As your rental properties come because of maintenance and sometimes you get ambushed with emergency repairs, then you might encounter the custom of flat rate pricing whilst amassing quotes.
Flat Rate Pricing
Firms sell it like a customer friendly, up front pricing policy which includes no surprises.
Please be aware that I’m speaking about getting repair work completed (mostly HVAC and plumbing), not about obtaining bids for a significant job – such as a renovation, re-plumbing, tiling, etc. ). This is a totally different discussion on cost.
For minor repair tasks, the benefits to this sort of pricing will be you don’t need to wonder whether the quote for repairs which you have been given will alter storm repair contractors. You’re given an up-front cost and if it requires the tech 30 minutes as intended, or 4 hours, then you pay exactly the same.
Additionally, this is the drawback with this kind of pricing. You’re paying a fixed rate irrespective of the efficacy of the tech. If you locate an efficient, honest, upfront tech, then you’ll likely be paying for your own repairs.
Also, realize that flat rate prices, as promoted to repair and service businesses, is intended to greatly raise their bottom line. Fundamentally they build their own database, or else they purchase software that has prices recorded for each conceivable repair occupation.
These rates are calculated to supply greater gain than when they charged you separately for parts and labour. What’s more, a flat rate cost does not provide you a breakdown on parts and labour, therefore it will become much easier for businesses using flat rate pricing to frequently raise their costs without customer evaluation over where these gains actually came out.
In general, I would not necessarily say you will spend less cash by paying hourly, so this depends upon the technician/company which you utilize. This could possibly be well worth it for those who have not discovered your reliable guy yet, or in the event that you really just do not like surprises.
Nevertheless, it truly is worth it to keep tabs on each the handyman/repair services which you’ve used previously and also to knowingly collect recommendations from additional property managers/investors that are in the know. In this manner, if you want work done, you are not starting out, you have a basis for comparison with all the past job you and your coworkers have had done.