In this blog, we want to discuss our mark-up fee. A mark-up fee is a small service fee that is added to all bills that are paid by us on behalf of an Owner.
First of all, our mark-up fee is 10%. This fee is automatically added to all bills that flow thru your account. This fee compensates us for the administrative cost in managing certain activities on your home and paying those associated bills. Those activities are not handled by our regular contracted property management duties and are not included in our regular monthly property management fee. The most common types of marked-up bills you’ll see are:
Common Mark-Up Items
1. Utility bills and upkeep services during vacancy.
2. Managed and outsourced maintenance (BTW: you are not charged a mark-up on our internal maintenance technicians’ work, that’s billed at a nominal hourly rate).
3. Material and supplies purchased for your home.
4. Any other miscellaneous bills that we pay on your behalf.
It is very common for professional property management companies to charge additional fees besides the monthly management fee. Some companies charge a multitude of ancillary fees, such as set-up, marketing, and vacancy fees, which we do not charge. In addition, many companies also take rebates on contracted services and managed maintenance which can hide the true cost of those services.
Simple, Transparent, and Fair System
We chose the bill mark-up system to be simple, transparent, and fair. We believe in only charging fees when there is an activity that warrants it. That means we keep your total cost as low as possible are you are not charged for us doing nothing.
In addition, to be totally transparent, we also post vendor bills and maintenance requests to your on-line account portal, which you can see 24/7. That way you see all activities and actual cost for the bills that are charged to your property.
Our Internal Maintenance Staff Saves You Money
Last but not least, we do try to complete as much maintenance as possible with our internal maintenance technicians. You are not charged a mark-up on our internal maintenance technicians’ work. They are billed at a nominal hourly rate. Since these technicians are highly skilled and trained, we can generally handle multiple repairs in one visit. This can save you money compared to hiring multiple contractors. But when it’s necessary or required to outsource a repair, we do require all our maintenance contractors to provide at least a 10% discount. So, with that volume based discount, you generally will pay less than normal market cost for professional repairs.
If you have any questions about on mark-up fee on bills and managed maintenance, please don’t hesitate to contact us.