Like and/or dislikes about your Property Management Company?

Question

I have been a property manager for over five years. I am currently starting my own property management and real estate brokerage. My question is for those who currently or have in the past used a property management company. Can you please share with me you likes and dislikes? My current company marks up vendor invoices sometimes up to 20% and charges different fees to the tenants. I would also like to know your opinions on those types of charges. I feel strongly against both charges but would love the perceptive of others.

Scott M. · Answer

@Marietta Miller assuming this is your real name and your last place of employment is somewhat findable (I am not looking, just guessing) you may want to be careful what you are posting to a public forum and would want to be sure you are not breaking any non disclosures you have with them.

Marietta Miller · Answer

@Andrew Pearson Late fees and posting fees such as 3-days I totally agree with and are completely necessary.

The previous company I worked at charged a Month to Month fee that stayed with the company not the property owner and a mandatory fee of $37 for every household that is supposed to give them online aces to pay rent, make work order requests, renters insurance underwritten by an insurance company and other things outlined in the lease and marketing disclosures.

Dan Powers · Answer

@Mike Adams If your looking for a good one in the Philadelphia area I would recommend @Sean Watson Rentwell. I've had multiple investors use them for management with no negative reviews, their approach is a little different as they only charge a flat monthly fee, as opposed being based off rent. They also have recommended contractors to use on cosmetic work needed for the property and will handle evictions.

Davartay Miller · Answer

@Marietta Miller That is very interesting! It makes you think that everything will be closer to 20% and never 0%. However, this comes down to integrity. Signing up for property management definitely boils down to T R U S T. If the trust factor is not there – let it gooooooooo! It's not going to work if you feel you will need to go behind them on everything.

OAN: Congratulations on starting your brokerage up. I wish you nothing but the best as you get started.

Best of Luck,

Mike Adams · Answer

They tell you one thing, do the other. They take on more clients then they can handle. Lack of communication and when turd hits the fan, they twiddle their thumbs.  I've found really one one I can recommend (outside of our own) in Connecticut and Massachusetts.  Have yet to find a decent one in New York, New Jersey or greater Philadelphia; aside from our own.  One thing I can say, communication and automation is key.

Andrew Pearson · Answer

Could you elaborate as to what extra fees are being charged to the tenants? Some fees are necessary such as late fees, utilities, etc. There are some others where I tend to agree with you.

For instance, a company I worked for charged a $6.75 monthly "service fee" for RealPage to divvy up the utility usage send them a bill every month. That one made me feel a little "icky", but there obviously wasn't anything I could do about it.

I'm not opposed to charging tenants fees, but I do believe such fees should be reflective of what the owner or management company actually has to pay for these services (no mark-up). There should also be an understanding from a management company's perspective that some costs are just operating costs and shouldn't necessarily be passed onto the owner and tenant. All fees should be clearly and conspicuously stated in the lease.

Marietta Miller · Answer

@Davartay Miller

It was outlined in their management agreement. I think it said something like: The range of profit can be from 0% to 20% of the cost of labor and materials.

I should also clarify I no longer work for this company. I am working as a commercial property manager as I get my own brokerage up an running!

Marietta Miller · Answer

@Scott M. Such a great idea! Thank you :)

Davartay Miller · Answer

@Marietta Miller When you say they are marking invoices up to 20% what does that mean? The phrase 'up to' indicates that you never know what you are going to get. Why are there inconsistencies? What does the property management agreement state? Curious to know that.

Is it not unheard of for property managers to have markup repair cost. But typically there is a set cost. It's in their contract. It should be no secret! The mission is to never nickel and dime an owner; I find that to be very unethical. Our team marks up repairs but there is never 15% today, 20% tomorrow, and 18% the following day. That's ridiculous.

Respectfully,