Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 54%
$32.50 /mo
$390 billed annualy
MONTHLY
$69 /mo
billed monthly
7 day free trial. Cancel anytime
Pick markets, find deals, analyze and manage properties. Try BiggerPockets PRO.
x
All Forum Categories
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

All Forum Posts by: Jeremy Lo

Jeremy Lo has started 1 posts and replied 4 times.

Quote from @Jeremy Lo:

Hello everyone,

I have a particular issue with my Property Management Company.

My rental property needed plumbing work done. My property managers told me the repair would not be covered under warranty without even talking to our warranty company. When I called our warranty they approved it stating the plumber would simply have to fill out a work order online for them.

When I told my property managers this, they repeatedly insisted that the repair was not covered under warranty and repeatedly requested to deduct from rental proceeds as payment for the repair.

Our property managers provided me with a plumbing company of their choosing and I begrudgingly agreed as long as I could pay the plumbers directly. Again, my property managers insisted on drawing funds from rental proceeds.

This disagreement went on for weeks.

Our property managers did eventually contact our warranty company, but whatever was said caused our warranty claim to be denied which meant I was stuck with the bill.

Out of pure exhaustion I gave up and allowed our property managers to deduct from rental proceeds who's attitude all of a sudden changed and stopped being argumentative.

Not only that but they sent me a generic POA form, telling me that they could not sign leases without it and that it was a "new rule" in Florida. They already have a managment agreement that describes what they're asking for in the POA and Florida does NOT require property managers to have a POA to sign leases by the way.

I stalled for months and sure enough, they renewed our tenant's lease, without a POA.

So what is/was my property management company trying to do? Why do they insist on deducting from rental proceeds? Why is my warranty company being told information that would otherwise deny a claim? How was this NOT normal wear and tear?

All we needed replaced was a water line in the kitchen.

I don't know why this wasn't covered under warranty.

Now we're at the point of replacing the drywall and my property management is again asking to pull from rental proceeds, and SURPISE SURPRISE the work isn't covered under warranty.......BECAUSE our warranty didn't hire the plumbers in the first place. How convenient.

I believe our property managers are siphoning funds directly from rental proceeds and/or receiving a kickback for the repairs and want to eliminate oversight from a third party warranty company.

Am I crazy?

Am I the only one seeing this?

Am I just going to have to suck it up and pay out of pocket?

This is my first and only property. 


3 Aug 23 update: I've uploaded more photos to help explain. Sorry that they're out of order, I can't figure that one out. But the dates are there. Thank you everyone for your replies.


Quote from @Richard F.:
Aloha,

What kind of "repair" was needed? I see one, cold water line run from point A to point B, which appears to be near the washing machine. What was the issue with the original pipe, or is this actually a new run? If this is actually an extension or relocation, it would not be covered by the HW, but, in theory, if a pipe failed, it should have been covered (assuming awesome fine print on the contract). Was there no access from below that would have been less intrusive to run this line? You don't mention the cost of the plumbing work or the sheetrock, so impossible to make a judgment on that part of the issue. As to paying for the expenses out of Rental proceeds...what is your expectation? No PM is going to pay out of pocket for any repairs...you are on the hook for everything, with the exception of allowable charges passes to Tenants, but YOU still need to ensure Vendors are paid timely, then get reimbursed from Tenant.

Seems like poor communication on all sides. The POA issue is certainly suspect; if it was a new requirement that should be easy to verify. My suspicion is that this PM is not even properly licensed for your State, or is very inexperienced. Check with your State licensing Board.

 Thank you for your reply.

Supposedly there was a "kink" on both ends of the water line preventing the ice machine from working and the line was leaking. Not sure how the "kink" occurred or if could even happen like that but I'm not a plumber. Looking at the work, I would have said it was covered under warranty.

Quote from @Scott Johnson:
Quote from @Jeremy Lo:

Hello everyone,

I have a particular issue with my Property Management Company.

My rental property needed plumbing work done. My property managers told me the repair would not be covered under warranty without even talking to our warranty company. When I called our warranty they approved it stating the plumber would simply have to fill out a work order online for them.

When I told my property managers this, they repeatedly insisted that the repair was not covered under warranty and repeatedly requested to deduct from rental proceeds as payment for the repair.

Our property managers provided me with a plumbing company of their choosing and I begrudgingly agreed as long as I could pay the plumbers directly. Again, my property managers insisted on drawing funds from rental proceeds.

This disagreement went on for weeks.

Our property managers did eventually contact our warranty company, but whatever was said caused our warranty claim to be denied which meant I was stuck with the bill.

Out of pure exhaustion I gave up and allowed our property managers to deduct from rental proceeds who's attitude all of a sudden changed and stopped being argumentative.

Not only that but they sent me a generic POA form, telling me that they could not sign leases without it and that it was a "new rule" in Florida. They already have a managment agreement that describes what they're asking for in the POA and Florida does NOT require property managers to have a POA to sign leases by the way.

I stalled for months and sure enough, they renewed our tenant's lease, without a POA.

So what is/was my property management company trying to do? Why do they insist on deducting from rental proceeds? Why is my warranty company being told information that would otherwise deny a claim? How was this NOT normal wear and tear?

All we needed replaced was a water line in the kitchen.

I don't know why this wasn't covered under warranty.

Now we're at the point of replacing the drywall and my property management is again asking to pull from rental proceeds, and SURPISE SURPRISE the work isn't covered under warranty.......BECAUSE our warranty didn't hire the plumbers in the first place. How convenient.

I believe our property managers are siphoning funds directly from rental proceeds and/or receiving a kickback for the repairs and want to eliminate oversight from a third party warranty company.

Am I crazy?

Am I the only one seeing this?

Am I just going to have to suck it up and pay out of pocket?

This is my first and only property.


 They sounds super sus-burger helper. Even if they're being open and honest, if you're getting a woo-jah feeling, I'd start calling around to other property managers. 

Are they the lowest cost one around? What made you choose them in the first place?


 Thank you for your response.

We're a military family and had orders to move to another military installation in another state. We were notified 2 months after purchasing the home so things had to move quickly and we went with the first PM we found. Rookie move I know, but they were good up until the economic crash this year.

Hello everyone,

I have a particular issue with my Property Management Company.

My rental property needed plumbing work done. My property managers told me the repair would not be covered under warranty without even talking to our warranty company. When I called our warranty they approved it stating the plumber would simply have to fill out a work order online for them.

When I told my property managers this, they repeatedly insisted that the repair was not covered under warranty and repeatedly requested to deduct from rental proceeds as payment for the repair.

Our property managers provided me with a plumbing company of their choosing and I begrudgingly agreed as long as I could pay the plumbers directly. Again, my property managers insisted on drawing funds from rental proceeds.

This disagreement went on for weeks.

Our property managers did eventually contact our warranty company, but whatever was said caused our warranty claim to be denied which meant I was stuck with the bill.

Out of pure exhaustion I gave up and allowed our property managers to deduct from rental proceeds who's attitude all of a sudden changed and stopped being argumentative.

Not only that but they sent me a generic POA form, telling me that they could not sign leases without it and that it was a "new rule" in Florida. They already have a managment agreement that describes what they're asking for in the POA and Florida does NOT require property managers to have a POA to sign leases by the way.

I stalled for months and sure enough, they renewed our tenant's lease, without a POA.

So what is/was my property management company trying to do? Why do they insist on deducting from rental proceeds? Why is my warranty company being told information that would otherwise deny a claim? How was this NOT normal wear and tear?

All we needed replaced was a water line in the kitchen.

I don't know why this wasn't covered under warranty.

Now we're at the point of replacing the drywall and my property management is again asking to pull from rental proceeds, and SURPISE SURPRISE the work isn't covered under warranty.......BECAUSE our warranty didn't hire the plumbers in the first place. How convenient.

I believe our property managers are siphoning funds directly from rental proceeds and/or receiving a kickback for the repairs and want to eliminate oversight from a third party warranty company.

Am I crazy?

Am I the only one seeing this?

Am I just going to have to suck it up and pay out of pocket?

This is my first and only property.