can a property manager whom handels foreclosed accounts mark up maintenance repairs?

In Property Management - Asked by carrie a. - Jun 14, 2011
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Answer(s)

Rob M.
Lender/Mortgage Broker
Houston, TX

Your wording is very vague. What is the situation? What are you trying to accomplish? Are you the manager or owner?

Jun 17, 2011
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Rob B.
Chandler, AZ

Carrie....
If your property management agreement does not include providing maintenance as a part of the fee that you charge, you can likely mark up maintenance repairs provided.
However, you should get three legitimate bids for the repairs your company provides and your charge should objectively compete with those bids. Also, it would be important to fully disclose to your owner that the maintenance was provided by you after fairly bidding the project, and that the charges did not objectively exceed the amount that could have been obtained from an independent third party vendor.
Onward and upward Carrie... Rob Baird, Corona CA

Jun 17, 2011
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Chris R.
Broker/Agent
Denton, TX

This sort of fee should be covered in your management agreement so that all are aware of the fees and charges that are involved. Such fees should not be charged without them being identified and disclosed to the owners. Justification can be explained that as a professional property manager with relations with contractors you are in a position to get better prices than an individual owner could get on his own and for your time you are deserving of a fee of X (5 - 10%?) of the amount of the repairs arranged for. All is negotiable between the parties and should be spelled out in the mgmt agreement.

Jul 4, 2011
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