Property Management Issue

[Nancy E.]

We have been using the same PM for 8 years and have been happy for the most part. However, the latest turn required extensive maintenance and upgrades. We kept the security deposit but it was about 1/8th of the total bill. Some of the repairs we authorized but some were done without our consent - we were just billed. From our calculations, in 2024  we will lose 1/2 our income on this single-family property in Florida.

Any suggestions on our response to the PM? We would prefer not to fire them. The damage by the outgoing tenant was not that extensive to warrant all the upgrades. Our PM has previously said they must have properties they manage up to a certain ‘standard’.

We do not want to pay legal fees for Small Claims Court.

Any help is appreciated.

Stephen E

[Sean O'Keefe]

@Nancy E. interesting, thanks for sharing. 

• Good news, you may be able to take accelerated bonus depreciation / expenses repairs immediately and get a tax advantage from this
• Bad news, you still need to deal with this issue from tenant/PM.
  • I found this thread from @Bob Beach helpful where he shares some read flags on property managers. 

If you are looking for unbiased feedback on PMs we get a lot from our customers and would be happy to pass it along if we have intel in your area.