Property management quote for roofing seems very high

General Landlording & Rental Properties
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Property management quote for roofing seems very high

Robyn R.
Rehabber · Austin, TX · Member since 2013 · 41 posts · 4 votes

Hi there,
I got as call yesterday from the property manager on a roof leak in one our SF properties. We've had two very strong rain storms over the past thee months and both have caused the roof to leak in one area. I'm not sure why the prop manager didn't get a quote to me the first time around, but apparently the tenant is very unhappy and wants it fixed asap. Hence, I had the prop manager calling me yesterday afternoon at 5 with a quote for repair which seems really, really high for the work involved. I told him I would like to get another quote and he came off as very pushy and defensive about his contractor and the need to get this done as quickly as possible. So three questions for you guys.

1. Is it not the norm to ask for another quote or two from someone else? Are you supposed to just blindly go with whoever the prop manager has contracted?

2. Do prop managers get percentage on contracted work?

3. Am I imagining it or is $1150 a high cost for the following:
-pulling up shingles around chimney
-redoing flashing
-installing a water/ice barrier
Seems outrageously high for the amount of work involved! I would have estimated it be around 3-500 tops.

Any input is appreciated even if it's just to tell me I'm being a pain in the butt and that the quote is reasonable.:-)
Robyn

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Pat L.
Rental Property Investor · Upstate, NY · Member since 2012 · 3k+ posts · 3k+ votes
13y

thanks
J Bear was a resident of a farm we stayed at in my home town.

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  • Ryan R.
    Real Estate Investor · Central, TX · Member since 2012 · 479 posts · 165 votes
    13y

    Got a quote yesterday to have chimney re-flashed and its a large chimney. $600. If flashed properly, I don't think we would need water/ice barrier down here. This quote was for grinding into the mortar joint and setting the flashing deep into the bricks.

    0Reply
  • Dion DePaoliPro Member
    Real Estate Broker · Northwest Indiana, IN · Member since 2011 · 2k+ posts · 2k+ votes
    13y

    I think the quote is high.

    Unfortunately, some property managers and real estate agents have "teamed up" with contractors creating another source of revenue for themselves. In the REO I have owned, I have seen much of this. The same thing usually happens, agent get's pushy because they want to make a couple extra dollars on the deal. The contractor doesn't really care in many cases if the job sells to the owner, it sells.

    IMO, you should always get 3 quotes. A function of making sure the price is in line but also making sure the scope of work is in line as well.

    0Reply
  • Kyle J.
    Rental Property Investor · Northern, CA · Member since 2012 · 5k+ posts · 5k+ votes
    13y

    Sounds high to me too. I recently did almost the same repair on one of my rentals, and it's not that hard or time consuming. I bet if you get your own quotes they'll come in less.

    0Reply
  • Mark Ferguson
    Flipper/Rehabber · Greeley, CO · Member since 2013 · 2k+ posts · 1k+ votes
    13y

    That does seem high. But I don't know prices in San Fran either. In Colorado the property manager has to disclose any arrangement they have with a contractor and if they do not they can lose their license and pay huge fines. Last case was $40,000 fine for a property manager only using their contractor and marking up bids 20% and not disclosing this to owner.

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  • Robyn R.
    OP
    Rehabber · Austin, TX · Member since 2013 · 41 posts · 4 votes
    13y

    Thanks Mark Ferguson, Ryan Richard and Dion DePaoli .
    I'm glad I'm not going crazy, I knew that was high.
    I am also a proponent of getting three bids on everything, I am new to having the property managed (used to do it myself) and was thrown off guard by the prop manager's defensiveness on me wanting to get other quotes so I wanted to make sure I wasn't being unreasonable!
    Makes sense that it's a revenue stream for them and I'm fine with people making money where they can, but only when there's transparency about it and not just someone trying to pull the wool over my eyes. I am curious if they will disclose to me if I ask directly about their relationship with the roofing contractor. Glad to know that this is not kosher (atleast in CO).

    0Reply
  • Robyn R.
    OP
    Rehabber · Austin, TX · Member since 2013 · 41 posts · 4 votes
    13y

    Thanks Kyle J., that's what I'm hoping! Im not really keen on paying someone $1150 for what should be tops a 2-3 hour job.

    0Reply
  • Pat L.
    Rental Property Investor · Upstate, NY · Member since 2012 · 3k+ posts · 3k+ votes
    13y

    way high !!!

    I am doing the roof of a home built in 1830.
    18 sq, tearing off 2 layers of cedar, 2 layers of roof tile, new sheeting for the entire roof, including soffit/gutters for $4900.
    The 3 other quotes were north of $6500.
    A PM we have used wanted $9000 as he thought it should be an ins job!

    0Reply
  • Robyn R.
    OP
    Rehabber · Austin, TX · Member since 2013 · 41 posts · 4 votes
    13y

    Thanks Pat L., I have to learn to trust my instincts more. Love your little koala friend!

    0Reply
  • Pat L.
    Rental Property Investor · Upstate, NY · Member since 2012 · 3k+ posts · 3k+ votes
    13y

    thanks
    J Bear was a resident of a farm we stayed at in my home town.

    2Reply
  • Arjun K.
    Real Estate Investor · New York, NY · Member since 2012 · 210 posts · 15 votes
    13y

    You can get a quote same-day from a lot of folks (especially if you call around). I've recently obtained quotes from a few folks for some jobs. I am not a sophisticated owner, and get quotes to keep folks honest. I generally find quotes to be accurate, although in one situation 1 firm advocated roof replacement, and 3 others did not.

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    0Reply
  • Robyn R.
    OP
    Rehabber · Austin, TX · Member since 2013 · 41 posts · 4 votes
    13y

    Thanks for the referrals Arjun:-)

    0Reply
  • Mike Franco
    Los Angeles, CA · Member since 2013 · 555 posts · 261 votes
    13y

    property management doesn't care because you're the one paying.

    They suck.

    0Reply
  • Robyn R.
    OP
    Rehabber · Austin, TX · Member since 2013 · 41 posts · 4 votes
    13y

    Thanks Mike, I'm figuring that out the hard way! I specifically put property management on one of our properties because of a difficult tenant. Its nice to have them be the buffer so I don't have to deal with the tenant, however, I am learning that they aren't going to watch the bottom line like I will. Double edged sword I guess.

    0Reply
  • Martha Chavarria
    Investor · New York City Metro area, NY · Member since 2013 · 39 posts · 12 votes
    13y

    Robyn Roberts Hi Robin, I'm a contractor in NYC...a bit different in cost estimates. I must say that in NYC, we have to have licences for home improvement. Since most of the properties in this area are handled by either a property manager, or a property management company, it can be difficult to the owner to be part of every detail of their property and their tenants.

    Sad to say, that it is true (though illegal) property managers do get a commission at the coat of the owner.

    Since I don't support or encourage those practices as a contractor, I find that I sometimes, get the short end of the stick in NOT being awarded some home improvement jobs. The owners in this town are so busy, when they hear from me about the situation, they think I'm soliciting, when in fact, I'm trying to save them from overpaying unnecessary home improvement costs.

    The only legal way that property owners bid on a job, if it exceeds $20k, and the owner has to approve it. I know I'm getting off course with the actual forum per se, but sometimes, it needs to be known, that some contractors (the honest ones like me) can also be a victim to property managers.

    Whew...said a lot. Anyway, I encourage you to meet and talk directly with roof contractors...ask them questions, really get to know them and their expertise. They will see how interested you are in their work...and I would also tell them the projects you will be working on in the future (that is if you are purchasing property) that may require their services. Perhaps, they might even work with you on a good price.

    Good luck. :-)

    0Reply
  • Joel OwensBusiness Member
    Moderator
    Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
    13y

    Robyn is your property manager a full time manager or just someone doing it on the side as an agent in between closings??

    A bunch of public perception is property managers do not do anything and just collect a check. It always seems easier when you are paying someone else to do what you do not want to do or have the time to do.

    PM is one of the most thankless and low pay jobs out there in my opinion.

    I am an investor myself and commercial broker on larger deals and I would never ever do PM work. Low pay and a big headache. I fault PM's when they take a job and overpromise to an owner. Many times the broker/agent doesn't want the job but does it out of necessity to make coin to scrape by. You do not want a PM that answers when you ask if they like PM work and they say they are just doing it for a job.

    You want one that has that A type personality and is anal retentive on trying to save costs and constantly improve their processes to deliver a better bottom line to their owners. PM's that work with investors and manage their properties should already know who the other owners use in the area. These contractors no matter the field understand investor pricing and what is expected. Retail contractors do not discount usually and use investor jobs as fillers only.

    The key with repairs is to plan them out as well as replacements. Occasionally you can find items on sale but the big bulk of your cost is in the quality of job and the labor costs. For that for each profession for that area ask questions.

    I used to ask the plumbers when they came out to my apartment buildings. (How is business??), (Is this your busiest time of the year) etc.??

    With this info even for investor contractors when you give work to them off peak season for their trade you land the best labor rate plus parts might be on sale as demand is down. So this is why frequent inspections on your property are key. You spot any water leaks or other issues and then you plan accordingly as to when you want to fix something and also for tax planning.

    I learned a ton when I had my 20 units from the school of hard knocks. Hope it helps.

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    1Reply
  • Ryan M.
    West, MI · Member since 2012 · 674 posts · 182 votes
    13y

    They will get as many quotes as you like, while billing by the hour for their time.

    0Reply
  • Robyn R.
    OP
    Rehabber · Austin, TX · Member since 2013 · 41 posts · 4 votes
    13y

    Thanks Ryan M. Joel Owens Martha Chavarria.

    0Reply
  • Rob K.
    Investor · Southeast, MI · Member since 2012 · 2k+ posts · 1k+ votes
    13y

    I recently had a chimney leak that needed to be flashed. I called my usual roofer and he said $300. I thought this was high. I called a handyman I deal with from time to time. He quoted $125 over the phone. A few days later, he did the work. So far so good. We've had some rain and no leaks.

    I would shop around.

    1Reply
  • Ryan R.
    Real Estate Investor · Central, TX · Member since 2012 · 479 posts · 165 votes
    13y

    Robyn Roberts, did he give you any details about "redoing flashing"?

    There are a lot of ways this could be done; especially depending on the chimney material. Is it a brick chimney? Hardi sided chimney?

    The price I quoted earlier was for a sheet metal fabricator to come out and make a custom flashing surround for a large brick chimney.

    If this quote is for a roof laborer to buy some in-stock flashing at home depot, then it's probably about 3X's too much.

    As others mentioned, get more quotes. And have them itemize each item and question anything that doesn't make sense.

    0Reply
  • Robyn R.
    OP
    Rehabber · Austin, TX · Member since 2013 · 41 posts · 4 votes
    13y

    Thanks for all the replies, bottom line is that I was right to think that was an outrageous price!

    0Reply
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