Is it normal that PM gets 13% of all repairs and rehab?

[Ariel Tobi]

It sounds weird that the PM's business is against the landlord's interest. They need you to spend money and you try to save... It's sleeping with the enemy part 2. Is this rights?

[Roel Van de Ven]

Hi Ariel, 

These type of markups and hidden fees are one of the reasons I got into property management. 

We keep it simple and transparent, 8% of month rent, $250 renewal fee when we renew the Lease for another year, and if we need to place a tenant we have 1 month leasing fee. 

Let me know if your interested in setting up a call

[Bob Stevens]

Quote from @Ariel Tobi:

It sounds weird that the PM's business is against the landlord's interest. They need you to spend money and you try to save... It's sleeping with the enemy part 2. Is this rights?

 How about this, YOU go deal with the tenants, In Liberty City. YOU deal contractors and inspectors; YOU get the calls 24 hours a day. SO, if a job is 5500 VS 5K, So what, 100% irrelevant. Also, you will end up paying more anyway as you're a one a done client to the GC. Whereas the PM gives them 50 jobs a month .So many count pennies when there are dollars to be and will be lost if you go it on your own. 

All the best 

[Bob Stevens]

Quote from @Roel Van de Ven:

Hi Ariel, 

These type of markups and hidden fees are one of the reasons I got into property management. 

We keep it simple and transparent, 8% of month rent, $250 renewal fee when we renew the Lease for another year, and if we need to place a tenant we have 1 month leasing fee. 

Let me know if your interested in setting up a call

 This is ALL the norm, hes asking about mark up on repairs, 

[Tim Baldwin]

It is becoming more common in Florida. Property management companies work on a small margin, and the amount of time and overhead it takes to deal with maintenance pushes them to require a percentage of the maintenance. 

Having helped property management companies for nearly 20 years, I am seeing more of them require this fee for maintenance. Of course, the nicer the property, the less maintenance problems there are, but the where the home has a lot of maintenance problems, it will cost the landlord more to have the PM deal with those issues. 

If the company is professional, responsive, and competent, you may consider it worth the expense, especially if the home, in fact, has a lot of maintenance problems, as those types of rental properties are riskier to manage and own.

[Drew Sygit]

@Roel Van de Ven since you're bragging about how "simple & transparent" (i.e. low) your charges are, curious as to:

1) What maintenance, repairs and renovations you fees actually cover

2) How you bill to owners?