Set Me Straight with Property Management Service & Fees

[Darryl Booker]

Dear BP Community,

I have several questions that I need your help on. I will try not to get into complaining about a certain company because I know this not the proper forum for that; be that as it may, here goes:

1. Should I as a real estate investor (REI), with properties managed under a certain property management company (PMC), receive monthly statements of revenues and expenses per property?
   1. E.g., I have five (5) properties under management: Should I get statements saying property X Income/Expense, property Y Income/Expense, etc.

1. Should I as a REI, also receive payment of revenues from said PMC and subsequently pay for all expenses via a separate method/account?
   1. E.g., I have a property that collects $750 in rent, and I have a property that has a $900 worth of expenses (rehab work) – should the PMC send me the $750 in rent, and I then send them the $900 in expenses via separate method, or should the PMC take the $750 in rental income, and bill me the $150 as the difference?

1. Should a PMC charge a service fee to visit a property [already under management], on top of the management fee?
   1. E.g., A tenant called to make a request for maintenance – the PMC goes out to the property to inspect, repair, etc. (whatever). The PMC charges me (the owner) for a service/trip fee of $40, in addition to the regular monthly management fee of 10%
2. In one particular incidence, the tenant requested a maintenance call, the PMC went to the property, the tenant refused to let them in, and they still charged me with the fee. When I inquired about this, the only response I got was “it is in the management contract that you signed.”
3. When I asked why wasn’t I informed of this charge, the response I got was “Because your authorization threshold is $200 per property, we didn’t need your approval.”

BP community, help me out…set me straight.