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Property Management Company charging bogus fees
Hello,
The story: my friend has a house that she wanted to rent out. She was afraid to do it by herself even though I told her I will help to manage. She hired a management company. Everything was fine for a few weeks. They charged her $600 addition to the agreed fee for removing garbage and mowing lawn. Then, next month they charged over $300 to remove some wire in a house. They never contacted her to discuss this "repairs"
She is breaking the contract with them and I already agreed to manage the house for her. My question to the experienced property owners that hire property management companies and management companies owners - how can a management company charge that much without even communicating expenses with the owner. Was this an exception or this is a rule?
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Originally posted by @Elena Koyun:
Hello,
The story: my friend has a house that she wanted to rent out. She was afraid to do it by herself even though I told her I will help to manage. She hired a management company. Everything was fine for a few weeks. They charged her $600 addition to the agreed fee for removing garbage and mowing lawn. Then, next month they charged over $300 to remove some wire in a house. They never contacted her to discuss this "repairs"
She is breaking the contract with them and I already agreed to manage the house for her. My question to the experienced property owners that hire property management companies and management companies owners - how can a management company charge that much without even communicating expenses with the owner. Was this an exception or this is a rule?
Typically Property Management contracts lay out a certain dollar amount that the Property Management company can charge without further communication from the property owner for repairs and things of that nature. In addition, they also have leeway to perform emergency repairs. Now neither of these sounds like an emergency but as I do not have the Property Management contract in front of me or the whole story as to what's going on here it's hard to give a take on your friends story.
Additionally, you say you are going to manage this property for your friend. Have you checked with your State's Division of Real Estate yet? In most states you must be licensed to do this.