PM Routinely Charging Landlord for Tenant Caused Damage

[Mike Welch]

I'm a CA resident who invests in AZ properties. I invest in Tucson, Arizona, where I lived for ten years, have many contacts, and a local network.

I'm building up my rental portfolio and currently have two properties which I'm planning to hold through retirement. My goal is cash flow and long term appreciation.

I've hired the most established PM in Tucson and have worked with them for two years. I'm interested in the opinions of other investors who have worked with PMs on out of state properties.

Some concerns I have with the current PM:

1) Tenant Damage: The property manager responds to all requests to the tenants, dispatches contractors, then bills me for all repairs completed. Some examples include kitchen sink stopping up due to tenant clog ($100), tenant causes drying machine hose to come off the wall and requires a handyman to re-attach the hose ($75), tenant trips fuse and requires electrician to reset fuse ($125). Should I push back on expenses of this nature? Are they my responsibility or the tenants? Are they a cost of business, or is the PM simply taking the path of least resistance by deducting the expense from my owner's draw?

2) Communication / Response Time: PM never takes my calls, even when in the office. PM recently took over one week and multiple calls, VMs, emails, prior to response.

Should I be seeking other PM's? This PM's out clause requests payment of all of their fees if I terminate for convenience.

Given that I have two properties, I might consider either 1) finding another PM, or 2) self managing. The second option would be challenging as I travel with work, and have an intense corporate gig that takes much of my time and energy.

Please let me know if I should be more patient with this PM, or if I'm being too patient and should be seeking alternatives.

Thank you in advance for your thoughts and comments.

[Matt Devincenzo]

I completely disagree with Prashant P., while maintenance issues are a cost of doing business, tenant caused damages are not.

Now if your lease is not specific enough on who pays what then maybe you have to eat it for now until time for renewal and sign a new lease.

However if a tenant is pouring stale popcorn down the garbage disposal and doesn't think about the fact that unpopped kernels will cause it to bind and stop working, that is not your fault and not a maintenance expense but a damage.

BTW that happened to me that's how I know they will do it. I retrained my tenant by getting it fixed and letting her know that she was responsible for the expense, so next time she will consciously think "I wonder if this should go in the disposal...maybe not" because it is now her expense not yours otherwise why not keep doing it.

You said the washer/dryer hose came off, did you move the washer/dryer around and knock it loose...no the tenant did.

The breaker/fuse tripped so someone overloaded the circuit, did you plug the hairdryer, fan, laptop, tv and sound system into one plug....no the tenant did.

The sink got clogged, did you pour bacon grease/mud/potato peels down the drain...no the tenant did.

I say all of this because the tenant has no reason to try to make sure they don't cause damage because they will just get it fixed free. And no I'm not some mean intolerant LL, as a matter of fact I rent here in CA and LL back in FL where I'm from originally, and I have plugged up 2 sinks in 2 different places I rented, 1 the garbage disposal ended up not working very well and I put too much down it and food got stuck in the drain the other I tried to wash potato skins down at 3 in the morn after being up with a screaming baby for 3 hours and not thinking, you know who fixed both those issues...that's right the tenant did.

And if your PM doesn't respond find a new one, I'm going through the same thing now. They do a good job on the prop but I never hear back so, we're going to talk about communication, if they don't start doing it then I'll find someone who will.