As a PM company ( 2 years working now) we use vendors who keep owners from getting sued if something happens at your property. It's assurance that you are paying for when the PM uses a company that is licensed, insured, and has workers compensation (which will cost more money). Most vendors who give cheap prices do not have workers compensation. They won't even mention it because most people don't even know about the legalities involved when bringing someone else onto their property.
Some owners ask me for 3 bids before getting any work done. If I have to schedule 3 bids with 3 different vendors that is 3-6 hours of my day for one property as you can't talk and negotiate with 3 different vendors at once. Not to mention having to schedule it with the tenant who may or may not have any time for me other than after 7 or 8 when they get off work.
Though I do have some owners who don't care if we hire criminals to do their work because they themselves are slumlords hiding behind property managers. I've had handymen steal packages from my tenants doorstep and then try to deny it, even though he got caught later at the post office, on camera, trying to send the package back to the tenant.
I'll give you an example.
I have a plumbing clog at unit #1
I call vendor #1 who I use regularly and they charge me $288 to clear the main line and the problem gets solved. They are licensed, insured, and have a call center where I know the secretary who is very nice and they have workers compensation. It is honestly a pleasant experience dealing with this company.
I have another vendor #2 whom I can call that charges me $275 to do the same work and they are licensed and insured and have workers comp. The owner answers the phone for me and he's very friendly. Their prices are usually cheaper than vendor #1
I have another vendor #3 who is the one that stole the package from my tenants door step. He charges $75 to do the repair and even fixes the shelf in the next room.
I have another vendor #4 who doesn't have a snake to do this kind of job, but he's usually around and can diagnose the problem and let me know what's really going on with it, as I am rather busy and often have to take the word of the tenant and photos etc to find out what is wrong. He is a good friend and I trust his opinion on what it might cost to fix or repair and how to get the job done.
As an owner Which vendor would you want me to use?
You see, People hire management companies for the same reason that they order a #4 at chick fila or mcdonalds. They are too busy! They don't have the energy to decide this stuff or time to sort through all the madness.
If however you have the time, then by all means, do the damn thing yourself. If not, you can always hire a property manager. Our job is to make your life less stressful, but when we take that responsibility on, you have to understand that you will be taking on a financial stress to pay for the decision making stress that comes with owning rental properties.
