Top 4 Bogus Fees Property Managers Charge You

Hello Folks, James White here from Blue Roof Property Management. I want to talk to you a minute about bogus fees. It’s a real pet peeve of mine, so let’s go ahead and dig into what other Property Managers are charging you.

You know my father used to tell me all the time about nickel and diming. He didn’t like it when it was done to him and he absolutely refused to do it when he was in business. I’m of the same mind set as my father and I choose not to nickel and dime you.

So, let’s dig into the Top 4 bogus fees property managers charge you.

The bogus fee number 1, onboarding fees. I don’t know about you, we entered into a business relationship, we signed an agreement, we’re both looking forward to doing business together and BAM, here comes an invoice for $500 just for the pleasure of doing business with me. Just so I can start the relationship. I don’t know about you but that doesn’t make sense to me.

Bogus Fee number 2, Lease Renewal Fee. Isn’t it my job to keep the tenant in the property? That’s what you’re paying me to do, to avoid vacancy when it makes sense to do so. Why would you pay me a fee of $500 to do what I’m supposed to be doing anyway? It doesn’t make sense to me.

Bogus Fee number 3, Maintenance Markup. Folks, I’m here to tell you this is a big one. Pay attention to this one. If a property management company is coordinating a maintenance repair between a vendor and tenant, and doing their job, doing a nice job taking care of the property and an invoice comes in. Guess what, now all of a sudden they are now marking it up as much as 20%. Here’s another piece of information you need to know, vendors, tradesmen, their marking up material costs 25 percent already. This is before the invoice reaches the property management company and now their tagging on 10 to 20 percent on top of it. That just doesn’t make sense to me.

Bogus Fee number 4, Inspection Fees. You’re paying me to take care of your property, you’re paying me to be sure the tenant we placed in the property is taking adequate care of it. Why would I charge you more money to do my job? This drives me nuts. You better check your property management agreements folks. I’m telling you these things might be in there and you’ll be surprised how much more this can cost you.

Final Thoughts. Here are some final thoughts on the matter. I like to keep it as simple as possible with two essential fees during the life of the tenant. Lease Acquisition Fee = 50% of one month’s rent and a Management Fee = 9% of the collected rent, no collection no charge to you. Again, it’s my job to collect the rent. Above and beyond our Full Service Offering which includes every caveat, process and procedure for us to properly manage your property we do offer Ala-Carte Premium Services if you choose they are important to you. Some clients may want an additional inspection as an example we can accommodate that with an ala-carte offering.

Curious if you folks are seeing any other bogus fees in your management agreements, do me a favor and drop them in the comments section below. I’d like to keep track of it. It may prompt another video down the road. Any questions, concerns, or comments, you want to speak to me directly, you now have my email address on the screen as well as my phone number.

If you want to see what we charge for our services and what is included with our services all you have to do is take a trip over to our website https://blueroofpropertymanagement.com/pricing/ we’re transparent with our fees and I’d love to talk to you. Until next time, have a great day.