Am I being charged too many random fees from my PM?

Question

Hey everyone! I’m new to bigger pockets and was hopping some one could give me some insights into my situation.

Just a little back ground. I have a couple rental properties local where I live and have managed them my self for years.
I wanted to try an out of state deal and found a brrr in Michigan. Everything up to this point has gone pretty badly haha

So my question is if it’s normal to be getting All shorts of fees every month from your management company? Over this last year it’s added up close to 10k!? Seems very odd. I am normally not one to question every little thing and assume most people are honest. But again it’s adding up to a lot and it seems excessive.

Hope to hear from some one thanks

Eliott Elias · Answer

The only thing you should be getting charged is the PM fee. Have them send you monthly expense statements and get to the bottom of this.

Nathan Gesner · Answer

We have no context. Paying $10,000 in fees sounds very normal for a home that rents for $1,000 a month, but extravagant for a $600 apartment.

What does the unit rent for? What fees are you charged?

Have you read your management agreement? This should explain what fees you will be charged and when, so nothing should be a surprise. If you handed over responsibility to someone without a written agreement, or you failed to read the agreement, then it's difficult to assign blame to the property manager.

Theresa Harris · Answer

That does sound normal. You should only have your monthly fee from your PM. If you have repairs or a turnover, you will have other expenses, but they should be clear (eg advertizing, leasing fee, etc). $10K with no major repairs or turnover is excessive.

Richard F. · Answer

Aloha,

There should not be any real surprises, everything should have been spelled out in your Management Agreement. These "fees" should be clearly identified in your monthly reports, with supporting documentation for any expenditures.

You don't give a clues as to what the fees are...but 10K in a year is a lot. Maybe.

Am I being charged too many random fees from my PM?

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