PM charges too much fee to get it rent ready?
Dear BPers:
we typically identify the specific areas we'd like to invest in and find the PMs to serve as our realtors and future PMs.
In this situation, we bought a house through the realtor/owner of the PM, and we are trying to put in the rental market. However, as we are reviewing the contract with the PM, we realize their fee is much higher than any other PMs we have used. e.g. if I ask my other PMs to get the place rent ready, my other PMs would never charge me a "project management fee" for 10-15% of what the contractors would charge me. Typically, the contractor fee would be a pass through. If my PMs charge me anything, it would be a $35 dollars flat fee (but again, never got charged for coordination). After all, I bought the house through the PM, and am paying 1 month of leasing fee, plus all the future PM fees.
I am really concerned that this PM is trying to push un-necessary work to prep this place because he has an incentive for that reno cost to be high (and even better he can give the job to his friends). And it's been the case, I have told him in multiple occasions, the floor is in good condition, even the kitchen cabinet is good, why is he trying to replace all these items and increase the work?
This PM belongs to a national franchise, and as I said, at other locations, the process of bidding on a project is pretty straightforward and transparent and we are pretty satisfied with the franchise in general. This practice just seems a little odd. Since we are out of state investors, should I be considering other PMs now the trust is lacking from our end or should we negotiate the contract?
Thanks!
Joanne