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.”
Maintenance markup is one of several fees an owner should check when comparing management agreements.
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 a manager earns a percentage on each repair invoice, that fee grows with repair costs. Ask how vendor selection and approvals are handled to understand the incentives.
A larger invoice also produces a larger percentage-based fee, so owners should review vendor-selection and repair-approval practices.
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 10% of collected rent for monthly management, not to skim off the top of your repair bills. Fowler’s current pricing includes a $250 lease-renewal fee and $0 tenant-placement fee. Onboarding is a separate fee; we do not publish a fixed public amount.
Because Fowler does not earn a maintenance markup, a higher invoice does not increase that fee. We coordinate maintenance with the goal of getting appropriate work done and keeping owners informed.
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.
Depending on repair volume and the agreement, a markup and additional charges can change the total cost substantially. Compare the full agreement and actual statements rather than assuming a lower advertised percentage is always cheaper.
Ask for a clear fee schedule and a process for reviewing and approving maintenance costs.
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, tenant-placement, and other 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.