How would you feel...if?

Question

You had an agreement (contract) with your Property Manager that they are to get your approval before they go ahead and do any work orders. I just got new tenants in:

week one we dispatched handy man because tenant complained of leak, fixed p trap in bathroom and while there we decided to clear dryer vent $155.00

Week 2 Tenant says hot air out of A/C dispatching A/C man... Fixed problem (they said what it was but can't remember specifics) = 143.00

Week 3 Tenant said shower head is broken, towel rack is loose and there was a leak at the washing machine bib. = $105.00

This was all done without my approval, I let the first two slide because I would have agreed to them fixing them both (not the dryer vent) I don't even supply the washer and dryer so them complaining of a leak on THEIR washer and cleaning the vent to the dryer doesn't make sense to me nor having to fix a shower head? How does that break, without force?!

How would you feel about this or react to it? I need to see if I'm over reacting, since they are technically breaking their contract.

Account Closed · Answer

Welcome to the ripoff world of property management, where all repairs under such and such amount does not need your approval right?  And anything they deem is an emergency also doesn't need your approval, right?  And the next thing you know, all of your emergency funds are gone in a matter of months, and they put in a loser tenant and now they want to charge you extra to get rid of the tenant they put in place for you right?

This is why you should manage your own properties, and why buying out-of-state properties are a disaster waiting to happen.

I know this because it was my personal experience, as well as my daughter's.

If an investment seems too easy or too good to be true, guess what - it is.

I'm sorry this is happening to you.  All I can advise you to do is threaten to sue them if they don't let you out of the contract.  This is what I did.  And then, I suggest you go learn the laws and manage the unit yourself.

Property management of today is car mechanic stories of yesterday.  That industry got changed due to basically a revolt of the people.  It's time the same thing happened for the property management industry.

I had a conversation online a couple days ago with a property manager who works in FL.  I'm in CA.  She said to me that she couldn't figure out how property managers in CA made any money, since in CA you can't charge non-refundable fees.

Translation, she normally charges a fee from the owner, plus maintenance fees, plus she also charges non-refundable fees to the tenant.

Does that sound ethical to you?  But, in her mind it's just business.  I think it's a travesty.  I hope someone someday soon has the cojones to change the laws so this type of contract becomes illegal, where a PMC can get away with this crazy baloney.

Until then, it's on owners to read their contracts, and question every single fee, and not get suckered by promises that this is "standard" etc.

Matthew Paul · Answer

And when their maintenance is in house , they are making big money , they will find things to fix .

Steve Vaughan · Answer

I'd be happy if I were you.  Hands-off passive investing has costs.  I do my own, but those bills don't seem unreasonable at all.  While they were there, they did a couple things like clean a dryer duct and tighten a supply hose to the washer. If it was the actual bib, it was on you anyway.  No way they fixed that for what was charged. Both minor fixes protect your property, tenant responsible or not.  Most PMs have a get permission $ amount.  Here if it's under $300 they don't have to ask, but that is in the contract with the owner.

I would keep an eye on the tenant requests.  Hopefully they aren't a true nitpicker.  A new tenancy often has some things that weren't caught at the rent-ready.  Boundaries may need to be addressed with both the tenant and PM.  So far, I wouldn't get too upset about it.  Have you ever self-managed @Tariq Bahay ?  Carried around every fix-it tool and part in your vehicle for whatever problem, day or night?  Not as easy as one may think.

Tariq B. · Answer

For whatever reason it will not let me tag people. But thank you for all the responses, it's all something to take into consideration. That's what I love about this site is it's a good place to vent when no one else in your life understands the REI world.

Dawn Brenengen · Answer

@Tariq Bahay If your agreement with the PM was they would call you before any repairs, then that is what they should do.  Is that standard practice with the PM company?  In my contacts, I have a $300 limit with my owners.  I'll call them if there is anything over that, and it seems to work well.  I have one or two clients who have asked me to call them first for every repair (after signing the PM contract), and there have been times that I have forgotten to do it since it's out of the way I normally operate.  At this point, I wouldn't agree to that knowing that there is a chance I will forget to call the owner when I don't do it as a standard for the rest of the owners.

Jason Mak · Answer

I would bill back the labor and parts for the washer and dryer since that is the tenant's personal property.  It's a bummer that all the other stuff broke but sometimes when you have a high maintenance tenant, they tend to notice these things.

As far as your property manager, I would also be a bit annoyed that all these things are getting fixed without your approval but it seems like he doesn't really have much choice since they are landlord responsibilities.

My advice would be to sit down and review the bills with your property manager to set the expectation of what you are willing to fix and not explain that his calls weren't emergencies and any maintenance calls require a verbal approval.  Explain that you have to manage monthly cash flow so you need to know what dollar items are being spent.   If he still continues to fill maintenance requests without your approval, then give him a written warning.  If he still continues to doing so, fire him.

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