The Money Mustache Community

Learning, Sharing, and Teaching => Real Estate and Landlording => Topic started by: kenmoremmm on August 13, 2018, 01:37:29 AM

Title: Using PM - Maintenance Costs
Post by: kenmoremmm on August 13, 2018, 01:37:29 AM

I'm looking to use a PM for some future out-of-state properties. I see they list a 15% markup for maintenance calls - presumably to coordinate things. This is in addition to their normal operating expenses (general PM, placing tenants, etc).

Is this normal?

Title: Re: Using PM - Maintenance Costs
Post by: tralfamadorian on August 13, 2018, 05:53:17 AM

It’s not unusual but also not universal. I personally do not use management whose fees reward outcomes that are in opposition to my own goals. For example, a markup on vendors rewards the management for hiring more expensive vendors. The same for vacancy fees. It’s difficult to find- I’ve had to negotiate the terms- but I also prefer to pay a higher renewal fee than a new lease fee.