Is PM being reasonable?

Question

Hello everyone,

I would like to get a some opinions on the reasonableness of the move-in expenses given the work that is left to be done. Also, get a feel for if it is ok that they are not able to get me an itemized estimate.

Background: I have recently acquired an investment property in Dayton, OH. We got a new property manager who is helping get one of our new units ready. As an aside, this is the second person we have hired and have already spent $2K so far.

Scope & Pricing:

The new PM has proposed a total of $4,600 split between Material for $2,100 and Labor $2,500. He refuses to give us a detailed break out. I was able to get a listing of the work below.

1. Living Room

a. Hang blinds (already purchased)

2. Dining Room

a. Hang blinds  (already purchased)

3. Kitchen

a. Hang blinds

4. Bedroom 1

a. Hang blinds

b. Replace 2 broken switches

c. Trim door to close properly

d. Install shelf and closet rod in the closet

5. Bedroom 2

a. Hang blinds  (already purchased)

b. Trim door to close properly

c. Install shelf and closet rod in the closet

6. Bathroom

a. Remove tub faucet (current one is too small and the hot water handle was glued solid) and replace it with the correct faucet

b. Grout tile around tub

c. Paint ceiling

d. Floor around the shower is rotted. Disassemble shower door and remove the base. Pull up tile around the shower. May have to remove vanity and toilet-depends on how far the rot in the subfloor goes.  Repair bad subfloor.  Re-install shower. Install tile trim around the shower.

7. Basement

a. Install register cover on heat vent in the main room

b. Repair closet doors so they close properly

c. Replace the broken closet door

d. Install dryer venting to outside

e. Water heater is dated and has rusted on the bottom.  Will start to leak soon.  Remove old water and install a new 40-gallon gas water heater

Ozzy Smith · Answer

As a contractor and investor myself I don't see anything wrong with the price you were quoted.  As far as itemized pricing I won't do that as a contractor.  The prices per line item change if I get only 1 or 2 of them versus all of them.  Most of those things can be worked on simultaneously by a skilled tradesman with a helper.  The fact that you got a labor/material breakdown should be all that you are concerned with and that's more than you will get from most.  Again I don't do that as a contractor because I get way different pricing than a homeowner does and I don't let them buy my materials because they will ALWAYS buy the cheapest thing possible which makes my job harder and the quality is usually lacking not to mention they usually buy the wrong items even if they can understand what I ask for which is almost never.

As an investor you should look at the bottom line only, keeping in mind you are paying for someone to handle EVERYTHING for you.  You are going to pay a bit of a premium for that because your PM doesn't work for free either.  If you want to get it cheaper I'm sure you can but you will have to coordinate all of the work with possibly many different individuals for what you listed and then you have no one to check on the work they did.  If you hire a property manager (which you did) you need to let them do their job and I think based on what you are saying they are doing exactly that.

Jonathan R McLaughlin · Answer

yea I was thinking it might be high till I got to the shower and tile stuff. thats expensive and labor intensive. And a new water heater plus labor...lots of unknowns but I think you are getting a decent price overall.

Ozzy Smith · Answer

So without seeing your job but based on what I charge for those items I ran the numbers without looking at what your PM was charging you (Honestly I forgot what the quote was)  What I came up with as a contractor from our price sheet that we use on a daily basis came out to $4560.  I went back to the original post and you were quoted $4600!  I would say they are right on the money.  If you call a guy like me that's my price... If you can even get on my schedule in the next 30 days (We are constantly booked solid at these prices).  Basically your PM is doing all the work and scheduling for you through a trusted network for about $40 in fees.

Caroline Gerardo · Answer

Hang 5 sets of unknown type blinds 4 hours labor max cost $155

change 2 switches unknown if breaker is really the problem cost $100- $1000

shelf and rod $100

grout tiny bath $150

paint ceiling $50

shower floor/ floor pan / dry rot $800 - $3000 depends on sub floor

doors $150

water heater? vents? $800- 2200

dryer venting needs to go from where to how far to outside?

Julie Hartman · Answer

Considering you have a new water heater install in there, it's reasonable. I am sure people will disagree with this but we sometimes have property owners questioning costs for labor but never elect to do the work themselves. That is a big list you have there and it takes time plus the handyman has to make trips to the big box store to get the stuff. And if there is more than one person doing the work, that extra person has to get paid. Trades people are in short supply in some places and they can charge a premium for their services. Sometimes you get an itemized list and sometimes they lump things together and just list the time involved in doing the work. They should provide receipts for all of the items purchased at the very least.

Bill B. · Answer

I would say the price MIGHT be reasonable. BUT, not breaking it down is VERY unreasonable. Every time my PM spends more than $250 I get a detailed quote from the company/companies that will be doing the work with each job quoted separately.

Bjorn Ahlblad · Answer

@T. Smith welcome to BP! That looks like pretty long list to me. I would suggest the price is more reasonable than unreasonable. In our state the PM has to employ licensed trades. I am not a PM.

Is PM being reasonable?

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