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Does your PM receive 'kick backs' from tradies?

Discussion in 'Property Management' started by Abooking, 2nd Jul, 2015.

  1. Abooking

    Abooking Well-Known Member

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    I've often wondered if my PM receives kick backs from tradies that are sent to do jobs at my I.P

    My PM is often disappointed when I use my preferred (cheaper) 'handyman' to do most work at my house instead of her professional guys. After many years Ive realised that if I let the PM chose the tradie it turns out to be so much more expensive.

    Do you nominate your own tradies or do you let the PM decide?
     
    Jessproperty likes this.
  2. sumterrence

    sumterrence Well-Known Member

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    I have the exact same feeling, lately I've realize my QLD PM has been quoting me crazy prices for repairs, while she doesn't show she's disappointed but I do feel that they are not as honest as I would thought.
     
  3. EN710

    EN710 Well-Known Member

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    I let the PM decide usually. If I think the quotes are too expensive, then I ask for more quotes
     
    Esh likes this.
  4. zimbyzim

    zimbyzim Member

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    I think sometimes is just easier to call some-one you have the phone number/relationship with
     
  5. geoffw

    geoffw Moderator Staff Member

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    Perhaps. But my wife isn't so good at fixing things. ;-)
     
  6. MRO

    MRO Well-Known Member

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    My wife used to be a PM. Unfortunately she didnt receive any kickbacks.

    PM's like using their own tradies as they can get a reliable outcome and problems, if they arise, can be fixed.
     
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  7. D.T.

    D.T. Adelaide Property Manager Business Member

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    Is that why you're still broken? :p
     
    geoffw likes this.
  8. bob shovel

    bob shovel Well-Known Member

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    I think you'll also find it's keeping it in the family, or friends of family. probably more common in smaller Towns. I dare say kick backs of the cash variety are a thing of the past
     
  9. DaveM

    DaveM Adelaide Buyers Agent & KFC Strategist Business Member

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    A good PM should not, and any rebates from trades should be disclosed in the management agreement.
     
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  10. thatbum

    thatbum Well-Known Member

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    It seems to a bit rude to insinuate that a entire profession routinely engages in that sort of unlawful/unethical behaviour without any evidence...

    I've never actually heard of it happening and its been keeping a pretty close eye on the property management sector in my neck of the woods.
     
    Lil Skater, Kael and D.T. like this.
  11. DiligentPM

    DiligentPM Well-Known Member Business Member

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    Good evening fellow Property Chat colleagues
    From our experience as PMs (my business partner and I) I would like to share that no kick backs are received at all. What is important for ethical practitioners is to have reliable contractors on hand who do not charge unreasonable fees (as fellow investors with multiple IPs it is critical for owners to be able to afford work that does not compromise quality); many PMs build relationships with contractors where call out fees are not charged; quality work is undertaken and contractors are sourced who clean up after themselves. From our perspective what is critical is to offer owners a fantastic service which includes referring work to contractors who are fully credentialed in a trade as well as insured; who offer a reasonable rate and a quality service.
     
  12. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    My experience is quite the opposite. My PMs regularly get me deals with tradies that I think are incredibly cheap and the work is great quality as well. They use their volume to negotiate great outcomes.
     
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  13. Pistonbroke

    Pistonbroke Well-Known Member

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    I resemble that remark.
     
  14. D.T.

    D.T. Adelaide Property Manager Business Member

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    Geoff's wife didn't fix you either? :p
     
  15. HUGH72

    HUGH72 Well-Known Member

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    Depends on the PM, if they have used one who did a good job previously I will suggest we use them again. I am familiar with many of their preferred tradies and will continue to use them until I get burned.
    Anything that comes back with an expensive quote I make sure I get another if I didn't originally.
     
  16. S.T

    S.T Well-Known Member

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    it's important to give your PM feedback if you think the quotes are too expensive, or you weren't happy with the job. What frustrates me is when I get a very high quote from a PM's preferred tradie and they are reluctant to get more quotes.
     
  17. Kael

    Kael Well-Known Member

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    For me, it depends on the tradie they use. For example, my tenant notified my PM about a leak in the roof after one of the big storms last year in Sydney. I instructed my PM to send someone out to do a quote on the issue and the tradie went out there and instead of doing the quote, he completed the work and came back with "It wasn't worth doing a quote on it, I just did the work" and charged me about $300 for a roof tile to be moved back into place. If I ever have any roof or leak issues again, I'll be instructing my PM to use a different tradie or I'll find someone myself.

    I don't think my PM's have ever received kick backs though.
     
  18. geoffw

    geoffw Moderator Staff Member

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    There's a big difference between broke and broken.
     
  19. Pistonbroke

    Pistonbroke Well-Known Member

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    Likewise between 'fixed' & getting 'fixed'.
     
  20. Chomp

    Chomp Well-Known Member

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    I have a strata manager that needs to be kept an eye on for such behavior, I would guarantee he is getting kick backs.