Property Management fees

[Pablo Pozo]

Hello BiggerPockets Real Estates investors,

My property manager charges a125 dollar non refundable pet fee to the tenants and they keep that fee. I asked them why do they keep that fee when I when I am the one taking all the risk (damages, injury, etc). They said that they use that fee to buy “insurance” in case of damages. Their insurance will cover a maximum of 750 dollars. After giving it some thought, I said to my self that I should be buying a policy with that money since I am taking all the risk and the additional wear and tear on the property. As an owner I don’t get to see none of that 125 dollar fees. Property management just pockets that fees for no reason without taking any risk. Most of the time there no major damage from pets but there always additional wear and tear. I want to get everyone’s input on this and see how they handle this with their property managers.

Thanks,

Pablo

[Nathan Gesner]

@Pablo Pozo

I know property managers that keep all the pet fees but they personally cover pet damage up to $3,000 or more. $750 is not enough to cover what an animal can do.

You should read your PM Agreement. All the fees and responsibilities should be clearly spelled out in advance. If not, you need a new PM.