Handing over portfolio to PM, how to prevent unnecessary charges

Handing over portfolio to PM, how to prevent unnecessary charges

Rental Property Investor · Jacksonville, FL · Member since 2018 · 50 posts · 10 votes

Hello Everyone,

Curious to know how you would handle this. I've been managing my own portfolio for quite a bit and am very familiar with situations where tenants are having issues with a/c, plumbing, appliances, etc. because I do majority of the work myself. 

And quite frankly most of the time I get a service call from a tenant I find it to be things they were not aware of, things that never actually needed fixing, turning the problem on/off by a switch, etc.. AKA very easy/simple things that require no actual part replacements or major work.

My fear is that when I hand my portfolio over to a PM I will be getting a lot of high price maintenance expenses for service calls which might raise my expenses dramatically.

Should I just expect this? Are there things you include contractually so that you don't end up paying high maintenance fees for ridiculously easy/no work done maintenance? Please share your thoughts and ideas regarding this. 

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  • Kennewick, WA · Member since 2021 · 30 posts · 34 votes
    4y

    From our experience if it was not a property deficiency or operational failure caused by the property or outside source (neighbor or rando)- the tenant is liable for the charges- property management or vendors sent to resolve the issue may troubleshoot the issue to help the tenant avoid these no work done maintenance charges. Again- the tenant would be responsible if they just did not find the switch or the appliance was working properly. 

    Our plumber does give us a description of the blockage or issue and we screen this for tenant responsibility- ie superman was snaked out of the toilet, cat litter was dumped out of the now unusable garbage disposal (also interesting in non pet friendly properties) and we will pass that charge on to the tenant with appropriate explanation. 

    Youre job then is to find a property management company that will align with your expectations on maintenance handling and  charges. 

  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    4y
    Most property managers will include a limit of how much they can spend without Landlord approval. My lease says I can spend up to $250 on any given job without Landlord approval, but I still try to contact the Landlord as time permits. If a doorknob breaks or a tree branch falls on the roof or the fence blows over, I really don't need to ask because I know the Landlord will want to fix those things (and needs to, according to my contract).

    What you really need to do is carefully read the PM agreement to see if they are tacking on additional fees, marking up maintenance, etc. That's where they'll usually kill you.
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  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
    4y

    Ask for pics/video of before and then after the repair. 

    We've taken over for many owners that were charged crazy amounts for repairs that were done sloppy, if at all. Previous PMC provided VERY little communication or documentation.

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