Management company and use of funds
Hello all,
Recently I was notified by our manager that a certain component in an appliance in one of my rentals needs repair. After reviewing the monthly statement I realized that the expense was well above the dollar limit that requires a prior approval by me.
When asking the manager for explanation as to why was the expense so high and why it was approved without my consent, she replied that the they had purchased a whole new appliance, rather then repairing it (without much info as to why it couldn't be fixed) and that I was notified of the need to repair/replace. However, I was never notified that the expense was above my set limit $ amount requiring my approval.
Is that a common practice by managers? If I was aware of the $ amount they were about to spend I could have furnished the need in a fraction of the cost myself. Is me knowing that an item needs repair/replace wave the need for approval by me when it exceeds the set $ amount?
I understand that part of hiring a manager is to reduce my day to day involvement with the rental, but $ limit on expenses is there for reasons exactly like this one.
I haven't discussed the issue further with my manager as I want to get some insight from more experienced investors on the forum.
Thanks!