Excessive "Make Ready" Costs from Property Manager

[Ed Lopez]

Hello,

I've had some issues with excessive costs through my property management company over the years.  I'm a passive investor and these properties are in a different state than I reside in so I'm not there in person often.  These properties typically turn over once a year as they are mostly student rentals.  I put a significant amount into bringing all the units up to par when I purchased them several years ago and revisit anything that they need annually so there is no deferred maintenance.  This year I received a bill from the PM with the following line items and costs: 

- Bathroom 1 : Shower/Tub Caulking | Re-caulk tub
- Bathroom 1 : Toilet bolt caps | Missing bolt cap
- Bathroom 1 : Window Covering | Missing miniblinds
- Bedroom 1: closest to the front door : Door/Knob/Lock | Door know needs tightened
Needs deadbolt installed
- Bedroom 1: closest to the front door : Window Covering | Broken miniblinds needs repaced
- Kitchen 1 : Wall/Ceiling | Pull nails and spackle
- Living Room 1 : Wall/Ceiling | Nail and holes in paneling
- Living Room 1 : Window Covering | Miniblinds need repaired

Line Items
Description Amount
Macomb Glass Invoice $40.99
Sherwin Williams Invoice $40.60
Walmart Invoice $62.37
Total $2,271.27

1 of 2

Ace Hardware Invoice $82.93
Ace Hardware Invoice $28.33
Ace Hardware Invoice $42.50
Macomb Glass Invoice $188.58
Walmart Invoice $135.30
Ace Hardware Invoice $65.19
Ace Hardware Invoice $9.78
Shop Supplies $3.00
Labour hours 24.18 @$65 rate $1,571.70
Total $2,271.27

This is a very small, one bedroom apartment in a fourplex.  I'd like to get other investors takes on these repair rates.  24 hours of labor seems excessive to me and $65 per hour seems excessive for non skilled labor.  These repairs are through a contracting company owned and operated by the PM.  When I inquired if they charged a flate rate per job, they said no, actual hours the jobs take.  I asked for actual days and times the repairs were done and they came out to 1/2 of the hours charged so I'm assuming they are using a 2 man crew and charging $65 per worker.  Here is another example.  

This is a small 3 br house.

Work Order Instructions:
- Entry 1 : Security/Screen Door | Replace Exterior Door Screen
- Entry 1 : Wall/Ceiling | Spackle and paint
- Bathroom 1 : Door Stop | Replace door stop
- Bathroom 1 : Light Fixture | Replace bulb
- Bathroom 1 : Shower/Tub Caulking | Re-silicone tub
- Bathroom 1 : Toilet bowl/lid/seat | Replace toilet seat
- Bathroom 1 : Toilet Paper Holder | Replace toilet paper holder
- Bathroom 1 : Tub/Shower | Relay loose shower tiles
- Bedroom 1: closest to the front door : Closet/Door/Track/Shelving | Install Closet Rod
- Bedroom 1: closest to the front door : Light Fixture/Fan | Fan light does not work - replace fan
- Bedroom 2: 2nd closest to the front door : Closet/Door/Track/Shelving | Replace closet rod
- Bedroom 2: 2nd closest to the front door : Window Covering | Replace blinds
- Bedroom 3: furthest from the front door : Switch/Outlet | Install smoke/CO detector
- Bedroom 3: furthest from the front door : Window Covering | Replace blind
- Dining Room 1 : Window Covering | Replace Blind
- Hallway/Stairs 1 : Light Fixture | Replace bulb
- Hallway/Stairs 1 : Other | Replace blind
- Kitchen 1 : Window Covering | Replace other blind
- Laundry Room 1 : Light Fixture/Fan | Replace bulb
- Living Room 1 : Switch/Outlet | Replace Outlets
- Living Room 1 : Window Covering | Replace Blinds
- Basement 1 : Light Fixture/Fan | Replace bulb
- Systems 1 : Thermostat | Reattach thermostat

Line Items
Description Amount
Labour hours, replace several blinds, screens, door stopper, replace toilet seat and toilet paper holder, reset shower
tiles, install closet rods, replace necessary bulbs, smoke detectors and outlets, touch up paint

$2,096.38

Shop Supplies $3.00
Ace hardware invoice I51016 $44.64
Ace Hardware I50619 $53.69
Ace Hardware I50569 $43.57

Total $2,552.16

The gross rents on these units are great but so much of the profits get eaten away by the turnover costs it just makes less and less sense every year.  Advice appreciated.  Thanks.