Had an owner scream at me because I sent a plumber to check out a leak from bathtub, saying there is no leak blah blah blah. I hold a $300 pad, but plumbing leaks are emergencies and should be looked at ASAP. I’d like an addendum covering these specific instances as the pad is often not sufficient for plumbing emergencies. Anyone have one?
Had an owner scream at me because I sent a plumber to check out a leak from bathtub, saying there is no leak blah blah blah. I hold a $300 pad, but plumbing leaks are emergencies and should be looked at ASAP. I’d like an addendum covering these specific instances as the pad is often not sufficient for plumbing emergencies. Anyone have one?
Here's my PM Agreement:
Repairs – Manager will coordinate and supervise repairs on the Property and pay all bills accordingly. Manager agrees to secure the prior approval of the Owner for repairs estimated to exceed $300 for any one repair that is not an emergency. Manager will attempt to contact Owner by telephone, text, or email to procure Owner approval. Owner will have forty-eight (48) hours to respond to Manager with approval or denial. If Owner does not reply within the allotted time, Owner authorizes Manager to proceed with the repair to protect and preserve the Property, remain in compliance with applicable laws, and abide by the obligations set forth in the lease.
You need to fire this Owner and any other owner that is stingy with their money. I also recommend training Owners from the very beginning that you only work with owners that maintain their property. Penny pinchers can go somewhere else and pay a discount Broker 6% to collect rent and do nothing else. You'll be so much happier!
Markets certainly vary, but $300 is not even enough to change a water heater, which is a pretty basic element to many rentals. First, we request Owners to provide a "reserve" of typically $1000, depending on our assessment of the condition of the property at takeover. Our vendors can make or break us, so they get paid promptly, and certainly NOT from our company funds or other Owner's funds. If we are performing a major renovation, the Owner is required to sign the vendor's contract, and provide full payment to us prior to the start of work. We then disburse based on the contract terms, and reserve an inspection prior to final payment by the Owner if desired.
Your local LL/Tenant laws likely dictate the time frame you have to respond to maintenance requests, so you cannot spend a lot of time waiting for approval, then waiting for funds to pay vendors as well. Our contract states we will "manage" the unit/property...we are not employees of the Property Owner. As Managers, we have the discretion to make all decisions for routine daily operations.
Our only limitation is the line item limiting a single expenditure to an amount specified, which we recommend to be $1000 - $1500, (with the cost to replace a water heater as baseline recommendation) again depending on our initial assessment of the property condition. We still have authority to spend over that limit for actual emergencies to protect life or property, with notification to owner at earliest opportunity. Generally the intent of that would be for actual fire or major flooding, roof or floor collapse, or similar dramatic incident.
Turnovers are a separate issue, and we always coordinate closely with the Owner depending on the level of work needed. We start by notifying the Owner as soon as we get notice from tenant they will be vacating, typically 30 days out. This prepares the Owner for possible funding shortage due to the vacancy, and prepare if we have previously strategized about upgrades or renovation for the unit. Once the final move out inspection is complete, I send lots of photos along with a specific list of recommended repairs or upgrades, and if applicable, my opinion of how the potential rent would improve based on those recommendations. If the unit only needs minor work I will initiate it immediately, otherwise I will wait for response or discussion with Owner. Either way, I also discuss with the Owner at this time what the market suggests the new asking rent should be, and confirm his strategy for the foreseeable future regarding hold, sell, or whatever in order to (hopefully) not spring any surprises on new tenants.
Owners are welcome to provide us with contact info for their preferred vendors, but we let them know that standards must be met with regard to timeliness of repairs, interaction with tenants, and, if we will be paying the invoice out of their income, they will need to be properly licensed and insured. If the Owner insists on handling directly, they are 100% responsible for the outcome and payment.
If it was deemed an emergency, then that should be covered in your contract. (This from the person-me-who is a bit annoyed her PM charged her $750 to replace a cartridge in a tap and the same thing happened less than 2 months later-still waiting on an answer if it was the same faucet the second time or just bad luck.)
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