Do You Always Get Multiple Bids?

Question

Is it unusual to ask your property management company to get multiple bids for repair work? I’ve always found that contractor pricing can vary significantly, and getting a few estimates helps me make a more informed decision. In this case, I’m getting some pushback from my management company after requesting a second bid on a repairs. Just curious, how do others handle this? Is it standard to expect multiple bids, or am I crazy out of state investor has no idea what he's doing...which may also be true. :-)

Drew Sygit · Answer

@Oscar Lopez really depends on the situation!

1) Emergencies: we trust our handymen or contractors to be fair & quick to avoid tenants withholding rent, tickets and lawsuits.

2) Well-known Item Prices: we've pretty much standarized prices for many common items like smoke detectors, blinds, screens, doors, locks, faucet replacements, etc. It's a waste of time getting bids on these items, especially since their costs are fairly low.

3) Renovations: here it makes since to often get two bids - MAYBE three. We actually charge owners for additional bids past 3 as it wastes a LOT of our time. As others have pointed out the cheapest price means nothing if:
- It takes 200-300% longer to complete
- Quality is unacceptable
- No warranty

4) Uncommon Issues: as @Adam Bartomeo pointed out, stuff we only do once/year or less we have no idea what the cost is. So, we often automatically get 2-3 bids - unless it's an emergency.

Owners constantly make the mistake of expecting property managers:
- To have the accumulated knowledge of a 20-year general contractor
- To have all the time in the world to call 10 contractors, to get 3 that actually show up, but only get a bid from one of them, and then repeat until we get their 3 bids!
- To be accountable in getting the cheapest contractor they picked to do the best work and provide a great warranty. 99% of the time, you get what you pay for, yet owners expect more 100% of the time.

In our experience, owners handling their own maintenance is similar to gamblers going to Las Vegas - you only hear about what they won, NOT how much they lost!

Oscar Lopez · Answer

Thanks for the reply. I figure that would be a good approach to be able to make informed decisions. setting expectations upfront for the management company is actually great advice. Thank you

Eric Gerakos · Answer

All of my vendors are long term and trusted, so no.

Kerlous Tadres · Answer

Not unusual at all, asking for multiple bids is a smart move. Contractor pricing can vary a lot, and as an investor, it’s totally reasonable to want transparency before spending money. That said, some property managers push back because it adds work or they prefer using their go-to vendors.

A good middle ground is to set a clear policy like requesting multiple bids for any repair over a certain dollar amount. Emergencies might be an exception, but for most jobs, you should absolutely feel empowered to get second opinions. It’s your property, your money, and you're just doing your due diligence not being difficult.

Adam Bartomeo · Answer

We get multiple bids ONLY if we do not have a trusted vendor in place or if the repair is an unusual repair (ie, pool resurfacing, cage rescreening). For most repairs we have already negotiated and have built a relationship with a trustworthy vendor. If an owner want multiple bids for these types of items then we kindly ask them to handle the repair process.

Oscar Lopez · Answer

Got it. Thanks for sharing

Jules Aton · Answer

I prefer two estimates unless I'm in an area where I have a long term relationship with someone and then its a no brainer to just call them. In a recent out of state property I got two that were so far apart I decided to get a third which fortunately aligned with the lower initial bid and was the contractor I ended up gong with.

Oscar Lopez · Answer

Thank you for this insightful point of view. Would you still advise for more than one bid?

Doug Smith · Answer

“I felt exactly how you would feel if you were getting ready to launch and knew you were sitting on top of two million parts — all built by the lowest bidder on a government contract.”-John Glenn. I'm a lender and an investor for a very long time. It's been my experience that bids mean nothing if the contractor doesn't execute. Two of my good investor borrower clients are dealing with this very situation right now because they chose the lowest bidder. The theory of a choosing the lowest bid is just that...theory. In practice, you sometimes should pay a bit more for the known quantity...a contractor that you can trust that you've used before, is honest, on-time, and has never let you down.

Do You Always Get Multiple Bids?

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