I am reading this thread and I am pretty shocked by what people are saying they are charged by their PM companies. The company that manages our properties (granted the company is owned by the same dingo that owns the turnkey company I work for) only charges for items when they are relevant (IE they don't mow grass in the winter, although they do shovel snow if the property is vacant)
@Sriv Nava If a toilet flapper malfunctions within the first year of ownership, my investors wouldn't even see a charge from the PM company, let alone one that is $45/Hr for labor. We also have a minimum trip charge, so that flapper would have cost approximately $20 total to replace. Also, I suggest if you are getting frequent charges, to enquire whether or not the tenant is being charged for things that are broken due to their negligence. (IE if a tenant breaks a door, the tenant needs to pay for the door)I know that we personally (I own a renovation company as well) will go back free of charge if there is something that was missed during rehab. Its just the right thing to do. If a water line gets clogged 3 months after a tenant move in because we didn't replace a piece of galvanized pipe, we simply do it.
I will go back to what I say all the time in all of my posts, It doesn't matter what numbers you are provided on paper, what matters is the trust you have in your team. I can give you a pro forma that shows a 15% cap rate but if my PM company adds charges every month for things that never happened or your being overcharged, then the Cap rate I provided is illegitimate. On the flip side, If I give you a pro forma with a cap rate that says 11%, but then PM gets the property tenanted for $100 more per month, covers maintenance for the first year, comes out of pocket for life if the mistake was theirs and not something that could have been prevented, doesn't charge 45/hr etc, then your property is much more sustainable. You absolutely have to find feet on the ground that you trust, It should be a marriage and not a one night stand.
