PM Didn't Make Repairs-Liable for Damages?

Question

This sounds like a legal no-brainer, but wanted some back-up from the group. My PM in Columbia, SC notified me of a potential water heater problem last August. I recommended they make the necessary repairs. Since I never received an invoice, in January I enquired if the repairs were done. They weren't. Delaying such repairs could've caused the water heater to fall through the ceiling and do considerable damage, both to person and property. I sternly advised them to quickly address the matter, reminding them of their liability if the worst happens.

Today, I get a casual email stating the tenant called the emergency line over the weekend to report the water heater had burst and water was leaking through the ceiling. The PM asks if I "approve the repair". Their neglect and incompetence contributed to the magnitude of the final problem which, I believe, they are ultimately liable for. I gave them two choices: 1) Decide what is fair compensation/reimbursement  OR 2) Let a judge decide.

I know this happens more than it should. Have you ever had to take a PM to small claims for being negligent in their maintenance duties?

Thanks!

Caleb Heimsoth · Answer

@Jeff M.  Liability wise it may fall on the PM but you’re the owner.  Sometimes it’s up to you to ensure the work gets done.  I agree that this shouldn’t be the case but reality is different.  If you never received the invoice, then it never got done. I’d have followed up about 3 months prior to when you actually did to figure out if it was done or not.

I always laugh when people say REI is “passive income”. It may be passive relative to a normal job but it’s not truly passive if you’re a landlord.

Ryan McCue · Answer

@Jeff M.  i hate that this happened.  I have had small instances where a pm did not complete work they said the would or even claimed to have completed.  I am shopping for a new pm and wonder if you would DM me the company so I can avoid.  Thanks

Theresa Harris · Answer

Even if that was true, had they got the repair person there, chances are good they would have seen the 'other' problem.  Hopefully you are able to get a good solution.

Nathan Gesner · Answer

@Jeff M.  You are welcome to come by and introduce yourself!

Jeff M. · Answer

Thanks everyone for your thoughts!

@Theresa Harris Thanks. They're claiming the original needed repairs are unrelated to what happened. Classic PM move to distance themselves from liability.

@Bryan Cork Yes, I have a detailed email chain from last August. Judge Judy says, "Guilty!"

@Will Gaston I'll PM you the PM.

@Nathan G. Thanks! I totally agree. I'll first give them a chance to make it right and then reassess. Off topic, I'm in Cody, WY every July for the Heart Mountain Pilgrimage. We did a doc about Japanese American internment specific to the Heart Mountain camp. Been about 7 times...will be there this July. I dig the town!

Nathan Gesner · Answer

@Jeff M. I've never had this happen to me but I have heard of it happening. As a PM, I've dropped the ball on a couple things and my policy is to pay for my mistakes. I've paid over $2,000 to one owner for one mistake.

Collect the details of your previous communications. Write the PM a letter stating your case and politely suggesting they pay for the cost of repairs. You planned to repair/replace the water heater anyway so maybe go easy on them for that cost but definitely hold them accountable for any repairs.

If they refuse to take responsibility, you can try filing a complaint with the real estate commission and see if that motivates them to do the right thing. If not, take them to court.

Bryan Cork · Answer

@Jeff M.

I agree Jeff, as your agent they owe you that obedience, and to act in your best interests at all times. I hope you have the correspondence in writing.

Will Gaston · Answer

@Jeff M. What PM is this in Columbia? Interested as there are a few in my market that I would recommend and curious if this was one of those.

Theresa Harris · Answer

Start by contacting them and remind them that you told them TWICE to have it repaired and they failed to do so.  Ask them what they are going to do since they failed to repair it when you told them.  I would like to think they'd cover the damages though they may make you try to claim it through your insurance-which I wouldn't do as it was partly their fault.  You reminded them in January-recently enough that you wouldn't expect to get an invoice for the repair work.