Property Management Company charging too much
Hello - I hired a property management company in Dayton, Ohio area for my quadplex. They seem to be spending like crazy without my approval. For example: 375 dollars for fixing a door knob, 180 dollars for changing a lightbulb, $400 for faucet replacement. How do people find the right property managers for their area? I am an out of state investor.
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There should be a maximum spend limit listed in your contract that states any repairs over "X" need to be approved by you. Typically this is around $300 or so. Take a look at your contract and verify the PM company is abiding.
A couple of options to locate reputable PM companies.
1. Get in local real estate investor groups on Facebook and ask who other investors are using. Ask who NOT to use. You will get plenty of good advice.
2. NARPM. National Association of Residential Property Managers. Under NARPM's website you can search local property managers to Dayton and see who has taken the time to become associated with NARPM. Often times, PM companies who take the time to get certified and complete training under NARPM are more reputable.
3. Google reviews can be helpful, but can also feature a bunch of nonsense.
4. Call around to different companies. Draft a list of questions to ask them. See if they are knowledgeable and experienced in the area. Ask them how they deal with maintenance issues. Do they have on-board maintenance staff? Or do they call a third party contractor for simple stuff (i.e. door knob replacement, light bulb replacement).
If a PM company charged $180 to change a lightbulb, I would fire them yesterday. Good luck on your search!