Property Manager Upcharging Invoices

[Matthew Orr]

I just learned that the property management company I am using is charging me a higher price for work invoices than they are being charged.  This "upcharge" is mentioned in the contract, it was never disclosed, and it wasn't until I asked for a copy of a specific invoice that I discovered that it was happening.  I was told "we have negotiated rates with several vendors in the area that reduce costs in order for us to incorporate roughly 20% project management fees."  I thought that the property management fee was designed to cover the cost of them calling out a plumber if it is needed.  Is this common?

[Drew Sygit]

A bit confused by your posting, "This "upcharge" is mentioned in the contract, it was never disclosed"

This appears to be a contradition.

As everyone above has pointed out, a PMC's time is worth money. 

Owners expect a monthly fee to cover EVERYTHING! Well, there's no way for a PMC to do that and stay in business.

FYI - be VERY WARY of PMC's that claim they don't charge for maintenance. They are doing one of the following:

1) Hiding their charge somewhere

2) Charging by the hour, but then you don't know what they are paying their maintenance people (so, cost is again hidden)

3) Will only handle small maintenance issues and wither tell you to handle the larger ones or they will get bids and build in a markup

4) They'll provide poor service because they are not adequately staffed to deliver on all their promises.