Tenant moved out, now I have $8000 repair needed

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Tenant moved out, now I have $8000 repair needed

Peter Sik
Los Angeles, CA · Member since 2016 · 134 posts · 15 votes

I owned a rental property in Adelanto, CA. Monthly rental income raised to $1000, $600 security deposit. 

This tenant leased for 6 years and just moved out last week. So my PM done the inspection there. Found out I have like $8000 repair needed. This is insane....  

Left a lot of trash there and the removal fee is $1040!!

Here is what I am going to do:

1. Ask my house flipping friend to coordinate all the repairs, hope can cut down the cost.

2. Tell the PM to replace AC filer every quarter and ask tenant what needs to be repair and have condition checkup.

I don't have such experience to deal with large repairs. Want to hear your suggestion on what should I do with PM and tenant. Should I apply a claim to the tenant?  Thanks in advance

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Robert Hudson
Crossville, TN · Member since 2017 · 121 posts · 168 votes
9y

Considering that this is in California, each item probably requires a permit and light bulb replacement can only be done by a state licensed, bonded and insured light bulb changer. 

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  • Peter B.
    Investor · Ogdensburg, WI · Member since 2016 · 273 posts · 351 votes
    9y

    I just had a very similar repair list. On a long term tenant, in a sfh..  It's amazing some of the things they can wreck...

    The trash removal seems really high. I have an enclosed trailer. We fill that take it to the landfill/dump.It holds nearly as much as a 20 yard dumpster.. It costs about 70-100 bucks. Plus labor and fuel. 

    Other than that the repairs look pretty standard if you hire it out. 

    Appliances I can get at sears outlet for probably under 700 for all..  

    0Reply
  • Bob Razler
    Rental Property Investor · Boca Raton, FL · Member since 2017 · 329 posts · 237 votes
    9y

    Hello @Peter Sik:

    I would echo @Peter B. .  You can get the appliances cheaper.  Alos, you should be able to handle the trash removal yourself with hired labor (here in FL we can get 2 guys for about $100 a day each from a labor company).  They may be planning on getting a dumpster.  That might be the major cost there.

    The painting is also your big number.  Maybe you can get that cheaper.

    Good luck with it.  I hope you can knock the number down.

    Bob

    0Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    9y

    for a 6 year run with same tenant this is about right... 10% is what most folks put aside for turn over and maintance and a little more for capex .. your right in line with what I would expect for a 6 year tenant..

    I just bought a extreme case were owner lived there 10 years and acquired over 250,000 lbs of crap I had to haul to the dump cost me 60k  this included demo ing the house but the haul off charge alone was 40k ..

    if your putting 100 a month away 10%  for turn over which you should  and another 10% for cap ex which you should.  run the math.. 6 years that's  72 months that's 7,200... other than a little bit of trash.. you will have a brand new unit when its done..

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  • Levi T.Pro Member
    Rental Property Investor · Tucson AZ / Nice FR / Washington DC · Member since 2016 · 1k+ posts · 1k+ votes
    9y

    Welcome to party!

    Trashout price is crazy, you can rent a UHaul truck and pay someone $15 an hr for a few hundred. Hit up CL. Most we have ever paid was $400 for about 1.2k sqf house. Average is $150-$200. 

    The dishwasher price is outrageous IMO. Must be a really high end unit. We get them for $200 from Lowes.

    They are nickel and diming you on the smalls.. $20 here, $60 there.. $100 over there. That's pure profit for them. They should be doing that pricing in bulk. How long you think it takes to replace a light switch cover that cost less than $2. Couple minutes at best. Our guys will do all that normally for $200-$500 total. 

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  • Rick BassettBusiness Member
    Property Manager · Greater New Haven, CT · Member since 2010 · 377 posts · 434 votes
    9y

    I just had a 6 year tenant leave one of our places with a similar list, he rode it pretty hard as well. I did annual inspections but it was hard to see the issues through the clutter. We spent $3,000 cleaning & repairing the aftermath. $1,600 was his security deposit and the rest from maintenance reserves. Still well ahead of the game as we had no turnover costs for 6 years. 

    Your PM's prices seem to be high. Agree with others on trash hauling also we purchase blinds @ HD for $6 per window, a whole house costs less than $200.

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  • Lynn McGeein
    Real Estate Agent · Virginia Beach, VA · Member since 2012 · 2k+ posts · 1k+ votes
    9y

    Our PM sends us the list before turnover, but then we can decide if we handle it ourselves, handle parts of it, or let them deal with it all.   If I got this list from our PM,  the haul away, painting, cleaning fee, and appliances would all be cause for me to plan to handle it ourselves as those prices seem extremely high.  In addition, overseeing it ourselves, we catch other things PMs and tenants don't pay attention to, like loose pickets on fences or porch railings, sills starting to rot that need a coat of paint, caulking around tubs and sinks, tightening loose handles on sliding glass doors, etc.  Checking in with your investment every once in a while is a good thing, and doing it at the same time where you could save a lot of money by handling or organizing some of this yourself just makes sense.        

    0Reply
  • Andy Crooks
    Real Estate Broker · Verona, WI · Member since 2017 · 44 posts · 34 votes
    9y
    Do any of you guys use hdsupplysolutions.com for your PM supplies? We don't get everything there, but their prices are very competitive on certain items. For example, I haven't found a better resource for blinds.
    3Reply
  • Walt Dockery
    Investor · Winter Park, FL · Member since 2017 · 171 posts · 165 votes
    9y

    Do you live nearby and have you been over to see the inside of the place?

    Assuming it's all legit, as others have said a lot of that I would either do myself or hire out myself.  Seems they are nickel and diming you on small stuff ($45 a/c filter? $50 to change a lightbulb?).  I'd deal with trash and smaller stuff and buy appliances myself, and get quotes from my own people on the larger stuff. Even cleaning fee $415 I bet you could hire a cleaning service for a lot less than that.  Then again, I don't use a PM that you are using them maybe that means you are unable to do or directly hire this stuff out?

    0Reply
  • Bruce Ellerd
    Investor · Albuquerque, NM · Member since 2015 · 63 posts · 18 votes
    9y

    Plus a fee of $50 to replace light bulbs, hmmmm . . . seems to me like the PM is funding his retirement on you.

    0Reply
  • Brian Ploszay
    Investor · Chicago, IL · Member since 2009 · 1k+ posts · 1k+ votes
    9y

    I looked at your costs.  I generally get this work done for a lot lot less.   In order to survive as a landlord, you can't pay retail prices for your repairs.  I found a handyman, but it took awhile to get a decent one.  

    One example to help you:  I buy good used appliances for my rentals.  If you have an upscale rental, buy new.

    0Reply
  • Bettina F.
    Investor · Post Falls, ID · Member since 2016 · 606 posts · 699 votes
    9y

    Except for the dishwasher and the range hood install, my husband and myself have done all of these things.  Towel bars, light switches, changing blinds, spreading landscape rock, dump runs -- you should at least attempt these things your self.  In fact, this is a pretty good list of needed property maintenance skills for any LL.  What do you do when your own home needs these things?

    You are also buying expensive appliances.  Does your property justify a stainless steel dishwasher?  We just installed a $325 basic model from Lowes in our class B apartments.

    I have heard that turnover costs are higher in Class A rentals because the tenants expect perfection, but I did not see anything about refinishing hardwoods or pool repairs.  

    0Reply
  • Robert Hudson
    Crossville, TN · Member since 2017 · 121 posts · 168 votes
    9y

    Considering that this is in California, each item probably requires a permit and light bulb replacement can only be done by a state licensed, bonded and insured light bulb changer. 

    10Reply
  • Sam Leon
    Investor · Fort Lauderdale, FL · Member since 2012 · 1k+ posts · 465 votes
    9y

    Is this list a complete surprise or the PM has been building a list over the years?  No one did any inspection of the property all this time so that any damages can be repaired and remedied while the tenant is occupying the property and repaired can be billed along the way?

    I understand painting, cleaning, changing light bulbs etc...but Why would missing door knobs, bathroom safety handles, broken closet doors, mini and vertical blinds, dishwasher and stove bad enough to warranty new units, all of this went unnoticed?

    0Reply
  • Antoine Martel
    Investor · Los Angeles, CA · Member since 2016 · 577 posts · 240 votes
    9y
    This is crazy. You can pay someone on craigslist $200 to remove trash for a whole week. This doesn't make sense and you should never have to pay that much to exchange a tenant.
    0Reply
  • Justin Fox
    Software Developer · Vidor, TX · Member since 2015 · 922 posts · 639 votes
    9y

    At least you owned your time, right?

    2Reply
  • Greg Hamer
    Real Estate Agent · Carmel, CA · Member since 2015 · 193 posts · 128 votes
    9y

    seems high. especially if the labor is NOT included for some of the replacements.   You should be able to knock it down by a few grand IMHO.

    I agree with the others.  Hire some labor to get the heavy lifting done.  Get a good handyman and stop paying retail for everything.  If you a nearby, do sweat equity.

    0Reply
  • Victor Rios
    Investor · Humble, TX · Member since 2015 · 73 posts · 4 votes
    9y

    These are mostly all  things you can do yourself. 

    0Reply
  • Peter Sik
    OP
    Los Angeles, CA · Member since 2016 · 134 posts · 15 votes
    9y

    Thank you so much for all replies!

    I live in oversea that's why I can't DIY myself. 

    My PM quotation is way too expensive.  And many things in the list is not necessary to repair whole or just repair part of it. All it needs is basic things as long as it is functional.  

    After hearing all the opinions, I will seek for a right person to coordinate all the repairs. I hope to get this done asap at lower cost.  That's why it is very important to have a good friend or relative who can visit for your rental property to have a back up  other then the PM.

    0Reply
  • Max T.
    Investor · Philadelphia, PA · Member since 2015 · 3k+ posts · 3k+ votes
    9y
    I had a 6 yr tenant move out. Cost me 4K (self manage) and I returned the whole deposit. Normal wear and tear.
    1Reply
  • Matthew Paul
    Severna Park, MD · Member since 2013 · 7k+ posts · 7k+ votes
    9y

    The prices  may be in line for his area .  But the PM is either having their crew doing the work or subbing it out , they do have to make a profit . They dont look for the cheapest , they look to get the job done by qualified insured contractors . Those 15 dollar an hour guys off the street doing the trash out get hurt on your property and guess who pays 

    0Reply
  • Vincent C.
    Downey, CA · Member since 2015 · 3 posts · 1 vote
    9y

    Hi Peter, 

    I also have rentals in Adelanto and fired my property manager due to outrageous costs, among other things. I have a few contacts (handyman) that do most of my work. Where exactly is your rental located? South or North Adelanto? 

    0Reply
  • Peter Sik
    OP
    Los Angeles, CA · Member since 2016 · 134 posts · 15 votes
    9y

    @Vincent C. it is located at S. Adelanto, very close to 395 and 18. I finally found a general contractor who has been working with my friend (house flipper) in L.A. He is willing to drive long distance to work for me. To complete everything, he charge between $7500-8000. Well, cheaper then my PM quoted me. I am thinking to change PM because they don't say a word regarding the previous tenant damage, and just send me the quotation to repair this and that. Also, if you read the PM repair list, they charge $755 to replace the stove. In fact, the stove we tested is 100% working! 

    Which PM are you using now?

    0Reply
  • Account Closed
    Investor · Boca Raton, FL · Member since 2017 · 108 posts · 18 votes
    9y

    too costly nickel and diming like someone said towel bar this $30...nah find a good handyman..$750 SS oven? ...Everyone gotta eat but seems too high. Best of luck

    1Reply
  • Paul S.
    Suburbs, OH · Member since 2014 · 26 posts · 3 votes
    9y

    This is pretty scary to a new investor. Did you have your PM do regular unit condition inspections?

    0Reply
  • Roger S.
    Investor · TX · Member since 2015 · 393 posts · 290 votes
    9y

    Good lord, I hope you at least get dinner and a kiss after this.

    0Reply
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