance, if the maintenance fee is significantly lower than in other firms, it could be a strategic move in an attempt to undercut the competition, or it’s the company acknowledging that its services are not high-quality.
More than Just the Price
Either way, you should pass on the company altogether. If a company is charging lower prices than its competition, it usually means that they will try to make up for it by overburdening the property managers by giving them more tasks than they can handle. This will, in turn, lower the quality of services a company can provide as it will be operating with slim margins. Choosing a company that you want to be stewarding your most valuable assets just because they charge the lowest price is a mistake. Besides costs, look at other factors such as quality and scope of the services provided.
Also referred to as common charges, maintenance fees are determined by the building’s board and are billed on a monthly basis. Maintenance fee for apartments cover operating costs as well as expenses such as utility costs for common areas such as hallways and lobbies, doorkeepers, or superintendent salaries, and shared amenities like the gym or swimming pool. Maintenance charges can have a big impact on the cost of an apartment or condominium.
Factors Affecting Maintenance Fees
Maintenance costs vary from one apartment complex to the next. Some factors affect maintenance cost; one of them being the location. People who purchase apartments in trendy uptowns locations are more likely to pay more in maintenance costs than people who opt to purchase apartments in less sought-after areas. The maintenance fee for an apartment has the potential to change the value of property. For instance, properties with less maintenance fees will attract more buyers than those with higher common charges. Nobody wants to pay an additional $1000 for maintenance above their mortgage.
Another factor that could potentially affect your maintenance costs is the services offered in the building. The more the services, the higher the cost. Cleaning, repairs, painting, and vandalism are all factors that can contribute to higher maintenance costs. When you live in a single family home with your own yard and gardens, everything that goes wrong or breaks and needs to be fixed is your responsibility. When you live in an apartment, any damages that may happen outside your apartment are not your concern. That is why you have to pay maintenance costs to take care of these things.
State of the Building
The age of the building is also a huge determinant of your maintenance costs. Some older buildings don’t have amenities such as swimming pools, gyms, fancy lobby areas, or even a lift. This means that the only maintenance fee you are going to have to pay will be from any repair requests, and not even many landlords or property managers will charge you that. Most will just ask you to pay for the damages yourself. Making timely repairs can also reduce maintenance cost as it will prevent the problem from spreading or worsening and reduce repair costs. In some cases, poor maintenance practices are attributable to rising maintenance fees.
Keeping Maintenance Costs under Control
There are some steps tenants and property managers in Piney Point Village. can take to reduce maintenance and keep them from skyrocketing. Property managers and tenants can work together in management activities to minimize the maintenance fee. Through participation, residents will gain valuable insights in how to keep factors that increase maintenance fees under control. Other ways to lowering maintenance costs include:
As a property manager, you should take your tenant’s complaints seriously and make your best effort to provide a solution as fast as possible which reduces the maintenance costs. If you don’t, the tenant will get frustrated and if the frustration builds up, they will start planning a departure. It means a vacant unit that needs to be filled which will cost the landlord a significant amount of money in turnover expenses.
Focus On Tenant Satisfaction
If the tenants are happy with the services provided, there will be less maintenance requests which means less maintenance costs. Less maintenance costs and happier residents will lead to a significant increase in the number of tenants wanting to renew their leases which again reduces turnover costs.
Understand the Laws Governing Housing in the State
Landlords are required to honor the lease agreement which states that they have to ensure that the house is safe and habitable. As a landlord or property manager, understanding these laws will make sure that every appliance in the complex is in working condition which will help minimize apartment maintenance fees.
Owning a rental property goes hand-in-hand with proper maintenance practices. Despite a tenant’s best efforts to prevent damages, plumbing, heat, water, AC systems are going to fail. No need to blame the tenant for such. Plan for these expenses and focus on providing high-quality services to your tenants.