Should PM provide itemized receipts

Question

Hi all, I’m a property owner in SC and use a PM. Recently, our PM company responded to a work order to fix a malfunctioning microwave. After diagnosing the issue, noting that replacement parts weren’t available, and ordering a new microwave, we received a bill for about $660. It seemed high, so I asked for an itemized receipt. The PM claimed to not provide itemized receipts. So we went directly to Lowe’s, who provided a receipt for microwave, installation, taxes, etc. totaling about $530. We don’t have any explicit wording in our PM contract regarding coordination surcharges, but would a 25% surcharge be reasonable?

I’ll add that we were already charged approximately $90 for the initial microwave diagnosis service call separately. So over $750 all-in.

Is there anything we’re not considering? What would you do in my shoes?

I’ll add that we were already charged approximately $90 for the initial microwave diagnosis service call separately. So over $750 all-in.

Is there anything we’re not considering? What would you do in my shoes?

Corby Goade · Answer

I own and operate a property management company- we don't mark up invoices and provide anything our clients want to see.

The short answer is yes, they should provide you with an itemized reciept and if they are markign up, that should be a clear line item. In my opinion, if they don't want you to know that they are doing that, then they shouldn't be doing it.

If they are, they should be able to clearly and confidently explain how they added value in that transaction.

This is actually they entire reason I started my own PM company- I believe that the % you pay is for them to handle the day to day stuff like this, seems unethical to charge more when they actually have to put in some work.

Caleb Brown · Answer

They should be able to provide that. Some won't but I would want that so they aren't pulling random #'s out of the air. They should be able to provide the microwave cost and labor on top so you know what they charge on repairs. Is there anything specific in your agreement with your PM on this?

Adam Bartomeo · Answer

We do everything we can to be transparent with our owners. We provided receipts and explanations of maintenance that was done. Sometime the explanation is not as detailed as the owner would like so we would do our best to provide a satisfactory response. If a company is unwilling to provide this information it would immediately throw a flag for me and create distrust.

As for the extra dollars unaccounted for, it could be a number of things - repair persons fee, management fee, failed repair, etc.

Sarah Rosko · Answer

As a property manager, we provide itemized receipts for transparency. If an issue is urgent or under $500, we handle it immediately without prior owner approval, but always keep owners informed on repairs. Regarding invoice markups, we apply a 10% markup on invoices under $1,000. A lack of itemized billing and high surcharges could be a red flag. Having a clause for transparency on repairs and fees in your contract can help prevent unexpected charges, so you may want to discuss adding this with your PM.

Account Closed · Answer

Perfect, thank you for all the helpful insight. I was just telling my wife that they’d probably be happy to get rid of an owner that’s in the weeds as much as us. Maybe we can mutually part ways. Thanks again

Account Closed · Answer

Thanks for the response and for confirming my gut reaction. For extra context, after much back and forth, they stated that the total cost includes “the charge of the replacement purchase and labor to install it,” which seems just vague enough to imply it’s for just the microwave and install, but also allows them some wiggle room to add a fee in case we get an actual receipt and catch them in a lie (which we did)…

Corby Goade · Answer

Their office staff ordering the microwave and coordinating delivery and install would qualify as "labor," so I don't think there's much there.

I'd honestly just call them and ask. I can't really tell if you have the contractual right to cancel mid year from what you've provided here, but they might be happy to part ways. Sometimes we get calls like this from clients and it's a blessing, lol.

Yes, the lease would stay in place regardless of who is managing the property.

Corby Goade · Answer

Sure thing- happy to help you in any way I can.

Marking up invoices is unethical in my opinion, but it's not illegal and I don't know if your contract allows the PM to do that- it's very likely that they have every right to do so.

Read up on the termination clause and get a feel for your rights. A good PM will have a 30 day, no cause termination policy. Keep in mind that there may be legit charges associated with termination- for instance, they may need to hold some funds in escrow to cover lingering utility bills or cleaning after that 30 day period.

Best of luck!

Laura Stayton · Answer

We have in our management agreement what amount of work we're authorized to have done without an approval from an owner (ours is $350)  If you don't have that, I would request that.  I also would 100% expect an invoice for the microwave.  Major red flag for me that they won't give you one.

Account Closed · Answer

Clarification... I manage 24 short term rentals.

Should PM provide itemized receipts

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