Do Property Management Companies Charge Fees on Property Bills?

[Nathan Faselt]

I wanted to get your thoughts and experiences, Do any of the property management companies you use or work for flout the bills for the properties they manage and charge a small fee on that capital?

I was under the impression that most management fees were supposed to be separate from the capital expenses of a property.  They PM is acting as a bank kinda so idk,  Has anyone else experienced something like this? Is it common practice among property management companies? 

I would love to hear your thoughts and experiences on this topic. Do you have a property management company that flouts the bills and charges a fee on top of that capital? Or do you run a property management company that you work for that engages in this practice? Let's start a discussion and share our knowledge and experiences with each other.

Thank you in advance for your insights!

[Richard F.]

Aloha,

I'm sure laws vary from one state to another, but in my experience NO, the PM does not "loan" money to clients by paying for any type of work or expense. We cannot commingle our funds with client funds. What is apparently somewhat common are PM's that upcharge work done by contractors on clients properties. I have not personally seen that practice at companies I have been with for routine work (and don't really understand why it would be necessary). I have seen it as an additional, negotiable, charge for major projects such as fire restoration or complete renovations which is agreed to at the outset of the project.