Need ideas on how to cut expenses

[Lisa S.]

hi all, 

I have 2 small multi family (4 units) and I am getting killed on expenses each month. They are averaging $3500 each month and that's before the bills are paid. Most of the tenants are section 8 and call for repairs to be made literally daily. I'm thinking about asking the property mgmt company to use American Shield or another type of warranty company to get a handle on expenses. Does anyone have any ideas on how to better control expenses under these circumstances?? All ideas welcome 

[JD Martin]

I predict you are literally being robbed by an unscrupulous company. You say you are averaging $450 in repairs per unit, every month. There's not enough stuff to repair in an apartment for that kind of money on a monthly basis that wouldn't be direct vandalism by the tenants. 

Fire the management company and self-manage for one month and see what happens. When was the last time you did an inspection of all the units? Having a PM company doesn't mean you collect your money and wipe your hands of the enterprise - it's just like having a manager of any other kind of business - you have to trust but verify.