This is the longer version describing the limits of duties, tasks and responsibilities as their manager. This document evolved over 20 years as our way of answering the owner’s question “what am I paying you for anyway?” It lays out what we do for the procurement fee, renewal fee and monthly management fee. It’s detailed and won’t be exactly as you do it so you’ll have to tweak it to fit your model.
Click to see what the receipt looks like
Most owners don’t know what property managers do for the fees they charge resulting in tension between owners and managers over unrealistic expectations.
To make this worse, some managers think they are supposed to manage the owner’s utilities, HOA issues, home warranties, insurance issues, tax reporting, property tax issues, property line disputes and basically everything that remotely affects the property. If owners have managers in other parts of the country/world they may come to you expecting you to manage all these things for the monthly fee you quoted them. If you don’t set these expectations and put bookends on the services you offer for the fees you charge, they will bully you into doing things you don’t know how to do, have no experience doing, don’t have the authority to do and are not getting paid for in order to keep your owner happy.
Over the years, managing for about 3,000 owners, we’ve fought these battles and, out of necessity, developed several strategies to push back (put bookends on our services), set expectations and let the owner know what we do for the fees we charge and what will cost more if they want additional services.
Just to be clear, you can choose to do anything the owner asks you to do and you don’t have to charge for it. You just don’t want the owner to EXPECT IT for the monthly fee you’re receiving.
Download (PDF, 417KB)
The Property Management Lifecycle by Crown Investor Institute LLC