How to check a manager isn't inflating maintenance invoices
Verify your property manager's maintenance invoices aren't padded. Check registers, request itemised bills, call contractors directly, and compare market rates.
A property manager's job includes finding tradespeople and overseeing repairs, but their invoice becomes your invoice—and inflated costs directly reduce your rental yield. You need to verify that the prices charged are genuine market rates, not padded margins or invented expenses dressed up as necessary work.
Spot red flags before you sign
Start by asking your prospective manager for three recent maintenance invoices from properties they manage. Not estimates—actual invoices paid. Look for invoices that seem bundled oddly (labour costs that don't match the job description, "admin fees" or "coordination charges" that are vague), or where the same tradespeople appear on every single job with no variation in pricing. Legitimate managers rotate contractors and negotiate different rates for different work; if every plumber visit costs exactly the same or every electrician's call-out is identical, something is off.
Ask directly: "Who are your regular tradespeople, and can I see the pricing structure you've negotiated with them?" A manager confident in their arrangements will hand this over. If they're evasive or say "pricing varies," press for specifics. Get the names and contact details of at least two electricians, two plumbers, and two general maintenance contractors they use regularly. You'll phone those people yourself later.
Check whether the manager is registered with the Estate Agency Affairs Board (EAAB) if they're also selling property, or ask for their property management credentials if they're independent. Registration doesn't prevent overcharging, but it means they're bound by a code of conduct and there's a complaints mechanism if you discover fraud.
Verify the actual market rates
Once you have contractor names, call them directly. Don't tell them you're vetting the manager; instead, describe a hypothetical job—a burst geyser replacement, a cracked window repair, routine drain cleaning—and ask what they'd charge. You're not asking for a quote on your specific property; you're establishing the ballpark. A licensed plumber's call-out fee should be consistent across different clients. If the invoice your manager submitted shows a R3,500 geyser replacement but the plumber tells you their standard replacement is R2,200 to R2,800, you've found your discrepancy.
Ask the contractors a second question: "Do you ever work with [manager's name]? What terms do you have with them?" If they say "I don't know that name" or "I've never heard of them," the manager may have invented the invoice or inflated it themselves. Legitimate contractors working with property managers know the relationship and can confirm it.
Request itemised invoices for every maintenance job from that point forward. "Itemised" means labour hours separated from parts, parts listed individually with model numbers or part codes, and a clear description of the work done. A vague invoice saying "repairs to bathroom: R4,200" tells you nothing; one that says "replace tap cartridge (Kohler K-7679-CP): R280; labour 1.5 hours @ R80/hr: R120; call-out fee: R150" lets you cross-check every line.
Ask your manager in writing what their markup policy is. Many managers add a percentage—often 10 to 20 percent—to contractor invoices as a coordination or administration fee, and that's disclosed upfront in the agreement. If there's no written policy and you're discovering phantom markups in invoices, that's grounds to renegotiate or terminate.
Finally, compare your manager's invoices to those of other property managers in the area. If you have a friend or colleague with rental property managed by someone else, ask casually what a typical repair costs them. You're not looking for exact numbers but for whether the range is wildly different.
Verification takes time, but the alternative is paying inflated prices month after month. Strove lets you compare managers side by side and read verified reviews from other landlords—you can see what others have experienced and ask them directly about invoice transparency before you commit.
Common questions
- What's a reasonable markup for a property manager on maintenance invoices?
- Many managers charge 10–20% as a coordination or administration fee, but this must be disclosed upfront in your written agreement. If there's no agreed markup policy and you're discovering unexplained additions to invoices, ask your manager to itemise every cost and justify each component.
- How do I know if a contractor's invoice is genuine?
- Call the contractor directly using contact details on the invoice and confirm they did the work, at that price, on that date. Ask for their standard rates for similar jobs. If the price on your manager's invoice is significantly higher than what the contractor quotes others, your manager may have inflated the bill.
- Should I ask to see my property manager's contractor agreements?
- Yes. A transparent manager will share the pricing structure they've negotiated with their regular tradespeople. If they refuse or claim pricing is confidential, that's a warning sign that costs may not be fairly negotiated.
- What if I find invoices that don't add up?
- Request itemised invoices breaking down labour, parts, and fees separately. If discrepancies persist or your manager can't explain charges clearly in writing, consider raising the issue formally in writing or seeking a second opinion from an independent property manager before you decide whether to continue the relationship.
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