Does anyone else find that quotes through PMs are too high?

Compared to what I have paid for work at my PPOR. Indeed I intend to use the same plumber for my extension. His quote wasn't the cheapest, but was certainly in the lower part of the range and he's proven reliable.

As for the handyman, well, I know what the lock cost at Bunnings

 

180 for lock replacement and work on letter box is not much....if the work was reqd.....which it likey was.

No one does work based on just what the part/s cost.

 

Indeed. That's why I thought the quote was reasonable...ok, I admit it...bloody cheap! I didn't check the lock (but the PM did). As for the post, I knew it had started to rot before the tenant moved in, so it was a case of "when" rather than "if".

 

Hi Wiz,

Do you mind me asking did the quote require a site visit for the original company to quote? And if so for the subsequent quotes you received did 1) those companies go onsite to assess the job or did you provide them the details of what needed to be done and 2) did they know the amount of the original quote or did they come up with the $400 cheaper quote independently?

- Luke

 

Maybe I’ve been unlucky but I’ve never met a PM who is responsive (replies in under 48hr) or worth it at all, either as a tenant (they tend to be really nasty to tenants) or owner. I’ve completely given up on them in Sydney and never been lucky in Vic or Qld either...

 

I got a quote $477 just to replace hinge on the oven door, where part of it is $132 service call for them to come and quote. If I don't proceed with them, I have to pay for that $132 service call still. I Is there anyway I could get away with paying that? Just engaged this PM, and she costs me a lot of expenses already

 

Hi Luke. In that specific example, neither myself nor the PM sent out anyone to quote. To try and cut a long story short, the quote was for some replacement appliances, and I already knew exactly what models the house had, and which new models would replace them. The quotes were independent - I didn't tell them the price of the first quote.

This is not an isolated example though. It seems to happen every time, regardless of what the quote is for, or what work is involved.

I don't think the PM is doing it deliberately. I think the PM is honest and doing their best. I am just a bit suspicious that companies/tradespeople are hiking up the prices a bit (for whatever reason) when they go through PMs.

 

Pretty standard for appliance repairs.

Did the PM break the hinge on the oven door? If not I can't see how it is attributable to the PM. Interesting that they have just taken it over. Completely normal on a handover when making contact with the tenant to be given a list of maintenance items reported to previous agent but never actioned. From memory my record was 3 pages.

- Luke

 

Fair enough no it shouldn't be like that every time.

This part of the equation, price for volume, is often completely overblown in terms of expectations. When was the last time you had a tradie knocking on your door begging for your business? Or you call them and they say "Thanks so much for the opportunity I will be there in an hour?". Normally it is more like "mate I'll try and squeeze you in 3 weeks from now but no promises". More so than price you can leverage the relationship in terms of time.

- Luke

 

PMs arent in the business of acting as a personal shopper. They use a narrow number of very reliable maintenance people (who have a TFN and ABN and are reg for GST !!..and teeth who wear clean clothes) who offer fair prices but often they arent as cheap as many small tradies who may be a backyarder etc you may find using less reputable sources. Some PMs will access good service (and pricing ?) based on volume but dont expect trades to drop their pants everytime for frequency of work - Its still infrequent. They may also be valued for their timing and quality. And honesty. Things costs what they cost. A retail business will charge more than a little sole trader guy out of a rusty 1970 kombi. A cheaper person may be unreliable and leave them waiting for paperwork etc. After all the PM will be paying the bill.

In most cases you receive a quote after the PM has asked their trade person to look at it, then quote it. So they have had to diagnose the issue involving travel and determine the cost to them in parts, materials, travel and time. Or they use a guestimate based on experience. You then come along and know the defect and ask a person for a cheaper quote who avoids all that. And still probably expect to be paid cash then and there which the agent wont do. A reliable tradie may even be computerised and issue emailed quotes and invoices where the backyard maintenance guy has a invoice book a pen and mobile.

You need to choose if you would prefer to be the one who sources quotes and engages tradies and then add in the hassle of co-ordinating this. I would caution about using the agent then wasting their time. They may be very happy to leave you do it. But you may need to co-ordinate entry for them too and arrange for a key pick up. Would you trust them not to copy the key and accept the tenant complaints or tribunal claim if they did !! You may affect the tenants rights.

 

I'm not sure if you are responding to my OP or someone else, but this does not reflect my experience. I have absolutely never regarded my PM as a "personal shopper." That would be a very disrespectful way to think of someone.

I would understand why my PM's quotes are always higher if the tradespeople quoting for the PM were putting in extra diagnostic work etc that my own tradespeople were not. That is not what is happening in my case. I get my own quotes and my own tradespeople visit the property in order to quote if that is required.

I also pay my own bills directly (not in cash). I never get the PM to do it. I only work via written quotes sent to me via email. I don't use backyard guys. I only work with reputable and licensed tradespeople. The PM still organises access to the property in the usual manner though. I don't do that part.

My PM already knows that I like to organise my own quotes and tradespeople. I don't ask the PM to get quotes, the PM just does it anyway.

It is because of the above that I really don't understand why my quotes are always coming out quite a bit cheaper. I don't think the PM is doing it deliberately. The PM usually seems pretty surprised at the discrepancy. In one instance, the quote via the PM on a replacement item (supply only, not installation) was actually more expensive than the retail price, even though the quote said they were giving me a discount. That is suspicious.

 

Why worry....

PM gets me 3 quotes around 5 to 7k

I get someone very experienced for 700, PM prob could not deal effectively with trades and prob suggestec what the job reqd....so trades quote on what they say......how many would counter with a much lesser quote...

 

I think many, but certainly not all, tradies jack up their prices when they know it is a rental property being managed by a third party. They take advantage of the old principal/agent conundrum of different incentives.

After a certain price point, I generally organise trades myself and provide the details to the PM from there. Often it works out considerably cheaper than having the PM organise it and often results in better workmanship. This is not a criticism of PMs, they just don't have the time to thoroughly search out good quotes, good reviews etc and follow up things after the job.

When I find a good tradieI usually build a relationship with the them and then request the PM to use for example, that particular plumber, painter or tiler. I always use my own handyman on my properties for that reason, because I know him well and he charges much less than those used by the PM.

However, sometimes it is the other way round. For example, the electricians the PM use are very reasonably priced and very honest in assessing the work, I even use them for my PPOR.