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?

[Jay Hinrichs]

Quote from @Bill B.:

Has to be market dependent. In MN and NV I pay less than market with my PM. They give me a quote from a retail vendor that shows a discount for how much business the PM does with them. They ha no problem with me arranging someone else to do the repair.  When I’ve called around the “un-discounted price” has been within 5% of market. The discounted price is usually about 5-10% under market prices. Plus it’s fixed same day. 

If you don’t love your Pm call a couple other local pms or talk to local investors about who they use. Tell the people you interview the address or just the area and the property details (so they don't look up current rental info.) Ask them how much rent they would charge and all charges you would face. 

I pay $300 for a new tenant, $150 for a renewal and 8% of rent collected. Period, end of story. Oh, and they keep 1/2 of late fees. End of story. :-). 

Ps. Does their contract require you use their vendors? Do they add on the charge if you call in your own repair guy? (If so, I’d bail.)

PM fee's are heavily dependent on the class of property..