Skip to content
Contractors

User Stats

65
Posts
42
Votes
Carlos Quiros
Pro Member
  • New to Real Estate
  • Los Angeles, Ca
42
Votes |
65
Posts

Property Management Repair Questions

Carlos Quiros
Pro Member
  • New to Real Estate
  • Los Angeles, Ca
Posted Mar 8 2024, 17:24

Hello to all-

New investor question to all that can answer. I have a new duplex, needs work. Property management contractor is about 15% higher vs a contractor I found.

How does one go about refusing to use their contractor and payment. Can I pay the contractor I found myself and just let them know the work is being done or is it best to run everything through the manager?

Thank you in advance


Carlos

User Stats

25,682
Posts
38,092
Votes
Nathan Gesner
  • Real Estate Broker
  • Cody, WY
38,092
Votes |
25,682
Posts
Nathan Gesner
  • Real Estate Broker
  • Cody, WY
ModeratorReplied Mar 9 2024, 06:19
Quote from @Carlos Quiros:

Contact your PM and let them know you prefer to use a contractor you found on your own. You'll have to coordinate with the PM so your contractor can gain access.

I hope it works out. Sometimes, cheaper isn't better. Sometimes, the contractor you found will not be as good as the contractor your PM has a long relationship with.

  • Property Manager Wyoming (#12599)

American West Realty & Management Logo

User Stats

3,389
Posts
1,780
Votes
Michael Smythe
Property Manager
#3 Managing Your Property Contributor
  • Property Manager
  • Metro Detroit
1,780
Votes |
3,389
Posts
Michael Smythe
Property Manager
#3 Managing Your Property Contributor
  • Property Manager
  • Metro Detroit
Replied Mar 9 2024, 06:37

@Carlos Quiros we run into this all the time.

You can ALWAYS find a cheaper contract! Bet you any amount of money...

The problems are:

- Do they want half down?
- Will they disappear with that money?
- Are they properly licensed and insured?
- Are they willing to add you to their insurance as "additionally insured"?
- How do you know the quality of their work will meet your expectations?
- How are you going to monitor the project remotely?
- How do you know they will complete in a reasonable amount of time?
- What are you going to do if they ask for more money because they add repairs they "missed"?
- What warranty are they offering?
-Etc.

Your profile states, "New to Real Estate" and your naivety shows.

BTW - don't trust your PMC either! They should give you a line-by-line priced bid with supporting pics/video. Depending on the scope of the project, you should request periodic pics/videos showing/confirming the quality of the work and timing is on schedule.

BiggerPockets logo
BiggerPockets
|
Sponsored
Find an investor-friendly agent in your market TODAY Get matched with our network of trusted, local, investor friendly agents in under 2 minutes

User Stats

1,179
Posts
584
Votes
Nick Giulioni
Pro Member
  • Rental Property Investor
  • Carmel, IN
584
Votes |
1,179
Posts
Nick Giulioni
Pro Member
  • Rental Property Investor
  • Carmel, IN
Replied Mar 13 2024, 17:03

Hey Carlos - it's your property... you can do what you want. With that in mind - cheaper is not always better (ask me how I know).  

By using the PMs contractor - they have given their stamp of approval on him/her. The PM will carry some of the responsibility to make sure it gets over the finish line. 

Lots of things to consider - and price is definitely an important factor. That said - don't be penny wise and pound foolish. 

User Stats

13,663
Posts
10,410
Votes
Theresa Harris
Pro Member
#2 General Landlording & Rental Properties Contributor
10,410
Votes |
13,663
Posts
Theresa Harris
Pro Member
#2 General Landlording & Rental Properties Contributor
Replied Mar 13 2024, 17:21

Echoing what Nathan said-make sure you compare the scope of work both are planning on doing and vet your person.

User Stats

3
Posts
0
Votes
Replied Mar 13 2024, 17:24

If the property management contractor's prices are sky-high compared to your own find, it's completely fair to want to use your own guy. Just shoot a quick email or give them a call, letting them know you've got someone else lined up for the repairs. As long as the job gets done right, they shouldn't mind who's doing it. Keep it chill and straightforward. Good luck with the renovations!

User Stats

65
Posts
42
Votes
Carlos Quiros
Pro Member
  • New to Real Estate
  • Los Angeles, Ca
42
Votes |
65
Posts
Carlos Quiros
Pro Member
  • New to Real Estate
  • Los Angeles, Ca
Replied Mar 18 2024, 11:02
Quote from @Michael Smythe:

@Carlos Quiros we run into this all the time.

You can ALWAYS find a cheaper contract! Bet you any amount of money...

The problems are:

- Do they want half down?
- Will they disappear with that money?
- Are they properly licensed and insured?
- Are they willing to add you to their insurance as "additionally insured"?
- How do you know the quality of their work will meet your expectations?
- How are you going to monitor the project remotely?
- How do you know they will complete in a reasonable amount of time?
- What are you going to do if they ask for more money because they add repairs they "missed"?
- What warranty are they offering?
-Etc.

Your profile states, "New to Real Estate" and your naivety shows.

BTW - don't trust your PMC either! They should give you a line-by-line priced bid with supporting pics/video. Depending on the scope of the project, you should request periodic pics/videos showing/confirming the quality of the work and timing is on schedule.

 @nick Giulioni Thank you for your sage advice. Always great to hear from experienced investors

User Stats

16
Posts
3
Votes
Dave Rodwell
Pro Member
  • Realtor
  • Los Angeles
3
Votes |
16
Posts
Dave Rodwell
Pro Member
  • Realtor
  • Los Angeles
Replied Mar 20 2024, 16:52

Hi Carlos! 

Is the property vacant or occupied? 

If it is vacant, you feel confident and comfortable with the other contractor after doing your DD AND they have a lower quote, why not give them a go? It is extremely common for PM companies to accommodate for external contractors - as mentioned above, it is your property at the end of the day. 

However, if it is already tenant occupied or you have tenants moving in on a certain date, it may be worth soaking up the additional 15% to use the PM contractors. It all depends on risk appetite. Personally, I would use the PM contractor in this scenario. Firstly, the PM trusts that contractor and has a working relationship with them. Secondly, their contractor more than likely recognizes that repairs/work on investment properties are extremely time sensitive and understands the standards expected. On top of that, is the external contractor you've chosen familiar with tenant occupied properties? Just a few things I would consider. 

Sometimes, paying a little extra is worth it to limit your risk! 

User Stats

65
Posts
42
Votes
Carlos Quiros
Pro Member
  • New to Real Estate
  • Los Angeles, Ca
42
Votes |
65
Posts
Carlos Quiros
Pro Member
  • New to Real Estate
  • Los Angeles, Ca
Replied May 8 2024, 16:54
Quote from @Dave Rodwell:

Hi Carlos! 

Is the property vacant or occupied? 

If it is vacant, you feel confident and comfortable with the other contractor after doing your DD AND they have a lower quote, why not give them a go? It is extremely common for PM companies to accommodate for external contractors - as mentioned above, it is your property at the end of the day. 

However, if it is already tenant occupied or you have tenants moving in on a certain date, it may be worth soaking up the additional 15% to use the PM contractors. It all depends on risk appetite. Personally, I would use the PM contractor in this scenario. Firstly, the PM trusts that contractor and has a working relationship with them. Secondly, their contractor more than likely recognizes that repairs/work on investment properties are extremely time sensitive and understands the standards expected. On top of that, is the external contractor you've chosen familiar with tenant occupied properties? Just a few things I would consider. 

Sometimes, paying a little extra is worth it to limit your risk! 


 Sound advice! Thank you for your feedback David. I did end up going with their contractor and it was mostly for piece of mind while I get my feet wet and learn.