Property manager is charging a lot of extras

[Alex Kovalenko]

We just started renting our property manager - most rentals he gets from Airbnb - my only concern is every month he comes with various expenses - pillows, fixing sprlinkers , animal control, additional cleaning, a/c fix, electricity fix , labour to fix a chair ($100 - a chair fix costs more than chair itself) .

like he charged us for ac fix $400 - a month before we put a new ac in weird

so far 3 months into it we have like $3k in various expenses which is insane I finD

Is that normal? Do property managers come up with various costs to get more money that way? 

It’s expensive to keep it running (property tax , insurance , mortgage) so we don’t need all these random extra fees

thanks 

[Vladislav Khlopine]

What is the name of the PM? I can recommend a good one

[V.G Jason]

For every expense, you should ask for proper documentation. You're going down a slippery slope.

[Bill B.]

Depends.  My PM doesn’t make money on repairs to my property. They would prepare to never do any repairs as they ar doing extra work for no extra money. Does your PM own the repair company? There should be before and after pictures and invoices from real repair companies for each repair. If this is the first 1nor 2 months it was a rental there could obviously be problems neither you or them knew about until someone noticed and complained. Which is a reminder. I also get a copy of the tenant’s complaint or report of the problem as they all have to be done online. 

[Richard F.]

Aloha,

What does your Management Agreement state regarding repairs? It sounds like a short term rental, they are definitely more costly to keep up to the standard that your tenants expect. What is the turnover process...who is determining what needs to be done? I agree you should be seeing actual invoice copies for every expense, with your monthly report.

[Eliott Elias]

You are asking the wrong questions, you should be getting receipts for every penny you spend and meeting monthly to discuss every expense. 

[Theresa Harris]

$3K in expenses is a lot and suspect.  I had a tenant who just moved out and he was rough on stuff and I did call and question my PM after repeated repairs.  I'd also ask for receipts as I'm betting he's making money off of repairs. I never did understand why they get a cut when repairs are made as they get a monthly fee and that fee is for more than simply collecting rent and putting it in my bank account.

[James Hamling]

Beyond the obvious of having a conversation with your PM and just asking for details on these things so one can better understand (should always be step #1), on this A/C I can answer. 

This is actually a very GOOD sign from a PM. The easiest and most lazy thing a PM could do is when A/C is an issue, to just say replace it. Replacing an A/C is a serious expense, and a good PM know sometimes, sometimes it can be repaired vs replaced. $400 perfectly fit's with trip charge, diagnoses, minor repair and recharge. Which doesn't always work, namely if the A-coil is shot which can't be diagnosed at start, or condenser is shot, again can't always tell 100%.     Summary, it fit's perfectly for an effort to save a client $ by trying to repair first, and it than failed, proving replacement was required. 

Is it possible that you jumping to conclusions because you were expecting to get $ from the property and not spend $ on it? 

[Corey Lasky]

Quote from @Vladislav Khlopine:

What is the name of the PM? I can recommend a good one

Can you send your recommendation? I’m looking for a PM. 

[Alex Kovalenko]

Yes Vladsilav - can you please send me the PM in Cape Coral area as well. Thanks. 

Quote from @Corey Lasky:

Quote from @Vladislav Khlopine:

What is the name of the PM? I can recommend a good one

Can you send your recommendation? I’m looking for a PM. 

[Chris Davidson]

@Alex Kovalenko what does your agreement say. Also what kind of condition was the property in. The fixing a chair seem a bit odd, but likely is getting someone out there. It is hard to get contractors out of bed for less than $100 unless you have an ongoing relationship. 

You need to verify these issues, but if the property was left in bad shape it is quite possible there will be a turnover period where as things are getting settled in the issues will arise and it should plan out. However there should be good communication on these items and it should make sense. 

Best of luck!

[Mohammed Rahman]

@Alex Kovalenko - a few questions to ask: 

1. Do you think the property needed a lot of the work done to it before hosting it as a STR?

2. Is the property manager mainly dealing with larger clients? If so, a one off client like yourself may get charged higher rates. 

3. Ask for receipts & breakdowns wherever possible. 

Typically a reputable PM won't make up random costs since they know their reputation is on the line, especially if they've served a specific region for long enough. 

[Alex Kovalenko]

Thanks all for your answers - yes I am investigating. I am frustred with lack of communication and random expenses that are in thousands of dollars even though we are only with them for a few months. I did request to authorize any extras by me and not proceed without my OK. What are your thoughts - does your PM do similar things? Like I feel the markups a bit insane. And these are on top of their monthly fees + 20% commission off each booking (like they got all their bookings off Airbnb) 

Example are and all of these are just in a few months! 

$1k in purchasing a few paintings (to make it more appealing) and hanging them , as well as assembling a table outside ;

$600 power wash the house ; 

$100 to throw away garbage ;

$400 investigating A/C and breaker ; 

$300 checking sprikler system; 

$50 freshup fee they charge us ;) - on top of $300 FEES they charge the tenant to clean 

etc... 

[Jim Stutzman]

Quote from @Alex Kovalenko:

Thanks all for your answers - yes I am investigating. I am frustred with lack of communication and random expenses that are in thousands of dollars even though we are only with them for a few months. I did request to authorize any extras by me and not proceed without my OK. What are your thoughts - does your PM do similar things? Like I feel the markups a bit insane. And these are on top of their monthly fees + 20% commission off each booking (like they got all their bookings off Airbnb) 

Example are and all of these are just in a few months! 

$1k in purchasing a few paintings (to make it more appealing) and hanging them , as well as assembling a table outside ;

$600 power wash the house ; 

$100 to throw away garbage ;

$400 investigating A/C and breaker ; 

$300 checking sprikler system; 

$50 freshup fee they charge us ;) - on top of $300 FEES they charge the tenant to clean 

etc... 

 Are you under contract with your PM?  If not, I'd be interviewing other PMs.  

[Alex Kovalenko]

So got an update on this - after inquiring more into it and speaking with PM over the phone - the PM sent me the following email ;) 

"Please take this email as my notice to terminate my property management agreement with you. I am giving you my 90-day notice as required per my management agreement. It appears that there is no trust from your side in our ability to manage your home which is reason enough for me to not continue this working relationship."

I followed up with an email asking how me asking why and how we spent $3k in extra fees is "no trust from my side". This is on top of another invoice they sent us in January for $500 for a washing machine leakage that they said they made a mistake and voided it. 

But in any case I guess it's for the best. Who do you recommend for short term PM in Cape Coral / Fort Myers / area? 

[Jim Stutzman]

Quote from @Alex Kovalenko:

So got an update on this - after inquiring more into it and speaking with PM over the phone - the PM sent me the following email ;) 

"Please take this email as my notice to terminate my property management agreement with you. I am giving you my 90-day notice as required per my management agreement. It appears that there is no trust from your side in our ability to manage your home which is reason enough for me to not continue this working relationship."

I followed up with an email asking how me asking why and how we spent $3k in extra fees is "no trust from my side". This is on top of another invoice they sent us in January for $500 for a washing machine leakage that they said they made a mistake and voided it. 

But in any case I guess it's for the best. Who do you recommend for short term PM in Cape Coral / Fort Myers / area? 

 They know they are screwing you. This was a blessing. 

[Stetson Miller]

@Alex Kovalenko Feel free to post the company to help others that may fall in a similar situation. If you don't feel comfortable with that, please PM me so I can at least warn others

[Drew Sygit]

@Alex Kovalenko sounds suspicious, but could be okay.

Recommend you require before & after pics/video of all repairs.

[Dave Skow]

@Alex Kovalenko- sounds  suspect ....ask for  detailed  explanation and  supporting  receipts ...you might also  ask to be notified  before  any $s are spent in order to  double  check  ...what is he  charging for the PM?

[Ned J.]

Hard to say...sometimes the PM is really doing what needs to be done....sometimes since its not their $$ the go overboard....sometimes they are screwing you since they may make a profit on each repair.....and sometimes its really just a matter of communication or lack of....

Sounds like a lot of $$ without LL pre-approval or providing more details

[Vladislav Khlopine]

Quote from @Alex Kovalenko:

Yes Vladsilav - can you please send me the PM in Cape Coral area as well. Thanks. 

Quote from @Corey Lasky:

Quote from @Vladislav Khlopine:

What is the name of the PM? I can recommend a good one

Can you send your recommendation? I’m looking for a PM. 

Dali 630-915-1752. I have been using him for Long term rentals, but they do STR as well

[Vladislav Khlopine]

Quote from @Corey Lasky:

Quote from @Vladislav Khlopine:

What is the name of the PM? I can recommend a good one

Can you send your recommendation? I’m looking for a PM. 

Dali 630-915-1752. I have been using him for Long term rentals, but they do STR as well

[Corey Lasky]

Quote from @Vladislav Khlopine:

Quote from @Corey Lasky:

Quote from @Vladislav Khlopine:

What is the name of the PM? I can recommend a good one

Can you send your recommendation? I’m looking for a PM. 

Dali 630-915-1752. I have been using him for Long term rentals, but they do STR as well

Thank you!