Am I getting ripped with maintenance expenses from PM?

Member since 2020 · 78 posts · 27 votes

Hi Guys, can you share your opinion, please? Am I getting ripped with current property management? 3k for fixing gas line leaks. What are your thoughts and recommendations?

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Steve Vaughan

Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes

I say yes, you are being taken. I've never had to do more with a gas line than replace a valve or dope and tighten a fitting.

A $250 w/heater repair? To do what? I've replaced t-stats and heating elements. The kit is $40. I've also replaced one t&p valve. $15. Not much else to repair on a w/h. Drain valve maybe but in 20 years with dozens of tanks I've never needed it.

With labor I could see a lower element or drain valve costing $250 but ask what was specifically done. T-stats take 5 minutes.

Your PM needs to be more specific about both 'repairs' and provide you before and after pics. Do you not have a $300 cap on repairs they can make without your consent?

These are the real costs of having a PM. Repairs and fill fees. Everybody gets hung up on the % of rents.

My PM tried to mess with me, but I'd go over and square it away myself. 3 days ago I got a $600 quote to replace the leaky irrigation backflow valve and troubleshoot wiring to the timer. I fixed both in 20 minutes and told the irrigation guy to not come back. This wasn't a direct quote from the PM so I will keep them for now.

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Artur A.
OP
Member since 2020 · 78 posts · 27 votes
4y
Do you recommend moving forward with a new PM or speaking with the current one and require to have pictures before and after the fix?
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Artur A.
OP
Member since 2020 · 78 posts · 27 votes
4y
Do you ask for photos (before/after) for all maintenance expenses or only if exceeded some amount (e.g. $500)?
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Rodney Sums
Laveen, AZ · Member since 2016 · 584 posts · 528 votes
4y
Quote from @Peter Tverdov:

Without reading the responses I am going to guess all the DIY landlords rush ITT and tell you that you're getting robbed.
We run a PMC in NJ and had to pressure test and replace a handful of gas leaks about 2 years ago and I believe the bill was in the $2500 range, so at first glance, no I don't think you're being robbed.
Contrary to popular opinion on BP, a lot of PMs are fair and honest. Don't hire the cheapest company and understand if your property is dated and has not been kept up properly then it will be expensive in the beginning to get everything corrected.

The part that is concerning is according to the OP, no estimate was provided prior to doing 3k worth of work. He will have to share responsibility for being put in a position to receive such a bill unexpectedly if there was any conversation about the need for repairs beforehand. The language of his management agreement is key.
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Rodney Sums
Laveen, AZ · Member since 2016 · 584 posts · 528 votes
4y
Quote from @Artur A.:

Hi Guys, can you share your opinion, please? Am I getting ripped with current property management? 3k for fixing gas line leaks. What are your thoughts and recommendations?
How did you arrive to getting a bill for this much and it be a surprise?

What problem led up to the assessment of the gas lines and water heater?
Did the property manager tell you who was going to do the assessment and potential repairs? Were they licensed plumbers?
Did you give them carte blanche to figure out the problem and solve it without talking to you first? How does your management agreement read? Does it allow for them to make repairs without your authorization for any amount or is a threshold in place?

In the future, make sure your PM understands repairs require an estimate for your approval. Once you have it, always order more than one estimate if it's a high dollar ticket
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