Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 16%
$32.50 /mo
$390 billed annualy
MONTHLY
$39 /mo
billed monthly
7 day free trial. Cancel anytime

Let's keep in touch

Subscribe to our newsletter for timely insights and actionable tips on your real estate journey.

By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions
Followed Discussions Followed Categories Followed People Followed Locations
General Landlording & Rental Properties
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 4 years ago on . Most recent reply

User Stats

1
Posts
1
Votes
Brian P.K. Jones
1
Votes |
1
Posts

PM asking me not to negotiate with vendors. How to respond?

Brian P.K. Jones
Posted

Hello, I've been working with a property manager for 6+ years now. The PM recently sent me a concerning email asking me not to negotiate with the vendors they bring on to provide estimates, and for me to trust that the prices these vendors provide will be the best. The email goes as far as to say that by negotiating with them, it creates a strain on their relationship (with the vendor) and may bring about concerns on the vendor's end that if other clients will also engage in negotiations.

For context, though I'm only speculating that it may have been this latest interaction that prompted the email - I received an estimate, decided to call the contractor, which I've done many times in the past with other estimates. When this particular contractor realized I didn't need anything fancy with the work, he proceeded to adjust his bid. I took that cue to see if there was some wiggle room. After 2-3 back and forths, the contractor and I agreed on a price. Before ending the call, I ask the contractor to text me the details; he said he would reach out to the PM instead. I, too reached out to the PM relaying my conversation w/ the contractor and the PM agreed to follow up. A day or two later I instead get the response detailed above.

Is this a "proper" response for a PM to send to a client? Asking me not to negotiate, wouldn't that go against my interests? And for a contractor to express his dismay to the PM about negotiating with a client (even though negotiating comes with the territory), wouldn't that be unprofessional? I understand PMs work to build a relationship with vendors (though in this case, I believe they've only worked on two jobs, so I think the relationship just started), but I always figured to avoid any conflicts of interest, any relationship (between PM and vendor) ends with "you do a great job and I'll bring you more clients"; any discussions about pricing, discounts, etc. should only be between client and contractor once the introduction is made by the PM, and any further involvement on the PM's end would simply be limited to passing contracts between parties for signature and making the initial and final payments on behalf of the client.

As you can imagine, with the years we've worked together I'm at a loss on how to respond; if I should at all or just leave it alone and see what comes about the next time a contractor needs to be hired for a repair. It's possible the PM was having a bad day and didn't realize the tone of the email when sending it

Thanks for taking to time to read. Any insight is greatly appreciated!

Most Popular Reply

User Stats

28,238
Posts
41,448
Votes
Nathan Gesner
  • Real Estate Broker
  • Cody, WY
41,448
Votes |
28,238
Posts
Nathan Gesner
  • Real Estate Broker
  • Cody, WY
ModeratorReplied

I agree with Mike. If you want to spend time getting multiple bids and negotiating with contractors, cut the PM loose and do it yourself. I have spent years developing relationships with vendors I trust. I don't charge markups so my only incentive is to get the job done quickly, correctly, and for a price that makes my Landlord happy. If a Landlord calls my vendor three times to negotiate prices, it's costing my vendor money and they won't be happy. That reflects back on me and I have to work with that vendor for hundreds of other rentals and Landlords. Not good.

If your vendor is charging you a portion for each job, then that may be the reason. I suspect it's because you're bothering the contractor and it's interfering with the business relationship. 

  • Nathan Gesner
business profile image
The DIY Landlord Book
4.7 stars
191 Reviews

Loading replies...