Author Topic: Using PM - Maintenance Costs  (Read 292 times)

kenmoremmm

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Using PM - Maintenance Costs
« 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?

tralfamadorian

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Re: Using PM - Maintenance Costs
« Reply #1 on: August 13, 2018, 05:53:17 AM »
Itís 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. Itís difficult to find- Iíve had to negotiate the terms- but I also prefer to pay a higher renewal fee than a new lease fee.