Contractor liable for charge Property Manager makes to Owner....Yes/No?

8 Replies

Hello and good Sunday to all of you:

I was not sure where to post this so if it's in the wrong section please let me know.

I am going to be having a contractor remodel my rental for the kitchen and bath and do some flooring. Nothing is being "redesigned", cabinets come out and new cabinets and counter (new) go in the same place as will be the bath. Tile comes out and a surround 3-piece goes in along with toilet and vanity and sink and likely new tub. Flooring throughout both rooms in addition to a powder room and the entrance foyer. Not replacing appliances either since they are new.

While this work is going on it will be vacant. Waiting for the tenant to move, if they do then this work will comence.

With that said, I pondered this evening on just getting through the process and thought to myself, "what happens after"? I will be inspecting but as we know things always seem to happen "after" we walk through. Well maybe not always, but there is a chance.

The work will be warrantied so if there is a problem there shouldn't be any issue with getting them back out to address the issue.

I do have a PM that will charge every time they go over to do something so likely, because I am not local, they will have to go over if the new tenant reports an issue in any of these areas that are being "touched". 

Now, if the tenant does report something out of balance with any of these "remodeled" areas to the PM (and I am going to tell them if they do get a call to let me know because this work will be warrantied), and, in the case that the contractor needs to get in while the tenant is not there, the PM will have to go over to let them in to address the issue. 

""Most" times in my experience, the tenant makes arrangements with the contractor to address the issue.

My question: has anyone had this experience and if so, if your PM does charge per visit, should the contractor pay for the PMs visit?

Thinking a lot on this and I keep coming up with "no" because the work is being warrantied so they have to address it without further cost to me. And because the PM charges me, the contractor shouldn't be held for that cost.

But I'd like to hear from others that may have been in this situation and what the outcome was.

Much appreciated....have a great Sunday....

No.

No it is most likely the PM will still charge you for their time at the property. Many PM's work closing with certain contractors and will have the contractor contact and deal with the tenant directly. Meaning the PM won't have to come to the unit, resulting in you saving that little fee.

Just off the top I would say that if your contract with a contractor does not specifically address and include a reimbursement for your time or the cost to you for a  a property manager needed to come open and or remain on the premises then the cost of your Pm is simply your cost of doing business and the contractor is only responsible for his time and labor including replacing material if and when required under their warranty agreement or guarantee. 

Hi Daria

I had something similar.  I too rehabbed a house; completely, from top to bottom.  I also had a property manager who charged me for every single visit. 

I advised the PM that the house was recently rehabbed and there should be no problems with electric, plumbing, roofing or anything else.  However, if something did come up and she got a call from the tenant, she should call me first before going out.  I would then call the contractors myself to go to the house and meet with the tenant.  This was a transitional period and if there was an issue, her handyman would not need to take care of it as it was all under warranty.  After the first year, she could make repairs as needed.

She was resistant at first but i explained that this is what I wanted.  Long story short....i no longer have a property manager and do it myself from 3 hours away.  I have a list of handymen and professionals who i can call to go out to the house if anything is needed and they pay the rent directly to my bank account.

Good luck.

As a contractor , if your PM charges you for a visit , thats your problem not the contractors .  Contractors dont pay you for a visit .  If they stand by their work and there is a problem with materials they provided or work they performed they fix it at no charge ,  but to pay a property manager to unlock the door , No.

My thought is that the contractor and PM are separate issues. I don't think the contractor should be responsible to pay for access to the space. Doesn't seem fair to them. That's your system for gaining access. Set up the times he can work when the tenants are there. Especially if you are making the arrangements to get the contractor there in the first place. Would also explain to the tenants that it's a rehab. The contractor may need to come back.

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Thanks @Wayne Brooks you are always so succinct. :)

@Gilbert Dominguez ,@Matthew Paul ,@Tim Hackett ,@Greg Szymbor that was what I was leaning toward and wanted to find if others encountered this. In all the years of having a PM they have generally done the work and now potentially I will be using another company. Getting bids and all that stuff since this is a $$$ project.

@Missy H. that's a very good idea. While I always tell my PM to contact me, they have authority under $300 to approve fixing things and of course in an emergency they address it right away. Letting them know these are part of a warrantied project, their involvement should only then be to put them in contact with the tenant and let me know ahead of time. That's a great idea. And really? Your former-PM didn't like that, honesty I don't see why unless they wanted to continue nickel and dimeing you. :|

Thanks all for your contribution.