Kansas City - PM Labor Rates and Supplies Mark-ups

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Kansas City - PM Labor Rates and Supplies Mark-ups

George White
Investor · Kansas City, MO · Member since 2014 · 17 posts · 12 votes

 Hey BP - I am vetting a few PM companies and one company sent me their schedule for maintenance which is on top of the 10%/month management fee. The rates are pasted below. Is $40/hr for unskilled light labor reasonable?? That seems a bit overpriced in my opinion. $50/hr in general labor?? Again I think it seems a bit high. Also, the supplies mark-up below. Is this reasonable? This would be my first time hiring a property manager so I am trying to get a better feel for expectations. One reason I like this PM is because their office is less than 5 minutes from my building. Any thoughts are welcome!

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Sal Souza
Atwater, CA · Member since 2017 · 18 posts · 10 votes
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Just wanted to give a shout out for @Robin Hunter in Kansas City/Independence MO.  She has been my property manager for about a year now.  Good rates for management, honest, fair, reasonable prices for repairs, excellent communication.  Highly recommend.

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  • Michael Choy
    Rental Property Investor · Newark, CA · Member since 2021 · 10 posts · 9 votes
    5y

    @George White - I've been in the process of vetting PMs in Kansas City too. The rates I've been getting are $50-55/hr for handymen that take care maintenance that don't require specialists. And then if a specialist is needed (e.g. plumber, electrician, HVAC) the PM would charge a 10% markup, and the markup would usually be on labor only. Materials are at cost. 

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  • Robin HunterPro Member
    Real Estate Agent · Raymore, MO · Member since 2015 · 72 posts · 22 votes
    5y

    Hi @George White, I run a property management company and I only use independent contractors so I don't have to carry insurance to cover them. I do not have any maintenance people on my payroll. But the guy I use for general maintenance charges $50 for the first hour and then $20-30 per hour after that. Outside of that, my specialized contractors run $65/hr and up. But I do not mark up repairs. 

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  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
    5y

    Have you ever run a business and had to pay worker payroll taxes, workman's comp, liability insurance, etc?

    Owners always think they can get everything done real cheap by hiring hacks off Craigslist, but then want to throw the PMC under the bus when work is subpar or there's a lawsuit caused by poor work quality.

    Why don't you call a legitimate handyman service and a few licensed contractors and ask them what their hourly rates are? You'll probably find what you've been quoted is pretty fair.

    In our opinion, this PMC has gone way past normal with their Maintenance breakdown - in the positive direction.

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  • Mike D'ArrigoPro Member
    Turn key provider · San Jose, CA · Member since 2010 · 4k+ posts · 3k+ votes
    5y

    @George White The PM's office being less that 5 minutes away wouldn't be a criteria for me. Any communication you have with your PM can be done by phone. 

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  • Sal Souza
    Atwater, CA · Member since 2017 · 18 posts · 10 votes
    5y

    Just wanted to give a shout out for @Robin Hunter in Kansas City/Independence MO.  She has been my property manager for about a year now.  Good rates for management, honest, fair, reasonable prices for repairs, excellent communication.  Highly recommend.

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  • Matthew Irish-JonesBusiness Member
    Real Estate Agent · Buffalo, NY · Member since 2017 · 2k+ posts · 2k+ votes
    5y

    @George White every market is different but that is not really that high.  Labor costs are sky rocketing everywhere.  PM's need to be fully staffed so they can handle all turn over and all maintenance issues in a timely fashion.  If you call uncle Bill who has no overhead and pays his guys off the books you can get a great deal.  You will pay for labor with a PM company due to insurance, pay roll taxes, vans, shops, warehouse, etc... but, if you get a good one they should manage your unit well, do great work, and get you your time back. 

    I find that local investors can save about 10-15% on operating costs to self manage.  That is usually a great option for anyone managing 2-4 units.  Once you get past that you are talking about leasing, screening, taking tenant calls, managing vendors, compliance, fair housing, showing units, and dealing with maintenance.  Once most investors get to that point they are happy to pay for services to get their time back. 

    Unless you are going to build an internal PM company or manage your assets full time you are eventually going to need a property manager.  

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