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Updated almost 3 years ago on . Most recent reply

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66
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61
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Michael A.
  • Financial Advisor
61
Votes |
66
Posts

PM doing lawn care without asking

Michael A.
  • Financial Advisor
Posted

I own a duplex in Ohio with one unit occupied. I’m remodeling the empty unit so I can get it rented out soon. My property management team charges me 8% monthly and I like them better than the other ones that charge 10%. 

My issue is that the contract allows them to make decisions (I.e maintenance) without asking me for approval. I like to be in full control of what goes on at my property and do not want them to make decisions without asking me. 

One example is that my PM hired a Gardner for lawn care and he made two trips for $40 each. Recently the tenant paid $850 rent for May and I was expecting to receive $850 x 8%, which is $782 for May. However, I received $551 because the lawn care was subtracted plus a +$150 reserve for the city lawn care account. 

I have a PM for book keeping, collecting rent, and finding new tenants when there is a vacancy. I do not want my PM doing things that will cost me money or anything beyond the 8% fee. Another thing I don’t like is that the PM has the ability to change the leases. For example, my tenant is month to month and my PM has the authority to change it to one year with tenants approval. I had to specify to my PM that decisions like this can never be made without my approval.


I knew that my PM has this authority when I signed the agreement but I think I should have clarified from the start what I would not like my PM to do. My PM is a nice person and I think I just need to make my boundaries more clear. I basically have to manage my manager. 

Most Popular Reply

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28,239
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41,490
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Nathan Gesner
  • Real Estate Broker
  • Cody, WY
41,490
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28,239
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Nathan Gesner
  • Real Estate Broker
  • Cody, WY
ModeratorReplied
Quote from @Michael A.:

It's your fault. You signed the agreement knowing you were giving them the authority, and now you are upset that they have the authority.

Did you plan to just let the grass grow forever? Are you the kind of Landlord that doesn't want to spend a dime on maintenance because you can't afford it and need to count every dime?

I suspect your PM is not going to enjoy working with you.

  • Nathan Gesner
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