Property manager refusing to provide receipts of repair

5 Replies

My property manager is declining to provide a receipt of the repair that he/she conducted. Instead he/she claims that his/her invoice is sufficient. I am concerned that he/she is either filing bogus small expenditures OR performing services himself/herself and making profit. Do I have the right to see receipts?

Abhishek

There is nothing wrong with a property management company doing repairs themselves and making a profit . Thats basic business 101

I agree with Matthew about nothing wrong them them doing it themselves, but the rates should be competitive.  Tell them you want to approve any non-emergency repairs as you might be able to handle them yourself.

@Abhishek Singhal ,

This is a mixed bag.  It comes down mostly to your Management Agreement, although I doubt they would expose themselves from this clause.

  • Max Spending: What is their limit to spend without your permission?  Typically ranges from $250-1,000; most require $500. If it's over the limit and wasn't life or unit threatening, then they breached their own contract.
  • Markups:  What does the agreement say for markups?  Typical options are: pass-thru, flat rate or percentage.  Confirm their markups align with the agreements
  • Contractors:  Do they use an internal or external maintenance team, excluding MEP scope?  If it's internal then good luck getting them to share the invoice because it's not uncommon for extra hours to be billed for profit or when handyman hours are short that week.
  • Scope:  What was the scope that they repaired?  And was it life or unit threatening?  Confirm it was indeed a landlord issue and not tenant.  If the scope wasn't necessary, then make a point to inform them they are not to handle those types of tasks in the future.  For example, sliding closet came off the tracks or drywall repairs.  Especially if they have a markup, watch out for the PM's who will send a handyman out to repair anything/anywhere/anytime.  That's a revenue source.
  • Self-Perfoming:  It's not uncommon for PM's to have a handyman to self-perform.  You need to know what their minimum trip charge is and hourly rate.  Forbid them to perform overtime work, unless its life or unit threatening.

Chances are slim you will get detailed receipts from them.  This is unfortunately the downside with hiring full-service property managers; you lose complete control of your unit and finances.