Today’s question is, how does maintenance work for my Denver house? Hi, I’m Matthew Whitaker with Evernest. And I want to cover a topic that most people ask us, it’s one of the hot topics. How do you handle maintenance at your houses when you’re managing them?
We consistently get maintenance as the reason tenants move from houses.
When we survey tenants, and we do from time to time, they say that the reason they move is that maintenance is not taken care of quickly.
Now, that doesn’t necessarily mean that our houses, although we have made that mistake before, tenants are saying, “Hey, if something’s broken, I think it ought to be fixed in a reasonable manner or in a reasonable time period.” Now, obviously, I’m going to get into a little bit of that as we walk through the steps.
But let’s just all agree that it’s super important that the biggest expense you can have in this business is tenant turnover.
And the biggest way you can keep that from happening is by taking care of maintenance issues really quickly. So let’s take a look.
Now, a lot of people get confused about this. This is your money and we keep it in our trust account for you.
So, we keep a $500 reserve that, again, is your money, and we will pay for any maintenance issues out of that $500 reserve.
So, let’s say you have a maintenance issue that’s 200 bucks and then the tenant pays rent again.
We’re going to take the first 200 and refill your maintenance reserve to $500.
And then we’re going to disperse to you everything in excess of that and of course our fees. So, it’s important to note that, first, we keep a $500 maintenance reserve.
Now, we also have a $500 maintenance limit, which means anything below $500 we’re just going to go out and handle the work ourselves.
This falls under reasonability and how important it is to get it done quickly.
And those small items are items we’re just going to handle and then charge your account.
So, that would be like that $200 one I was just talking about. So, let’s say a toilet break, it cost, you know, 100 bucks to get it fixed.
We’re going to go out and knock out that work. You’re never going to know about it until you see it on your statement.
So, those are kind of smaller work orders, anything below 500.
And this is going to be, you know…and the water line running to the toilet and the sewer line.
So, it’s going to be something big. We’re going to create an estimate that we’re going to send to you.
But let’s say it’s not affecting health and safety, maybe there’s another toilet they can use.
We’re going to send you an estimate, let’s say it’s, you know, it’s above 500. So, let’s say it’s $600.
And then you’re going to have the ability to approve that work or decline us doing that work.
This would be the case if you had your own plumber that you would go get them to give you an estimate or use our estimate to give them an estimate.
Or most of our owners just say, “Hey, go ahead and do it,” because they know how important it is for us to get to these work orders fast. And certainly not having a toilet would be a big one.
Now, if there’s something above $500 but it affects health and safety, so we consider it a threat to the tenants’ well-being or we consider it a threat to your house, we’re going to do our best to go ahead and fix the issue, at least stop the issue from getting any worse.
And then we’re going to put together an estimate after that.
So, there are cases where we may go above $500 on a health and safety type issue.
But those are super, super, super rare but it does happen, so you need to know that. too.
If we go out and we fix something, and we have to go out and fix the same thing in less than a year, you’re not going to pay for that.
So, a lot of people, a lot of our clients really like that because they know that, “Hey, once we fix it, we’re not going to have to…you’re not going to have to pay for it again.”
If you hire a third party, you may or may not be able to find them again, may or may not be able to get them out there again.
If we do it and we handle it, then we’re going to guarantee the work.
Keeping tenants happy, keeping them in your house, keeping them paying the rent.
We did a video one time on how to keep a tenant 10 years and this was one of the key issues, was how quickly we were getting to maintenance work orders.
And so, I just wanna stress to you how important that is. And I appreciate you watching how evernest handles maintenance work orders in Denver. My name is Matthew Whitaker with evernest.
Matthew is the CEO of Evernest. He is a student of the book Good to Great and is passionate about building the best property management company on the planet (and maybe even the universe if Elon Musk will hurry up). You can usually find Matthew at the baseball field with his son, at a dance recital with his daughter, or at his favorite restaurant with his wife, when he’s not in the office. And if you can’t find him in any of those places, it probably means he’s traveling.