Maintenance Coordination Fees
…and Why You Should Never Pay Them
When considering hiring a property manager to care for your largest investment(s), it is important to understand all of the elements that you will be paying for. It’s equally important, and will pay off with significant dividends to know what you shouldn’t pay for – and maintenance coordination fees should be a huge red flag for landlords.
Typically, full-service professional property management fees range from 5-10% , depending upon what’s included with their service. These fees are built into the rent collected, and are considered industry standard.
What you should be aware of, however, are the ‘surprise’ fees that often get slapped into the fine print, or left out altogether until they show up on your next invoice. The biggest offender of such fees are those listed as, “Maintenance Coordination”.
Maintenance coordination fees are how some property managers pad their income, all under the guise of hiring the contractors and vendors to perform routine updates, repairs and upgrades to your property.
If your property requires a landscaping company to mow the lawn or remove snow, etc., some managers charge you a ‘coordination’ fee to go out and hire the landscapers. Need a painter for the interior? That’s gonna cost you an additional $XX.00 for them to find and hire a painter. What’s that? Need the exterior of your home painted? That’s a different company, and therefore it’s a different maintenance coordination fee. There’s a fee for hiring the plumber, and another fee for hiring the roofer… you get the idea.
Lest you think that maintenance coordination fees are worth the peace of mind they offer since you don’t have to hunt down and interview the contractors, consider this: many property management companies make MORE on these maintenance coordination fees than they do for their management of your property. Oh… and YOU are the one paying!
Here at Legacy Properties-PM, we have NEVER charged a maintenance coordination fee. We NEVER WILL. There are never any surprises with us, which is why we are considered by many as Denver’s preferred property manager. Contact us today with any questions you might have.