Our tenant has moved out and we need to flip the property to get ready for a new tenant. My PM's contractor gave us an estimate of things to be repaired and it includes things like $50 for replacing smoke detector batteries, $50 for repairing shower handle, $60 for caulking tub, $200 for changing locks. Do these seem reasonable to you?
I can only speak about the relationship between my PM and I
I look to build long term relationships with my team. My PM isn't going to slam me $50 (or anything) for smoke detector batteries, because he knows he's getting 10% every month and he wants to keep that sustainable and for the long term.
It seems your PM is trying to maximize profits against you, rather than aligning your mutual long term goals.
How long have they been a PM? this type of behavior can be common because many in that industry are in and out quick, and have no skin in the game, so they aren't looking for long term relationships. They just want to drain you of as much profit as they can until you go somewhere else, and they don't care.
I personally would love to fire this guy while handing him his last check, and remind him of all the ones he's now never going to get. But that's just me
He's ripping you off.
Thank you for your replies. I just wanted to make sure I wasn't crazy. I will be having a talk with him about this.
As @Alexander Felice mentioned, this PM is taking advantage of you without a doubt. Incentivizing PM's is the best strategy and in the end will maximize your profits by reducing vacancy and maintenance charges.
@Shay Lee As a PM in San Jose those sound a bit high especially if they are all being done at the same time. They should be grouped together to minimize costs anyways.
I personally installed a new CO detector for a client at no charge because I was already at their property for another reason. I see not benefit to the clients nor myself nickle / diming every little thing.
Lol @ the prices. Why don't you do it yourself or hire a handy man to do it for you? Do you need a contractor to change a battery for you?
batteries is often 9 volt-$4.50, shower handle can vary, caulking can take anywhere from 10 min to remove all existing caulk to reseal, 1 hour max. Locks is $38 per lock...
A reliable handyman charges $45-50/hr. Can walk out in 3 hours. $150+ parts.
Realty One Group
If it was me, I would want receipts and documentation of their time. I'm not a professional contractor, but all of that work would take me an hour, 2 at the most. I would expect a contractor to take maybe 30 minutes.
My biggest concern would be what else are they being unethical about. When I first bought my 4-plex I found out that the current property manager also owned a plumbing business. The previous owners were hundreds of miles away, and had several repairs done by that plumbing business. Unfortunately the repairs were shoddy at best and I had to hire a different plumber to go in and fix the damage.
Unless those batteries were made by Tesla and the shower handle/caulk were solid gold, consider a new PM.
Sorry my post doubled. I don't know how to delete this one.
These prices would be fine if they were just doing the one thing since you are also paying them for taking the time to get over there, but if they are all being done at the same time, I would expect the charges to be lower.