Property Management - what value are they adding

[Satya Surendra]

I’d like to get feedback from other investors on property management value and what are my better options to manage it remotely as properties are in different states.

My current PMs never visits the property and simply dispatches contractors for repairs. Anything under $500 is approved automatically, and for items above $500, they don’t seek a second quote. They also charge separately for evictions.

In two cases (both AC repairs), I found licensed and bonded contractors offering much better pricing than what my PM arranged.

Given this, I’m wondering — what’s the real value-add if the management company simply outsources everything at potentially noncompetitive rates?

[Nadeem Alamgir]

@Satya Surendra

Most property managers don’t do the repairs themselves. They just coordinate and hire out (some have in house contractors or handymen). What you’re really paying for is saving time, tenant communication, and rent collection, not necessarily the cheapest repair quotes.

If you already have a decent contractors or systems in place, there’s nothing wrong with using them. Many investors I know let the PM handle the day to day but still source their own contractors for larger repairs or rehab work to keep costs under control.