Concerns with Property Management in Chicago Area

[Hares Najand]

Hi BP community,

We currently own several Section 8 rental homes in Chicago, Markham, and Country Club Hills, IL, all managed by the same property management company. While they are good communicators, experienced with Section 8, and their software for rent collection is solid, we're increasingly concerned about a few key issues and would appreciate input from anyone with similar experiences:

Turnover Fees Transparency:

The turnover fees seem high, and despite our requests for itemized breakdowns and man-hours to justify these costs, we feel they may be taking advantage of our out-of-state position. All turnovers are handled "in-house," with no outside bids or quotes to ensure market rate repairs. Is this common, or are we overpaying due to lack of competition?

Move-In Fees vs. Security Deposits:

The property management charges tenants a "move-in" fee rather than a security deposit. We feel this doesn’t protect us from tenant damage (e.g., stolen smoke detectors, fire extinguishers) or cover costs for anything beyond normal wear and tear. Their rationale is based on Illinois law, where security deposits must be held in a separate account and accrue interest if held over 6 months. They also claim move-in fees avoid court disputes. We’re willing to manage a separate account and deal with potential disputes if it means better protection. How do others handle this situation?

Delayed Advertising for Vacancies:

They don’t list properties for rent until the tenant vacates, which prolongs our vacancy periods. Has anyone dealt with this issue, and how did you push for earlier advertising?

Overall, we’re not ready to move to a new property management company without hearing from others. Have any of you had experience with similar property management challenges in the Chicago area? Looking forward to hearing your thoughts!

Thanks in advance for any advice!