Property Management Scenario - Unauthorized Repair - WWYD?

[Jeremy Horton]

Wanted to run a scenario that just occurred between my investor friend and my property manager.

Problem: Hot water heater developed an internal leak that caused the breaker to keep flipping. No external leaks.  

PM emailed my friend (to his old email) mentioning what the problem was, that they had a plumber come look at it, the plumber recommended replacement and the replacement cost would be $1300 and asked him how he would like to proceed (this was about 2pm in the afternoon). This is interesting since the property statements go to his newer email that he told them to use. This is where the breakdown begins. 

My friend responded to the property manager (by text) the following morning at 6:47am saying he was going to DIY repair due to the high estimate (replacement hot water heater delivered was $500). Property manager responds saying ok, he will get with the plumber and keep my friend updated. The plumber is not currently at the house (approx 7am). 

I drive by the house around 8:15 and the plumber is there. I drive back by at 10:30 and the plumber is gone. I let my friend know - hey you may want to call the PM and see what the deal is. Friend calls the PM - PM tells her he didn't hear anything back by the end of the previous day so he gave the plumber the ok. 

Reasons the PM gave for doing the replacement: 

- It was emergency repair (seems to me, if that was the case, the PM should have texted, called and then flipped the breaker and unplugged the machine). Since when can real emergencies wait until the next day? Really should have been a call/text if it's an emergency (in my opinion).

- How they upgraded from a 40gal to 50gal and it's just a "couple hundred bucks more". This again - since when are replacements upgraded at the property managers discretion? I don't think the overall install price was bad but I don't think it was necessary either. This is a small 1000sqft 2bed/3bath house, 40gal is the standard. No reason for the upgrade. 

- Not following the authorization clause that all repairs over $150 have to be approved by the landlord UNLESS it's an emergency. I am not understanding how this constituted an emergency. An active leak is an emergency. A hot water heater that you can shut the valve off to/flip the breaker/unplug cannot be an emergency. Not having hot water for one night at the most is not a necessity/emergency for the tenant. The reason that clause exists in the contract is literally to prevent that exact situation. 

The spread between the DIY (it's literally 3 connections) and the plumber install is what gets me as well. That's almost $800 peed away for a couple hours work at the most. 
 
It made me a little salty though. I was imagining myself in that scenario. I personally would not accept the current outcome. Best compromise I could come up with was splitting with the property manager - why? The DIY repair would've come in at slightly under $500. Rules weren't followed by the PM. I personally believe the PM lied about what he told the plumber about not doing the work - since the plumber arrived AFTER the "stop work" texting conversation took place. It's far from an "emergency". My friend is a female as well - I hate to think that had anything to do with it, but that PM has never treated me that way either (I am a very large and heavy male lol). I am really considering making a call at this point because I just don't like the principle. I would be prepared to self manage or switch property managers if needed - there are plenty in the area. 

Thoughts? What would you do? 

[Drew Sygit]

Quote from @Jeremy Horton:

Wanted to run a scenario that just occurred between my investor friend and my property manager.

Problem: Hot water heater developed an internal leak that caused the breaker to keep flipping. No external leaks.  

PM emailed my friend (to his old email) mentioning what the problem was, that they had a plumber come look at it, the plumber recommended replacement and the replacement cost would be $1300 and asked him how he would like to proceed (this was about 2pm in the afternoon). This is interesting since the property statements go to his newer email that he told them to use. This is where the breakdown begins. 

My friend responded to the property manager (by text) the following morning at 6:47am saying he was going to DIY repair due to the high estimate (replacement hot water heater delivered was $500). Property manager responds saying ok, he will get with the plumber and keep my friend updated. The plumber is not currently at the house (approx 7am). 

I drive by the house around 8:15 and the plumber is there. I drive back by at 10:30 and the plumber is gone. I let my friend know - hey you may want to call the PM and see what the deal is. Friend calls the PM - PM tells her he didn't hear anything back by the end of the previous day so he gave the plumber the ok. 

Reasons the PM gave for doing the replacement: 

- It was emergency repair (seems to me, if that was the case, the PM should have texted, called and then flipped the breaker and unplugged the machine). Since when can real emergencies wait until the next day? Really should have been a call/text if it's an emergency (in my opinion).

- How they upgraded from a 40gal to 50gal and it's just a "couple hundred bucks more". This again - since when are replacements upgraded at the property managers discretion? I don't think the overall install price was bad but I don't think it was necessary either. This is a small 1000sqft 2bed/3bath house, 40gal is the standard. No reason for the upgrade. 

- Not following the authorization clause that all repairs over $150 have to be approved by the landlord UNLESS it's an emergency. I am not understanding how this constituted an emergency. An active leak is an emergency. A hot water heater that you can shut the valve off to/flip the breaker/unplug cannot be an emergency. Not having hot water for one night at the most is not a necessity/emergency for the tenant. The reason that clause exists in the contract is literally to prevent that exact situation. 

The spread between the DIY (it's literally 3 connections) and the plumber install is what gets me as well. That's almost $800 peed away for a couple hours work at the most. 
 
It made me a little salty though. I was imagining myself in that scenario. I personally would not accept the current outcome. Best compromise I could come up with was splitting with the property manager - why? The DIY repair would've come in at slightly under $500. Rules weren't followed by the PM. I personally believe the PM lied about what he told the plumber about not doing the work - since the plumber arrived AFTER the "stop work" texting conversation took place. It's far from an "emergency". My friend is a female as well - I hate to think that had anything to do with it, but that PM has never treated me that way either (I am a very large and heavy male lol). I am really considering making a call at this point because I just don't like the principle. I would be prepared to self manage or switch property managers if needed - there are plenty in the area. 

Thoughts? What would you do? 

 Not enough info to "Vote"!

What does the management contract state about this?
How does it define an emergency?
Who defines what an emergency is?

What is state/local requirements for lack of water?
- Could water supply to the tank be shutoff w/o affecting water supply for the rest of the house? Most tanks are NOT plumbed for bypass.

What are the local municipality permit requirements for tank replacement?

If required, was a permit pulled and inspection passed?

Appears the cost was $1300, tank $500, so you are assuming labor $800.
- Did it include a permit and what was that cost?

In Metro Detroit, $1300 with permit would be a fair price.

How many other quotes have you obtained from licensed plumbers?