paying 10% of repair cost to management company

[Peter Sik]

Want to know is this usual for paying 10% of repair cost to management company for their supervision.

"A charge for supervision of repairs for a remodel, reconstruct or rebuild will be ten percent (10%) of the total cost of the repairs. This charge will be billed to the Owner/Lessor and is due upon receipt."

Do you think this is acceptable?

[Mike Dymski]

Hey @Peter Sik I did not pay a markup with two prior management companies but am paying 10% now. My current PM is a GC, has in-house maintenance expertise, and specializes in my property type/class; so, I do not mind paying the markup. They charge 7% management fee and no placement fees; so, as others have mentioned, check out the holistic cost structure. I just started with them; so, we will see how it works out.

In the end, how well they manage vacancy and the underlying maintenance cost with vendors/contractors will be the true cost of 3rd party management and not their fees. Good luck with your search...vetting managers for SFR and small multis can be challenging in many markets.