Propert management renovation fee

[Liam ONeill]

Is it industry standard for a property manager to charge 10% of renovation cost over 10,000 because typically there will be attention needed from them. I should mention the pm hired a general contractor who gave us a quote for the work and manages all of the trades and coordinates the work. Seems like I’m paying twice for the same responsibilities. Any advice or experience in this would be greatly appreciated.

[Peter Tverdov]

Originally posted by @Liam ONeill:

@Peter T. Thank you both for your Input. I believe everyone should be paid for work they do. Would you charge 10% for a big project then hire a GC who basically manages the subs and scopes of work? Just curious if that seems normal. I can see if you charged 10% then hire individual trades so you act as GC coordinating and laying out scopes.

Even if a GC is running things - who watches the GC? Who makes quick decisions on change orders that are necessary (ex renovate bathroom but once down to the studs all the wood is rotted? Who makes decisions on material? Who knows where to buy the material at a good price? Who drops off permits, shows up for inspections or any other headaches that come up? Hiring a GC doesn't make every headache go away, nor does it eliminate any time spent on that project. 

Hire a GC and learn yourself. They'll call you 5-10 times during the project and you'll likely need to show up as well, nevermind time spent picking out material and finishes. Time = money.