Property management fees

[Carole G.]

Hi,

Just wondering what others who use property managers in Mesa Az area are paying their managers for upcharge on service calls.  Mine adds 25%, which I think is outrageous.  

[Nate T.]

I know of one property manager in Mesa that I think is actually good.  They  charge 10% on the management fee which is on the high end, but they don't mark up service calls at all.  Feel free to email me if you would like the contact info.

[Carole G.]

I'm paying 8% for management, but they are killing me on these service calls. Will message you. Thanks!

[Robert Gilstrap]

To all owners who think their PM company is not marking up maintenance...Are you stupid? of course they are marking it up, do you think it is free for them to:

take the tenant call

evaluate the complaint and troubleshoot

locate, train and properly vet a vendor

coordinate that work order with the vetted vendor and tenant (4+ phone calls minimum)

follow up on its completion with before and after pictures and archive that data.

process the vendor invoice and pay the vendor.

account for the money and handle all the backend accounting.

stand behind the work that was done and warranty it.

and take the liability and risk associated with the maintenance call in the first place?

You are delusional if you think otherwise. We markup maintenance on every work order and still lose $5K - $10K a month in our maintenance department. Maintenance is not a profit center for PM's; it is a necessity for staying in business.

[Carole G.]

@Robert Gilstrap   How much do you mark up your service calls?

[Dick Rosen]

Robert Gilstrap makes a great point!

We mark up 10% and our clients see the 10% markup, it's not a hidden fee. Those who say they don't mark it up are likely marking it up more than you think but it's hidden.