Should I ask my PM to pay for bill they can't get reimbursed?

Question

I own one side of a duplex out of state, it's managed by a reputable property management company.

Several months ago I received an email from them saying that there was a large plumbing issue that had to be addressed immediately - the main line collapsed and needed fixing ASAP. They had talked with the owner of the other side of the duplex and verbally agreed to share the bill. They called a plumbing company and fixed it. All of that was done without my knowledge before they had a chance to tell me because of the urgency. I was billed for the job, and my PM has been trying to get the other owner to pay me back half the bill.

Now we're months later and the other owner is unresponsive. My PM gave up on trying get them to pay their 5k. I'm very annoyed that my PM let something this big go by without a written agreement.

Would it be fair for me to put the responsibility on my PM for how they handled it, or do I just need to suck up the fact that I lost that money and it's not their fault?

Mackenzie Grate · Answer

I hear you and this is a frustrating situation for sure. Definitely review what your contract says, but also consider this...do you like your PM and do you want to continue working with them moving forward. If so, you may have to compromise here... You want to be delicate and not ruin the relationship. If you really like them, have a critical conversation for how you would like an issue like this handled in the future and put it into writing. Sometimes it's better to eat a cost than to burn a bridge. Especially if they provide significant value to you overall...

Good luck! You got this!

Adam Martin · Answer

I had a water line leak and the plumber came out same day but there was still a 2 day wait until they could fix it since the utilities had to be flagged by the city before they could dig so others have said this is a slow process and there was plenty of time to contact you.  They either chose not to deliberately or forgot.  That said as @Drew Sygit said what would you have done differently because other than providing you notice I don't really see what they could have done differently.  Even if the neighbor didn't agree to pay you still were going to get the line fixed.  5k is a lot of money so I'd get the contact info for the neighbor and try to contact them to get this resolved and possibly work out a payment plan if necessary.  If that doesn't work just take them to court and hopefully this will drive them to pay but if not just put a lien on the property and when they eventually sell you will get your money back plus interest.

Theresa Harris · Answer

Your PM should be dealing with this.  Threaten the neighbour with small claims court.  I doubt there was no time to notify you.  Replacing the main line would have taken days.  Yes it needed to be dealt with right away, but once the company was called, the PM should have called you.

Drew Sygit · Answer

@Dean Attali

It depends on what your contract says.

We always seem to have an issue with owners getting back to us during emergencies, so while no excuse, we can understand your PMC choosing to contact you "late".

The bigger question is, "what would have gone differently if they had involved you immediately"? In fact, that's probably what a judge would ask if you took your PMC to court over this.

From what you've shared, we don't see anything that would have gone differently. Please point out what we may have missed...

So, instead of wasting time trying to pin this on your PMC, why not work with them to resolve it?

Perhaps they can give you the other owner's name & number and you can call?

Check state laws about putting a lien on the neighbors property.

Authorize your PMC to take neighbor to court. Check the state laws about who can start a smalls claims case. For example, in Michigan, only a person can file in small claims. So, either you would have to file yourself (as long as property NOT in an LLC) or your PMC will have to hire an attorney to file in district court.

Nathan Gesner · Answer

I have to agree with Theresa. Replacing a sewer line doesn't happen at 7pm on a Saturday. This would have taken a couple days to determine the problem, line up the contractors, and complete the work. Your PM could have easily picked up the phone and called you within 24 hours. Rather than call, your PM decided to send you an email after they had already sent contractors, after they had spoken with the neighbor, after the job was completed, and apparently after the bill was paid. Nonsense.

What does your contract say? It should state they need your permission for any repair over $X unless it's an emergency. Even if it is an emergency, they should contact you as soon as possible. From what you've shared, they failed to notify you until long after.

Your PM shouldn't be allowed to bind you to a legal agreement without your permission. They made a verbal contract with the neighbor, so it's their responsibility to collect from the neighbor. I would pay the $2,500 and include a strongly worded demand for an explanation as to why they waited so long to contact you. I doubt they have a valid excuse and they should pay for their mistake.

Should I ask my PM to pay for bill they can't get reimbursed?

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