Many property managers have found what, for them, appears to be a diamond in the rough. Due to the economies of scale enjoyed by working with a professional property manager, many vendors are willing to discount their services by as much as 20%, in some cases. But rather than return this benefit to the property owner, the property manager makes arrangements with the vendor to pay them, rather than pass it along to the property owner.
According to statute, all rebates earned by real estate brokers either directly or indirectly from real estate services are required to be disclosed to the property owner. In many cases this is done, but despite the law, in others it is not. In some cases where the disclosure is made, it is obscured by small mice type, or hidden is some seemingly irrelevant exhibit to the property management agreement. In cases where the disclosure is not made, the property manager has come up with a clever scheme to have the rebate paid to a wholly owned subsidiary or apparently unaffiliated business entity that would demand a formal investigation to reveal the connection to the management company. At worst there is good reason to question the legality of this scheme, and at best it is unethical. It is regrettable that a professional property manager would do this, but it does happen from time-to-time. If your maintenance costs seem to be on the high side of price, perhaps you should ask for an explanation.
Daniel R. Wilhelm
Residential Management Professional
3 Options Realty
If you have been rummaging through web results for “property management companies near me,” then you are at the right place. 3 Options Realty’s property managers in Atlanta are experienced and trained to deliver top-tier service. Call 3 Options Realty to speak with a friendly representative today to learn more about our property management & real estate services. We are ready to take your call.
We use professional market research to determine fair-market rent, and we use broad market advertising to reach a large audience. Our agents will also help you prepare your property and skillfully present your property. Prospective tenants will undergo comprehensive interviews and background screening before we negotiate with them the rental agreement using our proprietary, attorney-reviewed forms.