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All Forum Posts by: Jordan Laney

Jordan Laney has started 5 posts and replied 21 times.

Post: PM signed awful snow contract

Jordan Laney
Posted
  • Investor
  • Chicago, IL
  • Posts 21
  • Votes 15

So, what do you all pay for the entire season? Last we paid $300, FOR THE ENTIRE SEASON!

With another snowfall in the forecast, we are already at $1500.

Post: PM signed awful snow contract

Jordan Laney
Posted
  • Investor
  • Chicago, IL
  • Posts 21
  • Votes 15

Hey all, I want to ask if you would sign this contract.

PM has a snow vendor who comes out to shovel if it snows more than 2". They charge us $250 per "push". Since we have 2 buildings (right next to each) the total is $500. So far this winter they've been "deployed" 3 times. Is this a fair price for snow removal? They don't cover parking spaces. Also, if you're familiar with Chicago, it's your standard 6-unit building, so imagine the sidewalk surrounding it. 

As if you needed more reason, the PM doesn't even verify they do the work. They just pay the invoices. We have had tenants shoveling snow the snow all along. 

What are some of your thoughts? 

Post: New member from the Chicago area!

Jordan Laney
Posted
  • Investor
  • Chicago, IL
  • Posts 21
  • Votes 15

Welcome Vivien!

Great place to kick off your REI journey. Make sure you tune into the podcasts and read some of BP's books!

Post: PM changed the utilities too early and now we're stuck holding the bag

Jordan Laney
Posted
  • Investor
  • Chicago, IL
  • Posts 21
  • Votes 15
Quote from @James Wise:
Quote from @Jordan Laney:
Quote from @James Wise:
Quote from @Jordan Laney:
Quote from @Michael Smythe:

@Jordan Laney did you check with the utility provider if this was an automatic transfer of service instead of shutoff?

Our electric & gas utilities provide this service in Metro Detroit - to avoid utilities being turned off for tenant nonpayment during winter. 

In your example, $250 in utility bills is much cheaper than $2500 to fix frozen-pipe damages!

We have every one of our managed properties enrolled in these services to avoid utility shutoff damages. Besides frozen pipes in the winter, there's also sump pumps that if not running, could flood a basement and cause major mold damage.


 Hey Michael, 

It's a 6 unit building and the winter has been mild so far here in Chicago *knocks on wood*. So, I don't think frozen pipes were a concern. What I've gathered so far, is that it is more than likely a step in their process to change the electric utility back into PM's name (they took care of all bills on our behalf) by the move-out date. The problem was that the tenant did not move out. I don't think they verified that the tenant was planning on leaving either. All in all, it is what it is. In this game, there's always something!


 A property management company cannot operate using the logic that it hasn't been that cold yet. In Chicago it regularly dips below 32. I'm in Cleveland, it's like 20 right now but it was 60 3 days ago. I am not convinced that the property manager did anything wrong in this situation.


 So, what would you call it? Just dumb luck? Unforceeble circumstance? Should I just chalk it up as a loss and move on?

What if the pipes did freeze? Are we as owners always at fault for the actions of the PM? 

Would you demand they pay for the fix? 

 It's called the cost of doing business. The tenant isn't paying rent so it's reasonable to assume they aren't going to pay the electric bill. You need to pay the small bill to mitigate your risk of thousands of dollars of damage due to pipes freezing if the electric was off. They probably have it setup to automatically transfer instead of shutoff to protect you when the tenant doesn't pay the bill.


 James, 

I believe you are assuming it was going to be shut off and that was the risk. If the PM did nothing, the electric bill would still fall on the tenant and thus be responsible. Although the tenant refused to pay rent, they were paying the utility. Otherwise, it would've been shut off in August when the lease expired. I don't know if you saw this part, but the PM hasn't exactly given me a reason yet for the utility cost. I've uncovered some info only after speaking with other tenants. 

I believe that the PM acted too early, without ensuring the tenant left - leaving me on the hook. My only goal was to share a story and prompt a discussion. Thank you for your time and insight!

Post: PM changed the utilities too early and now we're stuck holding the bag

Jordan Laney
Posted
  • Investor
  • Chicago, IL
  • Posts 21
  • Votes 15
Quote from @James Wise:
Quote from @Jordan Laney:
Quote from @Michael Smythe:

@Jordan Laney did you check with the utility provider if this was an automatic transfer of service instead of shutoff?

Our electric & gas utilities provide this service in Metro Detroit - to avoid utilities being turned off for tenant nonpayment during winter. 

In your example, $250 in utility bills is much cheaper than $2500 to fix frozen-pipe damages!

We have every one of our managed properties enrolled in these services to avoid utility shutoff damages. Besides frozen pipes in the winter, there's also sump pumps that if not running, could flood a basement and cause major mold damage.


 Hey Michael, 

It's a 6 unit building and the winter has been mild so far here in Chicago *knocks on wood*. So, I don't think frozen pipes were a concern. What I've gathered so far, is that it is more than likely a step in their process to change the electric utility back into PM's name (they took care of all bills on our behalf) by the move-out date. The problem was that the tenant did not move out. I don't think they verified that the tenant was planning on leaving either. All in all, it is what it is. In this game, there's always something!


 A property management company cannot operate using the logic that it hasn't been that cold yet. In Chicago it regularly dips below 32. I'm in Cleveland, it's like 20 right now but it was 60 3 days ago. I am not convinced that the property manager did anything wrong in this situation.


 So, what would you call it? Just dumb luck? Unforceeble circumstance? Should I just chalk it up as a loss and move on?

What if the pipes did freeze? Are we as owners always at fault for the actions of the PM? 

Would you demand they pay for the fix? 

Post: PM changed the utilities too early and now we're stuck holding the bag

Jordan Laney
Posted
  • Investor
  • Chicago, IL
  • Posts 21
  • Votes 15
Quote from @Michael Smythe:

@Jordan Laney did you check with the utility provider if this was an automatic transfer of service instead of shutoff?

Our electric & gas utilities provide this service in Metro Detroit - to avoid utilities being turned off for tenant nonpayment during winter. 

In your example, $250 in utility bills is much cheaper than $2500 to fix frozen-pipe damages!

We have every one of our managed properties enrolled in these services to avoid utility shutoff damages. Besides frozen pipes in the winter, there's also sump pumps that if not running, could flood a basement and cause major mold damage.


 Hey Michael, 

It's a 6 unit building and the winter has been mild so far here in Chicago *knocks on wood*. So, I don't think frozen pipes were a concern. What I've gathered so far, is that it is more than likely a step in their process to change the electric utility back into PM's name (they took care of all bills on our behalf) by the move-out date. The problem was that the tenant did not move out. I don't think they verified that the tenant was planning on leaving either. All in all, it is what it is. In this game, there's always something!

Post: PM changed the utilities too early and now we're stuck holding the bag

Jordan Laney
Posted
  • Investor
  • Chicago, IL
  • Posts 21
  • Votes 15

@Patricia Steiner @Travis Timmons , I 100% agree. This is just one instance, though. I have a few other stories on why the PM wasn't a fit for us. One of my 2025 goals was to be more active on the website. That was the biggest motivation to post it, and this was the most recent story I could recall. The interaction and insights people shared were worth more than $250. 

Post: PM changed the utilities too early and now we're stuck holding the bag

Jordan Laney
Posted
  • Investor
  • Chicago, IL
  • Posts 21
  • Votes 15
Quote from @James Wise:
Quote from @Jordan Laney:

Hello, Happy New Year 

Who do you think is at fault? 

Story time. So we had a non-paying tenant whose lease wasn't renewed and refused to leave. We started the eviction process. The PM change the electric utility to the PM's name. Of course the tenant eviction process took awhile and out of spite the tenant intentionally left the lights on. So we were charged about $250 more than usual. Ultimately, I know we have to pay. The PM told us that they would bill back the tenant. We all know they won't ever pay. They owe over $6,000. Do you think that is fair - to be forced to pay for your manager's mistake? Would you work with a PM who did this?


 Why was the bill so high? Is it electric heat? 


 James, 

I am unsure why. I suspect it was two or more months on 1 bill in addition to what we pay for common areas. It all just got paid at 1 time. I normally get a monthly statement and a copy of all bills. I haven't received that yet.

Post: PM changed the utilities too early and now we're stuck holding the bag

Jordan Laney
Posted
  • Investor
  • Chicago, IL
  • Posts 21
  • Votes 15
Quote from @Kristian Sexton:

Speaking from a PM perspective if you were going through an eviction process they probably assumed that the tenant would just leave the property. 

In Alabama the utilities being turned off is a sign of abandonment so we would not have put it in our name. We typically make calls every couple of days to see if the utilities have been cut off. This method is a little riskier and requires more work from the Property Manager. 

I would assume your Property Manager was trying to protect the property from any damage or lapse in utility services so I not think they were at fault here. 

Hey Kristian, 

Very good insights! The only thing that was changed was the electric, for whatever reason. What I view view as a blunder, other may not. So thank you for your input!



    Post: PM changed the utilities too early and now we're stuck holding the bag

    Jordan Laney
    Posted
    • Investor
    • Chicago, IL
    • Posts 21
    • Votes 15
    Quote from @JD Martin:

    No way lights are running up a bill by $250 in an apartment. Maybe the heat was left high, which is more likely. Still, not changing over the utilities in the winter is stupid but the PM should have checked the unit to make sure everything was set properly - heat down but not off, lights off, etc. 


     JD, 

    The tenant was responsible for electric and cooking gas. The only one that was changed was the electric. I got a report that said electric for November was $295. This prompted more investigation as to why. Everything I talked about in the OP was what I discovered.