Nobody enjoys overpaying for repairs. But determining what “too much” means can be tricky since value is subjective. One key concept to understand is the Value Triangle, which consists of Price, Quality, and Speed—you can only choose two. I made a brief video discussing this, which you can view here.
In a recent survey, a few clients mentioned that they feel the vendors’ prices have become somewhat too high.
When we looked into it, we found that some plumbing bids were just too high. We stopped using that plumber and brought in a few with better prices. In other cases, the bids were fair for the market, but clients still thought they were too high. When this happens, it’s usually because of one of four reasons:
Our Vendors Charge Too Much: It’s possible that some vendors are overpriced. We strive to reduce prices where we can by always trying to use affordable vendors when this happens.
Rising Costs: Prices across the board have increased, affecting repair costs.
Poor Value Communication: There’s a saying, “Value is not received until value is recognized.” We need to communicate the value of our services more effectively.
Unrealistic Expectations: While DIY or cheaper handymen might seem like cost-saving options, they often lack reliability, quality, and proper licensing.
To understand these factors better, I delved into the plumbing industry, one of the most common trades in rental management.
If you need help managing maintenance costs for your rental, our Orange County property management company is here to assist. Give us a call at (949) 892-1505. Whether you need an Irvine property management expert, Anaheim rental manager, or Huntington Beach property management company, our team helps landlords navigate repair expenses while keeping their investments profitable. Contact us today to simplify rental maintenance.
Table of Contents
General Trends
Labor Costs: Attracting skilled workers requires better pay. Apprentice plumbers start at $22 an hour, and journeymen earn $28-$35 an hour. Meanwhile, fast-food workers in California make at least $20 an hour. It’s clear why many prefer safer, easier jobs over hazardous trades for similar pay.
Material Costs: Prices of essential materials like copper have soared—from $1/foot to $5/foot. Construction iron and steel prices have increased by 83%, and water heater prices have doubled since 2018, with annual increases of 8-18%.
The Home Depot Query
Clients often ask, “Home Depot charges $X for a water heater, why does your plumber charge more?” Here’s why:
Quality of Material: Water heaters from plumbing supply warehouses use higher quality metal components versus Home Depot’s plastic parts, offering longer lifespans and better value.
Customer Support: Plumbing stores provide parts faster, often by the next business day, unlike Home Depot’s weeks-long wait.
Availability: Supply houses are open 24/7 for emergencies.
Why Not Hire a Handyman?
Other Cost Drivers
Regulatory Changes: The strict environmental regulations in California, including those on ultra-low NOx emissions, have escalated the costs of compliant products and services.
Insurance Costs: California’s insurance crisis and litigious environment have led to higher premiums.
Fuel: Often a service call involves driving to the property to assess the situation and parts needed, then a stop to the supply house, then back to the property. According to the EIA, gas has gone up 29% since May 2021 to May 2024.
In Summary
Maintenance costs are going up because of rising material prices, labor costs, and new regulations. These changes affect the balance between cost, quality, and speed. We always look for the best vendors who provide top-notch work without breaking the bank. By sharing this information with our clients, we hope to build understanding and keep delivering high-quality service.
If you have questions about specific trades or repairs, please let me know. Your feedback helps us create valuable content and provide the best service possible.
Hiring a Property Management Company
If you’re looking for a reliable property management company to help you rent your Orange County rental property and stay compliant with all the local, state, and federal laws and regulations, consider working with Good Life. We have over 10 years of experience in the property management industry and have managed over 1000+ properties. We service all of Orange County, ensuring landlords in every city receive expert support. Whether you need a Fullerton rental property manager, Costa Mesa property management company, or Newport Beach real estate manager, our team is here to help you manage maintenance costs efficiently and protect your rental investment. We make owning rental property easy.
Steve Welty
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