A repair threshold gives our team authorization to initiate and approve work from third-party service professionals up to the amount you set. You are always in control of this number and we never want you to feel outside of your comfort zone.
What Is a Reasonable Repair Threshold?
Setting a reasonable threshold is important for ensuring your tenants have a great maintenance experience. Low thresholds create unnecessary delays due to the approval process. Our average customer has a maintenance threshold of $350 and an emergency threshold of $750.
Can Hemlane provide a bid prior to supplying a threshold?
The minimum threshold of $150 still applies. Many trades (e.g. handiwork, plumbing, electrical) have service call fees and therefore a minimum is still required. In addition, we looked through thousands of maintenance requests and found the vast majority of jobs (where you would want to be more passive) are around or just over $150. This section tells you why a threshold under $150 actually costs you more in the end.
Once we have this threshold, then we confirm bids. Anything over that amount will be submitted to you for approval prior to having any work done.
Does Hemlane Have a Minimum Threshold to Initiate Service Professionals?
Yes. Our threshold policy is as follows:
- Standard thresholds: $150 minimum, $350 recommended
- Emergency thresholds: $500 minimum, $750 recommended
With a $0 threshold, Hemlane will not initiate service professionals and may reassign the maintenance request to you if our team cannot get in touch with you.
Here are two reasons why very low thresholds are not a good idea:
- They require you to be on call during scheduled visits. If your threshold is $150 and a service call is $75, we will send out the service professional. If the cost exceeds your threshold and we cannot reach you for approval, the service professional will leave and still charge the service call fee. This results in multiple trips, frustrated tenants, and multiple service call fees.
- They slow down the speed of repairs. When the threshold is set to cover most repair requests, we can begin scheduling immediately. Faster responses increase tenant satisfaction and free up more of your time.
Can Hemlane Provide a Bid Before I Set a Threshold?
The minimum threshold of $150 still applies. Many trades such as handywork, plumbing, and electrical have service call fees, so a minimum is required regardless. Once a threshold is in place, we confirm bids and anything over that amount will be submitted to you for approval before any work is done.
What Happens If the Repair Cost Exceeds My Threshold?
If a repair costs more than your threshold, the third-party service professional will call you for approval. If you are unavailable to take the call, they will not perform the work.
Please note: If we initiate your own service professional, they may choose not to call our team for authorization. In these situations we are unable to intervene and you remain responsible for the bill.
Does Hemlane Share My Threshold With the Service Professional?
With few exceptions, no. During the appointment, we ask the service professional to call us with their diagnosis and estimated cost. We then compare that cost to your threshold and either approve the work or ask them to contact you for additional authorization.
Does Hemlane Push Back on Costs Even If They Are Under the Threshold?
Yes. If our maintenance coordinator believes an estimate is too high, even if it falls under your threshold, they may inquire further about parts versus labor and other factors. We are always on your side.
Can I Set a $0 Threshold?
Yes, but keep in mind that with a $0 threshold our team can only troubleshoot with tenants. After that, we must wait for additional approval and authorization from you before any work can proceed.
Why Does a Threshold Under $150 Actually Cost More in the End?
Based on data analyzed across all of our rental units, a threshold under $150 tends to cost landlords more in the end. Here are three scenarios using an example where the landlord's threshold is $100 and the estimated repair bill is $101.
Scenario 1: Landlord Approves the Estimate
The outcome is the same regardless of whether the threshold was $100 or $150.
Total cost: $101
Scenario 2: Landlord Approves but Is Unavailable at Time of Visit
The service professional goes onsite and estimates $101 total including the service call fee. Hemlane calls the landlord for approval but cannot reach them. The service professional leaves and charges a $65 service call fee. The landlord approves later, the service professional returns, and completes the work.
Total cost: $166 ($101 to fix + $65 for the first service call)
Scenario 3: Landlord Does Not Approve and Requests a Second Estimate
The first service professional goes onsite, estimates $101, and Hemlane calls the landlord for approval. The landlord declines and requests a second opinion. The landlord is charged the $65 service call fee. A second service professional goes onsite and estimates $90 to complete the job.
Total cost: $155 ($65 + $90)
Beyond the added cost, it is worth noting that tenants are often frustrated when a smaller repair requires multiple visits or multiple service professionals. A threshold of $150 covers most reasonable service fees for licensed and insured professionals, including plumbing and electrical, and opens the door to faster, higher quality appointments.
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