Property manager refusing to provide receipts of repair

[Abhishek Singhal]

My property manager is declining to provide a receipt of the repair that he/she conducted. Instead he/she claims that his/her invoice is sufficient. I am concerned that he/she is either filing bogus small expenditures OR performing services himself/herself and making profit. Do I have the right to see receipts?

Abhishek

[Matthew Paul]

There is nothing wrong with a property management company doing repairs themselves and making a profit . Thats basic business 101

[Theresa Harris]

I agree with Matthew about nothing wrong them them doing it themselves, but the rates should be competitive.  Tell them you want to approve any non-emergency repairs as you might be able to handle them yourself.

[Peter Tverdov]

The amount of pro-nouns you used in your post completely distracted me from the question...WTH. 

[Abhishek Singhal]

Thanks all. My question is that can I demand to see receipts? Are they obligated to provide those or disclose that they did the work themselves?

Abhishek

[Kenny Dahill]

@Abhishek Singhal,

This is a mixed bag.  It comes down mostly to your Management Agreement, although I doubt they would expose themselves from this clause.

• Max Spending: What is their limit to spend without your permission?  Typically ranges from $250-1,000; most require $500. If it's over the limit and wasn't life or unit threatening, then they breached their own contract.
• Markups:  What does the agreement say for markups?  Typical options are: pass-thru, flat rate or percentage.  Confirm their markups align with the agreements
• Contractors:  Do they use an internal or external maintenance team, excluding MEP scope?  If it's internal then good luck getting them to share the invoice because it's not uncommon for extra hours to be billed for profit or when handyman hours are short that week.
• Scope:  What was the scope that they repaired?  And was it life or unit threatening?  Confirm it was indeed a landlord issue and not tenant.  If the scope wasn't necessary, then make a point to inform them they are not to handle those types of tasks in the future.  For example, sliding closet came off the tracks or drywall repairs.  Especially if they have a markup, watch out for the PM's who will send a handyman out to repair anything/anywhere/anytime.  That's a revenue source.
• Self-Perfoming:  It's not uncommon for PM's to have a handyman to self-perform.  You need to know what their minimum trip charge is and hourly rate.  Forbid them to perform overtime work, unless its life or unit threatening.
  

Chances are slim you will get detailed receipts from them.  This is unfortunately the downside with hiring full-service property managers; you lose complete control of your unit and finances.

[Isabelle Tanner]

I’m wondering if you ever got to see the original invoice. My property manager is refusing to give me a copy of an invoice for a brand new air conditioner. I’m curious as to how it turned out for you.

[Colleen F.]

@Isabelle Tanner you need an invoice usually for warranty a repair like AC. Why they refuse?

[Isabelle Tanner]

They said they don’t share the actual invoice from the vendor. They said I can use their invoice for taxes. I was able to speak to the hvac company myself and it looks like they charged me $1500 more than the invoice amount. The fact that they won’t show it to me makes me even more suspicious. I don’t know if they are allowed to even do this. Is it legal?  Maybe someone on here can help me out with that one. You’re right, I need it for warranty as well. I’m going to look for another property manager that can hopefully convince them to turn it over. I’m also thinking of taking them to small claims court. Everyone I tell this to is utterly amazed at how they could do this. 

[Michael Smythe]

@Abhishek Singhal what does the management contract state about what they must provide?

If it's not in the contract, why would you think they must supply it?

[Jake Knight]

They're a company so they need to make a profit and it's good to give your PM some autonomy to do the smaller jobs as to not bother you everytime work needs to be done.  If you want full control over this, you may consider self managing.  The contract really should set the table on what working with that PM will look like. 

[Adam Bartomeo]

Sounds like you have trust issues... We are all here to make a profit so why would you have a problem if they fixed the issue themselves and made a profit. As long as it was fixed at a reasonable price you should be good. I have a staff of Maintenance Techs and we fix lots of items for a profit while at the same time saving the owner money, win/win.

We are transparent company, and we provide all receipts upon request.

[Nathan Gesner]

Quote from @Abhishek Singhal:

It's hard to give the answer without knowing your contract, conversations, and other factors.

I manage 400 rentals. I share copies of the invoices with my owners. I believe transparency is important for trust and accountability.

Your PM is allowed to add a fee to the invoice, but only if it is disclosed in your contract. I would review the PM Agreement closely to see if this is the case. If they failed to state this in the contract, then I recommend you send a written demand for a copy of the original invoice. Let them know that failure to comply will result in filing a complaint with the state commission. Then follow through.

[Isabelle Tanner]

Quote from @Jake Knight:

They're a company so they need to make a profit and it's good to give your PM some autonomy to do the smaller jobs as to not bother you everytime work needs to be done.  If you want full control over this, you may consider self managing.  The contract really should set the table on what working with that PM will look like. 

Thanks for the reply. Of course, I understand about the smaller jobs. Lawn maintenance, toilet repair, etc. this was a brand new AC unit costing $8,000. 

[Isabelle Tanner]

Quote from @Nathan Gesner:

Quote from @Abhishek Singhal:

It's hard to give the answer without knowing your contract, conversations, and other factors.

I manage 400 rentals. I share copies of the invoices with my owners. I believe transparency is important for trust and accountability.

Your PM is allowed to add a fee to the invoice, but only if it is disclosed in your contract. I would review the PM Agreement closely to see if this is the case. If they failed to state this in the contract, then I recommend you send a written demand for a copy of the original invoice. Let them know that failure to comply will result in filing a complaint with the state commission. Then follow through.

Thank you!