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Updated almost 2 years ago on . Most recent reply

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Adam K.
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Previous Property Manager requesting payment on unauthorized repairs

Adam K.
Posted

Split with my PM in the spring over their poor management (not paying utility bills) and not gaining my approval for repairs over $300 like the contract stated. One unit in particular accrued nearly $10K of repairs, and I wasn't able to vet or challenge any of that, I didn't think I would have to. 

Months later, they are now claiming I owe about $4k more on the same repairs. Flooring job. To be honest, I could not tell you what they actually did or didn't do.

The vague invoices in question just state "rehab and repairs". Furthermore, the work that they did was not finished, my next PM (much better) had to finish it up, which was about $1,700.

Yes, I am out of state investing, and have had some expensive learning experiences! I wanted to sell, but held on and they are performing now. But how should I approach this? 

Ignore? Demand detailed invoices? Decline, because they did not get my prior approval like the contract states? Properties in OH.

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Nathan Gesner
  • Real Estate Broker
  • Cody, WY
41,410
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Nathan Gesner
  • Real Estate Broker
  • Cody, WY
ModeratorReplied
Quote from @Adam K.:

Do not call an attorney. This is too small an amount and will waste your time. I recently had a claim of $25,000 against a CPA and all the attorneys told me it was too small an amount to bother with. They suggested another route, which I took, and the CPA offered to pay me $10,000 to make the problem go away, which was more than I expected.

Contact the Ohio office of Real Estate and Professional Licensing: https://com.ohio.gov/divisions-and-programs/real-estate-and-...

Ask them how to file a complaint against a licensed property manager. They should point you to the right office. When you initiate a complaint, the first thing they will do is let the PM know a complaint has been filed against them. They will encourage the PM to resolve the issue and make it go away. There is a very good chance the PM will drop the charge just to get rid of you. Nobody wants the state investigating their files, even if they are 100% innocent.

Come back and let us know how it goes.

  • Nathan Gesner
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