Recently, I’ve had a little set back with my PM that’s managing one of my properties out of town. My understanding was that as a PM, when there is a tenant issue, they should try to find the cheapest solution without always having to send someone out and charging me the invoice. Example was that last month, there was an issue with the AC unit under performing. They wanted to send out my warranty company to try to resolve the issue. During that time, it was hard for any unit to keep up as it was in the middle of the summer and with the Midwest humidity it overworked the unit. Long story short, I spoke with PM and they said issue was resolved because it was hot and humid and it’s typical for most residential units to keep up, also ac cleaning and changing of the filter were two tasks that the tenants was responsible of according to my PM. Forward to today, I got an invoice from my PM from a heating and ac company for $112 that was from July. Basically I was charged for something from July in August to make it seem like there were no expenses in July because I did complain to my PM that since we rented this house to this tenant, we have yet to have a month without any complaints or invoices. I hope this makes any sense at all. My issues is that every time the tenant wines the PM fixes the issue and bills me the invoice without finding another alternative or a cheaper alternative. Thoughts?
@Nadir M. sounds like the PM is just doing their job. An AC unit that can’t keep up is not functioning properly. $100 and change seems like a reasonably priced fix.
@Lucas Carl correct but I was invoiced in August for a job that was in July when I was told it was fixed in July and that it didn’t cost anything.
@Nadir M. Then were there actual two repairs done in July and you're just now receiving the bill for one of them?
@Matthew Reichert I was told the issue was fixed, the call from the warranty company was canceled, but apparently there was a repair done and I was invoices for it the following month when I was told it was taken care of.
This seems more like something to talk to the PM company about right now, not us. Feels like there's confusion from missing information and we won't have that info, but the PM should.
@Nadir M. Often companies take a while to send invoices meaning it takes longer for the PM to bill you for it. It is not unusual to get an invoice the month following a repair rather than in the month in which it was done.
Not sure what type of rental you have, but you shouldn't have something going wrong every month. My one unit where I have a PM, it seems whenever there is a turnover, I get bills for something that needs to be repaired. Not unusual as they can go in and really see if there are problems. Some tenants are needier than others, but if you are getting monthly repair bills every month with multiple sets of tenants; I'd talk to your PM and also go and inspect the property yourself.
I have had vendors before that I had to chase to get an invoice a few months later sometimes (especially cheaper single man companies) are swamped and don't send the invoice til super late. Now if they were doing it to make it look like no work was done in July than that's wrong, But I don't see how the amount of work needed would fall on the PM its more of the condition of the property when it was bought so not sure why they would lie about it.
Some companies invoice weeks, sometimes months after they do the service, but all dates of service should be on the original invoice.
As a side note, most warranty companies are worthless and take almost a week or more to come out for their lowly $75 fee they receive from their warranty company!! its a joke. I never buy nor recommend those for anyone. They send out experienced and people who really dont care about your property, and have no business relationship with the individual.
Thirdly, why are they constantly complaining, sounds like the house was not ready for occupancy, or has a lot of deferred maintenance.
@Nadir M. You have a misunderstanding of how PMs work. A tenant calls in with the issue, the PM will likely just send a person to go fix said issue. They did that and you pay for it.
My PM simply emails or calls me when a tenant issues a maintenance request. Then I decide to either take care of it myself with my vendors or tell them they can send someone to fix it.
I don’t see what the problem is here? That the PM didn’t let you know first? A PM will not fix things the cheapest way. Often times it’ll be quite the opposite since they aren’t paying for it.
It sounds like you expect real estate to be passive. Directly owning rentals is not passive at all.