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Updated almost 8 years ago, 01/14/2017
Extra Manager's fee / Legit ???
I have a 20 and a 19 unit property that is professionally managed off-site. I pay 7% of collected income and my manager also charges leasing fees, trip fees, and recently another fee that really bothers me. The new fee is the difference between a wholesale fee, or discounted fee, a vendor charges them for a repair, because of their relationship, and a "market rate" for that same repair from a vendor who doesn't give them a "relationship discount. Basically, they expense to me a manager's fee for the difference between a wholesale repair cost and a retail repair cost. This is hard to measure and I just don't like it. My manager says this has become common in the market. Any ideas on 1) Is this a legit fee and? 2) What better compensation system can I do to better align their interests with mine? Thanks.