Investor · San Clemente, CA · Member since 2015 · 3 posts · 0 votes
I was notified by my property manager that after my tenants moved out (February in Indianapolis), the utility company failed to put the utilities in my property manager's name and instead shut them off. I don't know how long it was before someone noticed the ice around the front door but it was awhile. Multiple pipes burst, upstairs and down, and I'm told that the whole house has been affected/damaged. Manager tells me that utility company is taking full responsibility and will cover the extensive repair and loss of rent. I live six states away. Manager is telling me that they are getting bids for work and that it will all be taken care of in 4-6 weeks. I've asked for pictures and a copy of the bid. What else should I be doing/asking for to make sure that this has a happy ending?
Property Manager · Indianapolis, IN · Member since 2014 · 80 posts · 29 votes
11y
I have never heard of the utility company taking responsibility for frozen water pipes. Have you spoken to the utility company yourself to make sure?? Call the utility company and make sure someone place an order to have the utilities transferred when the tenant moved out of the property.
Turn key provider · San Jose, CA · Member since 2010 · 4k+ posts · 3k+ votes
11y
I would contact Citizens Gas & Water there in Indy and make sure you are getting accurate info from your PM. Confirm that they are really taking responsibility. Like @Ashley Mullin I've never heard of that, but if they truly did turn it off in error, than maybe they are. Good luck with it.
San Jose, CA · Member since 2015 · 4k+ posts · 3k+ votes
11y
This sounds like a neglectful PM. I think you should get your own bids to make sure she doesn't get kickbacks for the damage she caused by being negligent. And I think you should be asking her some hard questions.
Investor · Carmel, IN · Member since 2014 · 332 posts · 245 votes
11y
I would call the utility company directly and ask them to confirm - and double confirm - that they will be absorbing the cost of the repairs. I hope that it is correct, but something sounds off.
I would call the utility company directly and ask them to confirm - and double confirm - that they will be absorbing the cost of the repairs. I hope that it is correct, but something sounds off.
Real Estate Broker & Investor · Indianapolis, IN · Member since 2012 · 218 posts · 83 votes
11y
Somebody was negligent here..sounds like your property manager.
Homes that are vacant should never have the water left on...I shut my own off when leaving for more than a day, always, particularly in winter. Even if the utilities were transferred, they can always go out.
You may well end up needing to file an insurance claim. Hopefully it works out, keep us posted.
Investor · San Clemente, CA · Member since 2015 · 3 posts · 0 votes
11y
thank you for your responses. I will contact utility co and confirm what I've been told by PM. Should I involve my insurance company for second opinion or am I inviting trouble?
Insurance Agent · Cleveland, OH · Member since 2013 · 206 posts · 98 votes
11y
If the story holds true and everything is working out, I would not call your Insurance Company. If you call your insurance company and report damage it goes in the books as an unpaid claim. Even if you do not file a claim. You may be able to find some here on BP that is close to your rental to keep an eye on it for you while this is going on. Good luck
Real Estate Attorney, Broker, Investor · Indianapolis, IN · Member since 2013 · 207 posts · 58 votes
11y
Sara,
As suggested, I most definitely would contact Citizens Energy Group. I too have never heard of Citizens taking responsibility for such damage. From a legal standpoint, below are suggestions:
1. Reread your signed Property Management Agreement as to your PM's fiduciary duties to you as the client. It sounds like you may have a breach of contract and negligence action.
2. Demand the contact information at Citizens to speak with them directly as to what happened, etc. Confirm the information you are being told by the PM is accurate.
3. Gather all specific details as to matter. Specifically, as to when utilities were shut off. Who called in to the work order? It probably was the PM. Request a copy of the work order. Get specific name of Citizens representative who went to the property and shut off the water. Was it actually a Citizens employee or one of their contractors? This makes a difference.
4. When did the PM become aware of it? Had they shown the property? Request a copy of their specific records.
You need to start building a legal case here, even if no legal action is required. Just some helpful tips. I have represented clients on matters similar to this when it comes to potential PM negligent actions.
In the future, you may want to fax a letter to Citizens requesting that when any tenants move out that all utilities revert back to you, the Landord, automatically. I have this on all of my rental properties and this has proven to be most helpful! Especially when tenants skip out on you before you can get ahead of them.
I shut my own off when leaving for more than a day, always, particularly in winter. Even if the utilities were transferred, they can always go out.
you should drain the pipes at the lowest level (basement) AND then shut the water down.you dont want to hold pressure in the pipes ..that's what kills them. also insulate the pipes before the shut off valve (assuming it is somewhere in the house) as they might burst as well. that's assuming there is no heat to the house. if there is heat provided ....do the same ..just in case. I am ALWAYS the last one to close the doors for the night during my winter time flipping