Yes, very unethical. MY property manager does this. First they have the contractor sign up for what they call their preferred vendors list.This costs about 300.00 per year then the contractor has to PAY my property management company 5% of whatever they bill us. They tell the contractor that they have to pay this if they want any more work at this complex. THIS IS EXTORTION AS DEFINED IN THE DICTIONARY.
I tell my contractors NOT TO SIGN UP and DO NOT PAY. We , the board hire our own contractors and my management company has approached long time contractors with this proposal. We have a clause in our Management Agreement that says the PM is not allowed to take or receive any monies etc so the PM has set up a different company within their organization to receive their kickbacks .
Barbara P on August 08 2018 at 07:47 AM