PM sending repairs off to his own company for enormous markups!

[Tyler Dunlap]

Hi all, I am furious.  After some investigative work, I confirmed my suspicions.  My property manager has been severely overcharging me for repairs for months.  Like ridiculous markups.  As it turns out, this guy OWNS the company that performs the repairs.  Clear conflict of interest, obviously more interested in charging me for repairs to line his own pockets than to care for his client.  Is this illegal?  The property and company is in Illinois.  

Any advice is appreciated!!

[Scott M.]

@Tyler Dunlap Seems to be 2 issue you have.  As to him owning the maintenance company. Believe it or not it is highly common for property managers to own their own maintenance company and most don't separate them meaning they are the manager and maintenance.  Having in house maintenance staff or even a separate renovations company is not illegal.

That said, it should have been disclosed along with any markup that is going to be charged.

As for the legality of what he is charging you it would depend on what he has disclosed to you.  Meaning if they say they are marking up maintenance by 10% and that is what they are doing, nothing illegal here.  If they say they are marking things up 10% and actually doing 100% then yes, that is an issue. 

Unlike the others who have commented I would seek out the PM first and have a conversation and see what they say and get to the bottom of it.  From there, involve lawyers.  But I would start with a conversation and see where that goes.  

Also, I get your anger, but let this go a few days so you can chill out a bit before you do talk to them. You want to be calm, cool, collected and do more listening than talking.  Get all the info you can for your lawyers.