I'm curious how you bill your property owners for maintenance hours? Do you charge a higher flat rate property management fee and include some of your maintenance hours or do you bill each property owner only for the hours worked on their property each month?
Typically, property managers we work with will charge a percentage of rent and then charge hourly for handymen. If the property is larger, the percentage will be less but the owner is now covering salaries for on-site personnel. I have a partner with a 60 unit property who pays 6%; this is considered high for this size of property however, the property manager provides the owner with an onsite handyman for 2 days a week at no additional cost. It really depends on what works best for your firm and your clients.
That is helpful, thank you so much!
There are 3 ways PMC's charge owners for Maintenance:
1) Hourly: most common and is billed for the time servicetech is at the property and getting materials. Owner has no idea how much PMC pays their servicetech.
2) Per Job: owner charged by PMC based upon materials and what PMC hired contractor charged. Problem is, most PMC's do NOT share the contractor or material invoices, they just send their own invoice. Owner has no idea of actual cost.
3) Markup on Actual Cost: owner agrees to a markup percentage and PMC shares all actual costs for supplies and contractors.
Beware of any PMC that claims they don't charge a markup on maintenance. If they are using methods #1 or #2 above, their markup is actually built into their pricing!