Q: About how PMs handle tenant dmgs and owner repairs

Q: About how PMs handle tenant dmgs and owner repairs

Member since 2020 · 17 posts · 4 votes

So I've been using this property management firm for a few years now and we had our first real "tenant damage" between tenants (I guess this timeframe is considered turning, not flipping, but if you have a better term for the time when repairs are being done between tenants let me know.) 

We had minor stuff before - patches that needed painting, handles that needed tightening, things just not really being clean enough - you know the typical "stuff" you expect.  This was more.  Screens were ripped, there were softball size holes in walls, stuff like that.  Still I wouldn't consider it bad, but you know more than normal?

Anyway, I'm an extremely handy guy.  I'll not claim to be a carpenter or plumber, but I was a licensed electrician in the IBEW, so I am used to getting my hands dirty.  Replacing screens, patching walls, and other repairs are not outside my bailiwick by any means.  Yet for some reason, suddenly my Property Management company is all defensive because I refused to let them do the repairs, I did them myself.  Told them to just bill what they would have paid their guys to do the work and get out of my way (they needed 10 days to start work, I was done in 3 days.)  I figured if they found fault in the repair, they could just redo it and bill for them instead of paying me for it.

Is there some logical reason, as the owner, I shouldn't be allowed to do repairs for tenant related damages?  I never got push back on doing things like changing locks, reprogramming garage door openers, or the other typical stuff - it's just now with the tenant damages the property management company is having issues.  (I did it anyway, it's my house dang it.  I'm not paying $65/hour for someone to patch and paint a wall, not when I have teenagers I can teach how to patch and paint a wall and make it look good when they're done.) 

I want to note, I sent them copies of the receipts as well, and while I am sure they have volume discounts, I am pretty sure they use the same hardware stores that offer me a veteran discount so the price can't be off by more than a couple percent - which would be owed back from the tenant in either regard, wouldn't it?

Just curious.  More concerned they were pushing back for some sort of legal reason - not necessarily a law, but maybe to make court easier if they had to go to court?  

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Drew SygitBusiness Member
Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
5y

@Sean Honeycutt, While there are industry "norms", each PMC can do whatever it wants within the confines of the law.

It does often get messy when owners get involved in repairs. So, many PMC's just don't allow it - ever.

That doesn't make sense to us - as the owner is our client and it is their property. 

The challenge is trying to balance timing, legal liabilities, circumventing management, upsurping PMC authority with tenants, etc.

Read you PMC contract thoroughly and see what it states about you making your own repairs. If you signed away that right, you may want to renegotiate.

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  • Cincinnati, OH · Member since 2020 · 4k+ posts · 3k+ votes
    5y

    @Sean Honeycutt, I have never had good experiences with PMs overall.  Of course, you need to look at your agreement with them regarding whether they have any recourse against you for performing your own work. From my limited experience, PMs seem to make most of their money on these repairs.  They hire someone for $20/hr, bill you $65/hr plus a construction management fee on top of everything.  

    I will reiterate: I tried 3 PMs many years ago and the quality of work, quality of tenant, and money I was making were all much lower with outside management versus self managing. And I spent a lot more time managing my manager than managing my properties. So take my feedback with a grain of salt, as I know others who have loved their PMs.

  • Tracy StreichPro Member
    Real Estate Broker · Tulsa- OKC Oklahoma · Member since 2017 · 868 posts · 801 votes
    5y

    @Sean Honeycutt  We let our owners do their own repairs on VACANT units only.   Sounds like you were doing it on a turn   My thought is your money and your time do what you want.   Let me know when it is ready to list again for rent.   We then inspect it fix any leftovers and list

  • Member since 2020 · 17 posts · 4 votes
    5y

    @Evan Polaski,

    I wouldn't use a Property Manager at all, but I have a full time and part time job so I don't have time to screen tenants or deal with bad tenants.  That's all I really need them for, though if there are major repairs I don't mind having them hire a professional for it (ie if the the motor in the furnace needs to be removed and blown out because the tenant failed to replace air filters; replacing doors is kind of a pain so I'll pass that off even though I can do it, stuff like that.) 

    I was just wondering if this was kind of industry standard - they wanted to do all repairs as some sort of way to generate extra revenue?  Just curious because I'm of the fan of doing as much as I can to save money and to know its done correctly.  

    (((break)))

    @Tracy Streich,

    See, that's how I expected it.  If there was a tenant, then the PM could arrange to get repairs done as needed.  Since we are between tenants, I figured I'd take their move out inspection and have an enjoyable weekend patching and fixing up the place myself - besides, I filled all the nail holes and little dings, then painted it with matching paint and made sure it all blended it, I doubt the PM's painter would be nearly that perfectionist.  

    They didn't say I couldn't, but they had this awkward silence and I was beginning to wonder if I was doing something antithetical to the industry standard?  Like if they had to do repairs for tenant damages to legally withhold the funds from the security deposit?  I didn't want to make things harder - but I also don't want to waste money when I am perfectly capable of doing it.


  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
    5y

    @Sean Honeycutt, While there are industry "norms", each PMC can do whatever it wants within the confines of the law.

    It does often get messy when owners get involved in repairs. So, many PMC's just don't allow it - ever.

    That doesn't make sense to us - as the owner is our client and it is their property. 

    The challenge is trying to balance timing, legal liabilities, circumventing management, upsurping PMC authority with tenants, etc.

    Read you PMC contract thoroughly and see what it states about you making your own repairs. If you signed away that right, you may want to renegotiate.

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