Maintenance markup

Definition

What a manager adds to a repair bill, often more of the profit than the management fee itself.

Why It Matters

The headline fee on a door is a small share of rent, and many firms earn as much again from marking up maintenance, leasing, and renewals. Two companies with identical door counts can therefore earn very differently, and only one of them is priced on the fee. Ask for revenue split by category for three years, then read the management agreements for what they actually permit: a markup the contract does not authorize is a refund waiting to be demanded, and it surfaces when an owner changes managers.