Does my property manager mark up maintenance, and how do I check?
Some management agreements allow a markup, a coordination fee or an in-house maintenance charge on repairs, and some do not. The only way to know is the agreement itself and the vendor invoice behind each repair line. Ask for the invoice, compare it with the amount charged to you, and set a repair approval limit so larger jobs need your yes first.
The ways repair costs can grow between vendor and owner
Repair charges reach an owner through a few different structures. None is wrong by itself. What matters is whether it is written down and whether you can see it.
| Structure | What it means | What to look for |
|---|---|---|
| Pass-through at cost | You pay the vendor's invoice amount | Invoice total equals the charge on your statement |
| Markup on vendor invoices | The manager adds a stated amount to what the vendor charged | The markup is named in the agreement and shown as its own line |
| Coordination or project fee | A charge for supervising larger jobs | A definition of "larger" and how the fee is figured |
| In-house maintenance staff | The manager's own crew does the work and bills you | Rates, minimums and whether you may use your own vendors |
This is general information, not legal or tax advice. Your agreement and your state's rules decide what applies; ask a local attorney or your tax preparer about your situation.
How to check one repair line
- Find the repair line on the owner statement and write down the date, vendor and amount.
- Ask for the vendor invoice and the work order for that repair.
- Compare the invoice total with the amount charged to you.
- If they differ, find the clause in the agreement that explains the difference.
- If you cannot find one, ask the manager in writing to explain the gap.
Example a made-up statement charges $540 for a water heater repair. The vendor invoice says $480. The agreement allows a 12.5 percent coordination charge on repairs over $300, and $480 plus $60 is $540. The charge matches the written terms, so the owner notes it and moves on.
Terms worth negotiating before you sign
- A repair approval limit above which the manager must ask you first, except for emergencies.
- Whether you may use your own vendors, and whether the manager charges anything for that.
- A copy of every invoice with every statement, not only on request.
- No charge on a repair that was caused by the manager's own mistake.
- How tax-deductible repair costs will be reported so your preparer can use them. See IRS Publication 527 for repairs versus improvements.
A habit that keeps repair costs honest
Pick one repair a month and trace it end to end: statement line, invoice, work order, and a photo of the finished work if there is one. Five minutes a month is enough to notice patterns.
Watch for repeats. The same vendor, the same fix and the same part more than once can mean the first repair did not hold or a pricing issue.
Look at timing. A repair dated before the tenant's request, or invoices all dated the same day, deserves a polite question.
Ask for a vendor list once a year. Knowing who works on your property helps you compare quotes for larger jobs.
Keep invoices with the statement for your tax file, since your preparer may need to split repairs from improvements.
How DoorKeeping fits
If you manage repairs yourself, a work order in DoorKeeping goes to a vendor by link and the bill waits for your approval. DoorKeeping is not a property manager and does not change what a manager owes you. It is software for owners who manage their own units, at $2 per unit per month with every feature included. DoorKeeping never holds your money and sends a payment only when you approve it.
Sources
- IRS Publication 527, Residential Rental Property, read Oct 31, 2026
Questions
- Is a maintenance markup normal?
- Some agreements include one and some do not. Read yours and ask for the invoice behind each repair line.
- Can I use my own vendors?
- Many agreements allow it, but some restrict it or charge a fee. Ask before you sign.
- What approval limit should I set?
- Pick an amount that fits your cash reserve and ask for emergency exceptions to be defined in writing.