How do you receive updates from your property manager and/or handyman?
Hello! This question is mostly targeted to landlords and investors but would love to hear input from anyone.
How do you receive project updates from your property manager or handyman? For example, if something is broken, do they typically send a video or series of before and after photos with notes? Is this currently a problem? Curious how this process could be improved and genuinely looking for how it could be improved. Thanks!
#3 Managing Your Property Contributor
My PM uses some software where I get an email if there is a repair and then another when it is done. I get monthly emails around the middle of the month when the rent is deposited into my bank account and it contains a breakdown of all of the expenses.
@Theresa Harris - how much are they charging for repairs? My biggest issue is PM taking a cut for big and small maintenance requests... but I guess it also depends on the size of your portfolio.
#3 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
- Investor
- Austin, TX
- 5,506
- Votes |
- 9,861
- Posts
#3 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
- Investor
- Austin, TX
Always get pictures. If the rehab is extensive, go see it in person. If you are working with a property manager, the handyman is supposed to send a detailed invoice, and pictures to the property manager.
#3 Managing Your Property Contributor
Quote from @Pierre E.:
@Theresa Harris - how much are they charging for repairs? My biggest issue is PM taking a cut for big and small maintenance requests... but I guess it also depends on the size of your portfolio.
They didn't used to charge a fee as that was part of their monthly fee. They just sent out updates for their contract and changed that, but I forget what they are charging now (5%? of the cost).
I honestly don't see why they should be entitled to a cut as they get a monthly fee (9% of the rent; $100-160 in my case) and most months for that they collect the rent (paid electronically) and put it in the bank (also done electronically)-so are very well paid for the amount of time it takes ($100-160 for maybe an hours work being generous as I don't think it takes an hour). They do an inspection periodically (though that understandably decreased during covid). All of the information we get is done through software, so again it isn't like someone is writing a monthly statement. They also collect and extra fee of $30 a month from the tenant for some tenant's package (allows them 1 free call/yr for a lock out, furnace filters (if applicable and I don't know what else), the tenant can opt out. Per unit, I know $130-190 a month isn't a lot, but they manage a lot of units and for the amount of time they spend on it, to me that is a good amount of money.
#3 General Landlording & Rental Properties Contributor
- Real Estate Consultant
- Cleveland
- 3,001
- Votes |
- 5,137
- Posts
#3 General Landlording & Rental Properties Contributor
- Real Estate Consultant
- Cleveland
Quote from @Jeremy Santy:
Hello! This question is mostly targeted to landlords and investors but would love to hear input from anyone.
How do you receive project updates from your property manager or handyman? For example, if something is broken, do they typically send a video or series of before and after photos with notes? Is this currently a problem? Curious how this process could be improved and genuinely looking for how it could be improved. Thanks!
Video / photos of before and after, really not sure what more that can be done. We do about 150k a month in reno/ repairs so I know a thing or two :)
#3 General Landlording & Rental Properties Contributor
- Real Estate Consultant
- Cleveland
- 3,001
- Votes |
- 5,137
- Posts
#3 General Landlording & Rental Properties Contributor
- Real Estate Consultant
- Cleveland
Quote from @Pierre E.:
@Theresa Harris - how much are they charging for repairs? My biggest issue is PM taking a cut for big and small maintenance requests... but I guess it also depends on the size of your portfolio.
As they should, how are they supposed to make money? Also I am sure its still very competitive. Would you rather handle all the calls and deal with the contractors :)
@Jeremy Santy I get an email about the problem asking me how to proceed. I answer them by either saying I will take care of it or have them use their maintenance people. At the end of the month it shows up on my statement. It gets tricky when they use their vendors which I will get an estimate if over $500. Sometimes the problem is charged back to the tenant if they caused the problem.
@Jeremy Santy my agreement/contract with my PM requires any repair work up to $300 will managed by the PM (with my approval). For that, they will add a fee for managing the repair project. For anything over $300, either I will approve and assign the repairs to them (and they will get a cut) or I will hire, manage and pay the contractor directly. In later case, they don't get a cut..For all repairs, an itemized repair estimate is required, once work starts, before and after pictures are required.
@Jeremy Santy As a PM, We subscribe to PropertyMeld which also "talks" to our PM management system. It allows for collaboration between our vendors, investors/owners, and our tenants. It realy helps keep documentation and communication for repairs for all parties and saves a lot of time from having to go back and forth.
Thank you everyone for providing more clarity on how you managed communication between investors and property management. Some great ideas in here and it makes sense to provide photos and video documentation. Do many of you use email for this or add this documentation to Dropbox or somewhere else with receipts and signed proposals for work so you can include this information in one place for tax purposes?
Stating in the contract that any repair work up to $300 will managed by the PM is a great suggestion. Thanks @Amir Khan
I'll check out PropertyMeld @Brad Larsen. ty!
@Bob Stevens Wow, that's great. Nice work. if it's okay with you I would love to reach out and learn more about what you've learned.
Thanks again everyone!
Quote from @Bob Stevens:
Quote from @Pierre E.:
@Theresa Harris - how much are they charging for repairs? My biggest issue is PM taking a cut for big and small maintenance requests... but I guess it also depends on the size of your portfolio.
As they should, how are they supposed to make money? Also I am sure its still very competitive. Would you rather handle all the calls and deal with the contractors :)
I have really seen mostly one PM style. They are very removed, and they coordinate people coming to your property, but they dont actually care for the property. I would be willing to pay for someone to visit the property, make sure things are in order tenant wise and physical property wise, and maybe based on the amount of work needed charge me a quarterly fee but some charge a percent of whatever job they hire someone for... and some other formats... that I find bring less value but more cost. Of course they should be paid just... I havent seen a situation or PM that would bring me the value in the areas I need it the most. I dont need them to charge me for for setting up the tenant portal...
I like what @Brad said and @Amir Khan great points and definitely better setup than I have seen!d
#3 General Landlording & Rental Properties Contributor
- Real Estate Consultant
- Cleveland
- 3,001
- Votes |
- 5,137
- Posts
#3 General Landlording & Rental Properties Contributor
- Real Estate Consultant
- Cleveland
Quote from @Pierre E.:
Quote from @Bob Stevens:
Quote from @Pierre E.:
@Theresa Harris - how much are they charging for repairs? My biggest issue is PM taking a cut for big and small maintenance requests... but I guess it also depends on the size of your portfolio.
As they should, how are they supposed to make money? Also I am sure its still very competitive. Would you rather handle all the calls and deal with the contractors :)
I have really seen mostly one PM style. They are very removed, and they coordinate people coming to your property, but they dont actually care for the property. I would be willing to pay for someone to visit the property, make sure things are in order tenant wise and physical property wise, and maybe based on the amount of work needed charge me a quarterly fee but some charge a percent of whatever job they hire someone for... and some other formats... that I find bring less value but more cost. Of course they should be paid just... I havent seen a situation or PM that would bring me the value in the areas I need it the most. I dont need them to charge me for for setting up the tenant portal...
The PM should be driving by the property about 1 per quarter to make sure the property is being kept properly. Also PM deals with all the repairs and tenant issues. THey should be adding a little to the repairs, how else are they to make money ? Also the cost of the repairs should still be less than you would pay. PM is a thankless business. I have had dozens of properties out of state, I would never want to deal with any of it .
@Bob Stevens good points. I guess I just haven't yet come across a property manager that isnt trying to do the bare minimum... but definitely there is value in a PM that does what is needed.