Management Supervisory Fee for Renovations

Member since 2018 · 11 posts · 2 votes

Does your Property Manager charge you a Supervisory Fee for large maintenance items such as renovations and make ready work? If so, what is the supervisory fee charged?

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Nathan GesnerBusiness Member

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Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes

It is common for a PM to charge a fee. Supervising renovations and improvements to a property doesn't typically fall under the umbrella of management; it's more of a general contractor role.

As a PM, I don't force owners to use me to supervise renovations or improvements to their homes. However, if they want me to collect bids, negotiate, supervise, and handle all communications then you better believe I'm going to be paid for my time. The other option is to hire a general contractor and pay significantly more. I use trusted contractors, not unknown/unproven subs. I communicate better than most contractors. I send pictures with updates. I inspect the final product and provide pictures or video to the owner so they can see the job is complete and done satisfactorily. If not done, I fight for them.

You need to read your management agreement and see what you signed up for.

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John UnderwoodPro Member
Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
7y
I don't use PM's too many fees. They are already getting paid to look after you property then they want to charge more if they have to do something. I have found putting systems in place and having great handymen and trades contacts allow me to self manage many properties with very little of my time.
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Nathan GesnerBusiness Member
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Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
7y
It is common for a PM to charge a fee. Supervising renovations and improvements to a property doesn't typically fall under the umbrella of management; it's more of a general contractor role.
As a PM, I don't force owners to use me to supervise renovations or improvements to their homes. However, if they want me to collect bids, negotiate, supervise, and handle all communications then you better believe I'm going to be paid for my time. The other option is to hire a general contractor and pay significantly more. I use trusted contractors, not unknown/unproven subs. I communicate better than most contractors. I send pictures with updates. I inspect the final product and provide pictures or video to the owner so they can see the job is complete and done satisfactorily. If not done, I fight for them.
You need to read your management agreement and see what you signed up for.
The DIY Landlord Book4.7248 Reviews
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James Wise
Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
7y
Originally posted by @Blair Mauney:

Does your Property Manager charge you a Supervisory Fee for large maintenance items such as renovations and make ready work? If so, what is the supervisory fee charged?
Very common. Many large PM companies have in house construction services so you don't see this fee. However if the PM doesn't or if you choose to go outside of the PM's in house construction services these fees are common. I have seen them range from a flat fee to 5%-10% of the total invoice.
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