Property manager approached me about auditing all 8 units in their strip mall - mix of restaurants, salon, dry cleaner, etc. Bills range from $800-2400/month each. He's offering to handle all the paperwork coordination. Anyone done something like this before?
Strip mall client wants to audit all 8 tenants - worth it?
Did a similar deal with a 12-unit strip mall in Phoenix. Found rate class errors on 4 units - small restaurants on residential rates, beauty salon on wrong commercial schedule. Total recovery was about $28K over 3 years. The key is getting one point of contact who can wrangle all the authorizations.
Make sure your contract is clear about minimum fees per unit. I got burned on a strip mall deal where 3 units had zero findings. Property manager tried to negotiate down the fees after the fact.
Good point Omar. What's your typical minimum fee structure for these smaller accounts?
I do $750 minimum per unit regardless of findings, plus standard percentage on recoveries. Covers the time investment even when you strike out.