I talked to an owner in Rosewood last week who was fed up. He had brought his portfolio over to us, and during our onboarding process, we audited his numbers from the previous year.
He had an older HVAC unit that needed significant work, plus a few plumbing issues across his properties—about $8,000 in total repairs for the year.
What he didn’t realize until we looked at the fine print of his old contract was that his property manager was adding a 15% markup to every single invoice. He paid $1,200 extra just for them to make a phone call to a vendor. That is $1,200 straight out of his cash flow, hidden inside a line item called a “maintenance coordination fee.”
This is one of the most common—and most damaging—practices in the property management industry.
The Incentive Problem
If a property management company charges a 10% or 15% markup on maintenance, you have to look at the incentive structure.
If they make a percentage on every repair, they make more money when your house falls apart. If the HVAC breaks, they get a cut. If the roof leaks, they get a cut. They are financially rewarded for your property having problems.
Worse, they are incentivized to use more expensive vendors, or to authorize full replacements instead of simple repairs, because a larger invoice means a larger markup for them.
If I owned your rental property in Columbia, I would never hire a manager whose financial interests are directly opposed to mine.
The Fowler Approach: Zero Markups
At Fowler, we operate differently. We don’t mark up maintenance. Period.
If our trusted local plumber charges $200 to fix a leak, you see a $200 invoice. You pay us a flat monthly fee to manage the property, not to skim off the top of your repair bills.
Because we don’t make a dime off maintenance, our incentive is exactly the same as yours: fix the problem correctly the first time, for a fair price, so we don’t have to deal with it again. We spend our time vetting the best, most cost‑effective vendors in the Midlands, not looking for ways to pad their invoices.
The Math on “Cheap” Management
Many owners fall into this trap because they are chasing a low advertised management fee. A company might advertise an 8% monthly fee, which looks cheaper on paper than a flat rate.
But when you add in a 10–15% maintenance markup, a $250 lease renewal fee, and a $100 inspection fee, that “cheap” manager ends up costing you thousands of dollars more per year.
Protect your cash flow by demanding transparent pricing with zero hidden markups and a structure where your manager only wins when your portfolio performs.
What This Means for Columbia Owners
If you’re comparing managers in Columbia, don’t just look at the percentage on the brochure. Ask:
- Do you mark up maintenance invoices?
- How much are your renewal, leasing, and inspection fees?
- What did your current clients actually pay last year all‑in?
The answers to those questions usually matter more than whether the headline fee is 8%, 9%, or 10%.
If you own rentals in Columbia, SC and aren’t sure what you’re really paying once markups and junk fees are added in, I’m happy to take a look.
Fowler offers a free Portfolio Review where I will:
- Review your current management agreement and past statements
- Show you exactly what you’re paying in maintenance markups and extra fees
- Tell you honestly what I’d do if I owned your properties (keep, fix, switch managers, or sell)
You can request your free Portfolio Review here.