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Updated about 1 month ago on . Most recent reply

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Briar Blake
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Property Managers Violated Contract

Briar Blake
Posted

My contract with my property managers requires my approval for any expense over $500. For the second time, an expense for well over $500 has been payed without my consent. It was in response to a potential emergency situation (ex: a water heater in one of my units was leaking and they paid a little over $2,000 for replacement). I was never even informed of this expense, I just keep a close eye on the ledger which is how I saw the expense. For a little background - I have been taking a big loss on this property for the last year for reasons out of the control of my property managers.
What would you do in this situation? I am going to send an email requesting that I be contacted for these expenses, but is it also fair for me to request reimbursement? Would this make you question your property managers?
Thank you in advance! I am pretty new and I'm trying to learn all I can.

Most Popular Reply

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Drew Sygit
#1 Out of State Investing Contributor
  • Property Manager
  • Royal Oak, MI
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Drew Sygit
#1 Out of State Investing Contributor
  • Property Manager
  • Royal Oak, MI
Replied

@Briar Blake pretty sure if you review your management contract that emergencies will be an exception to needing your approval.

If you think about it logically, it MUST be this way!

A PMC cannot risk a ticket or lawsuit because an owner takes too long to approve an emergency.

You do have the right to be frustrated that you weren't informed about the repair as it was being done.

Suggest you discuss with your PMC and see what they say. 

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