Setting a Maintenance Spend Limit
A common complaint that Property Managers have is not getting a timely response from landlords regarding maintenance of the property they manage. As a result, they are left to face the wrath of unhappy tenants.
There is actually a workaround regarding matters about maintenance and repairs and it is quite surprising that many PMs and landlords are not aware of this — low and behold the Form 6. For those in need of a reminder, the Form 6 (particularly, under Part 8, Section 2) stipulates the maximum value of maintenance and repairs that the agent can spend without prior approval from the landlord.
It is recommended that the landlord agrees to allowing the agent to spend up to the equivalent of 2 weeks rent. So why is the equivalent of 2 weeks rent being recommended?
If you refer to section 219 of the RTRA Act, a tenant may spend up to 2 weeks rent for repairs that are considered as emergencies. Now, as it is the obligation of the property manager to manage your property, would it not be fair to both your agent and tenant if you pro-actively provide solutions to afford your property managers the same allowance?
Indeed, seeking approval prior to maintenance is deemed as a standard operating procedure to most landlords and agents, however, if you take a look at the bigger picture, you will see that by using the Form 6 in the instance of maintenance will likely result to less tenancy disputes and complaints resulting from maintenance taking longer than what is considered reasonable.
As a lessor, certainly, you would want a smooth-sailing management of your property. To achieve this, you must also consider taking away as much stress from your agent as possible for them to be able to do their jobs with ease and efficiency.
By setting a maintenance spend limit, what have you got to lose, really? The property manager is not under stress, your property is well-maintained and, most of all, your tenant is happy. Isn’t that what’s most important?
