24 Jul (LA) Property Manager is Charging Worker’s Comp to Invoices
Beginning in April I engaged a new property manager for a 4-plex of mine located in New Orleans, LA. The company seems very professional, and relatively well organized. The property is fairly large and there has been regular instances of repairs needed, even after a recent renovation (common problem for older houses in Nola).
I started reviewing receipts over the past couple months and noticed that a worker’s compensation charge was added to several invoices I received starting back in April. These invoices come from handymen, plumbers and electricians, and the charges range from 15% to 25% of the total invoice. I’ve approached the property manager about these charges as it was not described in our contract, and has amounted to several hundreds of dollars to date. The property manager has indicated it is standard practice and is done to work with people that are quicker/cheaper with repairs compared to larger companies that have their own workers comp insurance.
Am I wrong to question this practice, especially since it isn’t in our contract? Should I seek the money back? Is this actually common place?
Thanks for any help in advance!
Edit: I’m very appreciative of all the input! There have been some conflicting suggestions but my plan is to get more information at this point (insurance certificate, copy of internal policies, etc), and lay out clear expectations for any future repairs and charges associated with the property.