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.