Management Supervisory Fee for Renovations

[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?

[Nathan Gesner]

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.