Property Management company and repair quotes

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Property Management company and repair quotes

Adam TeshomePro Member
Member since 2021 · 13 posts · 5 votes

Is it a conflict of interest if my PM company only provides quotes from their in house team? I am worried that I am paying too much for turnover/major repairs without collecting multiple quotes...

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Drew SygitBusiness Member
Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
4y

Brad Hammond is correct that PMC's make money from maintenance work - why wouldn't they? Would you work for free?

What both he and you are missing, is that you have no idea if you are being overcharged!

PMC's do NOT have a product to sell, they sell service. As such, you are really buying their time/expertise.

Adam, how much per hour do you make at your job? Has your boss ever come to you and stated, "I am worried that I am paying too much for..."? Like most of us, you probably think you deserve a raise.

So, why don't you do some investigation online to figure out what others may charge for these maintenance issues you're so concerned about? There are many wesbites that will estimate a job by zip code. We often use  https://www.homeadvisor.com/pr...

[email protected]248-209-6824
Logical Property Management4.9458 Reviews
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  • Brad HammondBusiness Member
    Real Estate Agent · Portland, OR · Member since 2016 · 1k+ posts · 605 votes
    4y

    Hey @Adam Teshome.  Your management company is making money off of your maintenance requests.  That is a big revenue generator for them. I would look at your contract with them and see what your options are.  

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  • Adam TeshomePro Member
    OP
    Member since 2021 · 13 posts · 5 votes
    4y

    Thanks Brad. I need to start demanding more out of them. They need to manage my building and I need to manage them. Is it normal to task them to get multiple quotes? There is nothing in the management agreement relating to soliciting 3rd party quotes.

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  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
    4y

    Brad Hammond is correct that PMC's make money from maintenance work - why wouldn't they? Would you work for free?

    What both he and you are missing, is that you have no idea if you are being overcharged!

    PMC's do NOT have a product to sell, they sell service. As such, you are really buying their time/expertise.

    Adam, how much per hour do you make at your job? Has your boss ever come to you and stated, "I am worried that I am paying too much for..."? Like most of us, you probably think you deserve a raise.

    So, why don't you do some investigation online to figure out what others may charge for these maintenance issues you're so concerned about? There are many wesbites that will estimate a job by zip code. We often use  https://www.homeadvisor.com/pr...

    [email protected]248-209-6824
    Logical Property Management4.9458 Reviews
    WebsiteView Page
    1Reply
  • Elizabeth Richter
    Specialist · Tyler, TX · Member since 2017 · 14 posts · 5 votes
    4y

    @Adam Teshome I would say not conflict of interest. They have the in house team as a way to streamline their process. If they have their own maintenance team, they likely have too many clients to be calling 3rd parties for every turnover or maintenance request.

    If there’s nothing in the contract/agreement about it, I would ask. Maybe you can arrange something to where you pick your own contractors/maintenance people and your PM company makes a note that for your properties, these specific contractors are to be used. But be aware that they may end up charging a “finders fee” or something along those lines to contact and manage those 3rd parties and it may not save much if any money.

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  • Adam TeshomePro Member
    OP
    Member since 2021 · 13 posts · 5 votes
    4y

    Appreciate everyone’s insight. Great feedback!

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  • Tracy StreichPro Member
    Real Estate Broker · Tulsa- OKC Oklahoma · Member since 2017 · 868 posts · 801 votes
    4y

    I would agree with @Drew Sygit.  Do some research or get some bids on your own.   Here is the problem the PM has.... Use their crew with total control of the work flow and the speed at which it gets done.   Get 3 quotes for every owner, take longer and piss off every vendor  in town because they are running around getting quotes all day.   It is a fine line and often their in house crew can get it done before you even have quotes back from the other vendors.  

    [email protected]918-728-8080
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  • Colleen F.Pro Member
    Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
    4y

    @Adam Teshome   If it is not in the contract timewise it may still be wise for smaller repairs. For major repairs  I would ask get a competitive quote.  Not sure where their in house team ends.

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  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
    4y

    @Tracy Streich well said!

    [email protected]248-209-6824
    Logical Property Management4.9458 Reviews
    WebsiteView Page
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