Quote from maintenance company - are they trying to rip me off??

[Greg R.]

Ok, so I've been skeptical for many, many years of hiring a PM. My main concerns were that a PM wouldn't care for my properties like I would, that I would pay exorbitant amounts for any kind of maintenance, and that they wouldn't fight to get me high rents (in alignment with market comps). 

With that, my portfolio became too much for me to manage, and I've taken the plunge and hired a PM. My building just had a vacancy and the PM proceeded to get the maintenance company to quote out work needed prior to placing a tenant. 

About the unit: this particular unit is a 450 sqft studio with 1 full bath and a small kitchenette. When I got the quote I was floored, couldn't believe it. I've omitted the name of the company to maintain confidentiality. 

Parts I'm having a very hard time with... to paint the unit along with a very small wooden stairway leading to the front door, maybe 4-5 feet wide and 3 steps, they want over 2k. For unknown reasons to me they want to replace the faucet, angle stops, and supply lines. Upon inspection it seems that the only thing needed is a new faucet cap. They want $40 to plug in a C02 detector into the wall for crying out loud. For reasons unknown to me, they are wanting to apply a new "stain coat" on top of laminate. Maybe this is a thing, but I've never heard of it. Floors are generally in ok condition, some minor scratches. 

The one thing that did look ok to me was the electrical work in the bathroom. If there's something wrong there I would have no problem paying someone a couple hundred dollars to get it right. 

Are these guys trying to take me for a ride?

[Richard F.]

Aloha,

If you are used to doing this work yourself, of course it is going to seem exorbitant. A quick calc comes up with $3675 for labor, including $595 for plumbing and electrical labor. What does a properly licensed and insured plumber or electrician cost in your area? Here it is typical to see $125 - $145 per hour, plus a trip charge. Locksmith is actually about the same. Apparently there was at least some troubleshooting for the electrical switches and GFCI. Regarding the plumbing, I routinely request that "old style" stop valves (multi-turn gate type) be replaced with quarter turn ball valves that have a much longer operational life. It is good preventative maintenance to replace the flex supply lines before they burst and do real damage. Without a pic of the faucet, I have no judgment on that decision, but if showing excessive corrosion and/or age of plastic components, depending on overall condition of the unit I will likely change as well. Old, or cheap, faucets will start leaking, again potentially causing damage if stems are leaking back into the cabinet or wall. A single service call is cheaper than multiple trips for issues that could have been addressed during turnover.

What is the going labor rate for properly licensed and insured carpenters/painters in your area? Work the numbers backwards to see approximately how many hours of labor they are charging for. You stated "the PM proceeded to get the maintenance company..." That sounds like a third party, not in house maintenance staff of the PM. What does your Management Agreement state with regard to repair expenses...does PM mark up, or is it charged at cost, or?

You should have spent more time learning about the process and costs for turnover before signing a contract. All PM's are NOT created equal! When was the last time this unit had significant work, like complete paint or any updates? Maybe the PM has a higher standard of what is offered for rent than what you have in the past...we have no way of knowing. How long was the last tenant in it? Who screened and placed the tenant?