How to handle a sketchy charge from your PM

Question

Hello BP community, wanted to pick your brains.

My property manager made some mistakes on Buildium and I pointed it out and they fixed it after a lot of back and forth emails. It seemed to have irked them because they tacked on a "$100" service fee after this. I asked for the receipt and have not a heard a response about the receipt in 4 days.

They explained that the fee for $100 was for turning on a gas valve with union rates. Here's the quote "Well we couldn't get the gas turned on because of bad valves and unions that was the $100 charge, nothing to do with the agreement it was a service call and we can;t have gas leaking out into unit."

However, I purchased this home in winter and the gas had to have been on or the pipes would've burst. I closed on the unit 2/5/17 and a tenant was placed by my PM on 3/1/17 for 1/2 month rent. I was also charged utilities for February. This service charge was for March so how were utilities going with this 'gas valve' issue?

I'm paying this PM 10% in northwest Indiana.

Can anyone advise on this situation? Does anyone have a good recommendation for other PMs in Northwest Indiana?

I made a mistake of signing a yearly agreement rather than a month to month agreement.

The PM did a great job placing a tenant in my unit, other than that it has been one thing after another. The PM could not provide me any information on tenant screening or their process, and I'm concerned about the tenant quality but there's not much I can do because the PM has been unresponsive to my emails.

Thanks to all who respond in advance!

Scott Steffek · Answer

Ray,

I use Property Boss and haven't had any problems. I know Karen well and I can't see her charging you for something like this, if it wasn't justified. I'm NOT saying you're lying. It sounds like to me, there might be some miscommunication. You mentioned a "union", like a worker union.  From reading the email, I believe what they meant is, that the gas line has"unions" on it, that sometimes need to be replaced, along with the gas valve. So you might have misunderstood. I just rehabbed a house in Merrillville and we had to replace the valve and other parts (union) of the piping. You said it took 6 days for a response. Did you ask for Karen? She owns the company. I would talk directly to her. I will say this though. They are very busy, but that doesn't mean you should be ignored. It takes her a little bit of time to get back with me as well. Sometimes we think we're the only people companies are dealing with, when in fact, they're dealing with a large group of investors. There's another good PM in Merrillville that I use as well. PM me for more information. Best of luck to you.

Jim C. · Answer

@Ray Lai- If the utilities are in your name, you can simply call NIPSCO and get a copy of the bills for Feb. That will show if there was any gas usage during that time. If the NIPSCO was in the Management Co's name, you could request March's copy to see if there was any gas usage.  If you PM me, I can forward some good PM's.

Robert J Carlson · Answer

I know property  boss they do a good job. If your unhappy I will give you Pams info another good one in area

Ray Lai · Answer

For all that are curious, here are the 3 explanations I got:

Explanation 1 said there was a leak (notice the actual invoice #2 does not support this):

"Well we couldn't get the gas turned on because of bad valves and unions that was the $100 charge, nothing to do with the agreement it was a service call and we can;t have gas leaking out into unit."

Explanation 2 from the invoice doesn't mention anything about bad valves and unions:

Explanation 3 after I asked for the actual bill because I misunderstood "union" to mean labor union"Not quite sure what you mean, this is a bill from my company who performs the service calls. I do not get a bill from my staffed employees. As I explained earlier the day the work order was turned in is not always the day of service, We made multiple trips there as NIPSCO failed the first time to turn on gas. We have to be compensated for our time. We are very efficient at keeping costs low for our investors. Typical service calls are $45.00 to go, then depending on the problem, finding the solution and repairing. I'm not out to make money on repairs, my goal is to increase my units being managed and keep the tenants happy."*Case closed. I will get the other referral from Scott. Thank you all.

"Not quite sure what you mean, this is a bill from my company who performs the service calls. I do not get a bill from my staffed employees. As I explained earlier the day the work order was turned in is not always the day of service, We made multiple trips there as NIPSCO failed the first time to turn on gas. We have to be compensated for our time. We are very efficient at keeping costs low for our investors. Typical service calls are $45.00 to go, then depending on the problem, finding the solution and repairing. I'm not out to make money on repairs, my goal is to increase my units being managed and keep the tenants happy."

*Case closed. I will get the other referral from Scott. Thank you all.

Ray Lai · Answer

@Scott Steffek

Thank you for your explanation. Finally it makes sense.

All - Karen finally provided an explanation (today) why it took 6 days to respond, it's because a tenant passed away in someone else's unit so she was busy handling that.

I will PM you the for the information Scott, thanks for taking the time to respond. You're the only one that has given a reasonable explanation.

Multiple investors have said that Karen is honest and very busy, and I trust in their judgment. I will diversify my portfolio for risk reduction.

Ray Lai · Answer

Great idea, thank you Jim!

Ray Lai · Answer

@Shawn Couch

I don't disagree with any of your points. I would never imagine anyone would fly from California to the Midwest to do work on a property, it's illogical.

No one has addressed the issue that my utilities were actually not off, they were on the whole time as I was being charged for them, but now this charge is contradicting the fact that my utilities were on in the cold midwestern winter - if my utilities were off wouldn't my pipes have bursted? Either I didn't pay utilities because they were off (not true), or this charge is bogus, or there is some kind of explanation.

It's sad to know that a good PM takes 6 days to respond. Makes sense that they are busy. You are right though, I'm not a bigger client so I guess I don't really matter to them. Just wish I didn't sign a yearly agreement with them as it's pointless to have a PM if they will bill you for items with no receipts and ignore your emails. I know other people self-managing properties remote with a handyman. I mean, that's what I'm getting if my emails are ignored. Why pay 10% to be ignored and to be provided wrong information (rent put in wrong month in buildium) or no information (no receipts despite repeated requests)?

Shawn Couch · Answer

I own several rentals in NWI.  A good PM is probably a busy PM. Generally, they don't communicate very well, unless you are a bigger client. Many times communication is you, the owner, looking at buildium, etc.  Also, remember that many of the cities are super strict, especially if your property had the utilities off for an extended period of time.  We are talking about bringing items up to current code, when it was just fine for the last owner. Getting a new unit started up generally requires a lot of work, especially when the unit was shuttered up for a period of time, and then rehabbed.  Believe me, it can be very frustrating, but once you are operating, things usually go fairly smooth if you have rehabbed the property sufficiently.  Finally, there will be random repair charges from time to time, but think of how much time and money it would cost you to go out and change an HVAC filter.  You are getting a bargain having a PM at 10% and being at best, a 4 hour flight away.  Good luck, and message me if you want to talk shop.

Ray Lai · Answer

I finally got a response after 6 days:

"Sorry Ray, I forgot to copy Debbie our Operations Manager and ask for a copy of the bill. The utilities were not on at this unit so upon NIPSCO's arrival we were instructed to make repairs before they would turn the gas on. We also had to light hot water tank and clean and check furnace."

I was charged for utilities in February and this charge was for March in Buildium, so something doesn't add up.

Anyone got a good PM recommendation for Northwest Indiana?

Ray Lai · Answer

How bad is it if your PM ignores 4 emails over the course of 6 days about providing a receipt on a $100 gas valve charge and won't explain it?

How to handle a sketchy charge from your PM

Most Popular Reply