All Forum Posts by: Denise Harmening

Wow. I am on the same path you are on.  Renovation now due to my frozen pipes from  Christmas Eve.  My insurance company told me that once we are finished with all repairs they want me to submit what last years income was for that same time frame to provide them a basis of how much lost income they will cover for me.  So not sure yet how that will turn out but that sounds much different than what you are hearing from your ins company. 

@Denise Harmening two issues that you didn't realize could cost you so much:

1) Short contract

2) Small PMC

So, you may want to do more diligence on your next PMC!

Even if someone give you a referral, what meets their expectations, may not meet yours.

In our experience, the #1 mistake owners make when selecting a Property Management Company (PMC) is ASSUMING instead of CONFIRMING.

It's often a case of not doing enough research, as they don't know what they don't know!

Owners mistakenly ASSUME all PMCs offer the exact SAME SERVICES and PERFORM those services EXACTLY THE SAME WAY, so price is the only differentiator – and they often select the first PMC they call!

So, the first question they usually ask a PMC is about fees - instead of asking about services and HOW those services are executed.

EXAMPLE: PMC states they will handle tenant screening – what does that specifically mean? What documents do they require, what credit scores do they allow, how do they verify previous rental history, etc.? You’d be shocked by how little actual screening many PMC’s do!

This also leads owners to ASSUME simpler is better when it comes to management contracts.

The reality is the opposite - if it's not in writing then the PMC doesn't have to provide the service or can charge extra for it!

We have a 14-page management contract that we've added our real experiences to over the years, with the intent of protecting both us AND the landlord. Beyond the Monthly Management, Placement & Maintenance fees, all other fees in our contract are IF EVENT -> THEN fees.

We don’t know any PMCs to recommend in the area mentioned, but since selecting the wrong PMC is usually more harmful than selecting a bad tenant, you might want to read our series about “How to Screen a PMC Better than a Tenant”:

https://www.biggerpockets.com/member-blogs/3094/91877-how-to-screen-a-pmc-better-than-a-tenant-part-1-services-and-processes

We recommend you get management contracts from several PMCs and compare the services they cover and, more importantly, what they each DO NOT cover.

EDUCATE YOURSELF - yes, it will take time, but will lead to a selection that better meets your expectations & avoids potentially costly surprises!

P.S. If you just hire the cheapest or first PMC you speak with and it turns into a bad experience, please don’t assume ALL PMC’s are bad and start trashing PMC’s in general. Take ownership of your mistake and learn to do the proper due diligence recommended above😊

Please send us any feedback via email, as we do not use the DM feature here.

Lots of variables in this. That said, review your contract and talk to your attorney. The PM maybe liable for this.

That said, when did the pipes actually freeze? When did the heat actually stop? All factors that can affect how this plays out. 

Im late to the party on this post but get some dehumidifiers in there. Clean it up, get the heat up, see what you can salvage. Begin treating any potential mold spots.

Call your PM and just ask them whats going on? How did this happen? How often do they frequent the property? Why were you not notified immediately, especially since the solution wasn't immediately administered.

My pipes bust at one of my cabins on the 24th as well.  I am not saying they are not to blame, but just laying out the reality of the situation on the night of the 24th and the following days.  This is from my perspective of what I experienced as well as being a part of several facebook groups for cabin owners in the area.  3 level cabins with two HVAC units were able to keep the heat around 70, however, 3 level cabins with a single HVAC unit (many older cabins) were only able to keep the heat in the 50s.  We had an unusual arctic blast that came through.  The temps at my cabin hit like -6 that night.  The temps around those days stayed below freezing several days.. way below freezing.  That area typically might see the teens for a day and then bounce back.  Not this case .. this was a 10 year type of storm that hit.  In addition, the power company was doing 15 minute rolling black outs.    Whenever this happens, there is always something that gets affected.  

With the 4 properties we manage in that area, I had a pipe bust in my mountain cabin, had a control board get hosed on a mini-split in a pool room due to the power outages, and PCB get fried in a multitude due to power outages.  We spent those couple days managing guests and problems, I can't tell you how many phone calls, etc.. dealing with the many situations, clueless guests, guests that show up have no idea what to do when its that cold etc..

Having said that, I was unable to get a plumber out until Thursday.  That was the soonest.  They were backed up due to so many pipes busting on the 24th.  It was just flat out that cold for a long spell.  When I finally got ServPro out on Friday, again the soonest they could show up, he told me he had 65 residential customers on his list that he still had to get to and the number was increasing not to mention, how many larger commercial customers he had on a back list to get to.

What I am saying is that there could be some truth to the mgmt company saying they didnt have time to call you.  I am just saying those days were flat out that busy for everyone.  Roads were impacted, there were accidents on back roads and quite honestly 4x4 or not, when the road is ice it just means both axles are gonna be slipping.  Employees could not make it to work, and they were taking phone calls from guests and owners all at the same time, and it was non stop.

I am not making excuses but just stating the reality of those days how I saw it.

 File a claim with your insurance company immediately. They will seek damages against the management company if they feel it's appropriate.

No muss, no fuss beyond your current headache.

I don't believe for a second that they didn't have time to contact the owners experiencing loss of heat. How many do they manage? How many owners lost heat and water that day? Five minutes per owner, 12 owners per hour. That's 24 owners contacted in two hours. Surely they could work a couple extra hours?

They could have instructed the Tenant on how to shut off the water valve. The Tenants were able to leave the next day, so clearly the roads were passable and someone could have visited the property. I know it's Christmas, but that's part of the reason we hire Property Managers. They are glorified booking agents and rent collectors, not true property managers that take responsibility for your investment.

I think you have a good case against them and I would push it hard.