help -my Property manager over spent on Repairs !

help -my Property manager over spent on Repairs !

Rental Property Investor · Los Angeles, CA · Member since 2020 · 15 posts · 2 votes

Hey guys ! I have a question for how I should handle a situation. I live in CA . I have a PM for 4 units in TX. rents are not much but for the last 5 years PM has done a great job. No real problems at all. We have agree that he has to call me for anything over $400 in repairs to discuss. Rents gross are only $2300 a month between all 4.

I got a call out of the blue this Monday about a gas line that was leaking the week prior at one of the units. He said that the tenant called the gas company to shut off gas. Tenant then called PM and Licensed plumber to come figure out problem and repair (instead of allowing pm to handle). Over the span of 3 days, plumber completed job with permits and all.

I had no idea any of this was happening and my PM seemed like he had no idea of all of the work involved either. A bill for the work came in at $4800! approx. $3800 of that is Labour. seems crazy high. Any ideas on how to proceed?

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Payton HaightBusiness Member
Real Estate Agent · Columbus, OH · Member since 2021 · 124 posts · 86 votes
1y

hey Joshua! That is a tough situation. Sorry to hear about that. From my understanding, your tenant had all of this work completed without you or your property manager's consent, correct? Do you have anything in your leases about how repair issues should be handled? 

A gas leak can be a major emergency so it seems reasonable the tenant called the gas company immediately to shut off the gas. Past that, I would have expected the tenant to call your PM and have them handle all of the repairs. I am assuming the work that was done was necessary so you would have been paying for SOME amount of repairs to get this issue fixed no matter what.

If you have a detailed summary of the work that was completed and your lease indicates that the tenant should not be handling repairs themselves, you could get the work quoted by 1 or 2 other plumbers. If the quote from the other plumbers is significantly lower, then perhaps you charge your tenant for the difference. OR maybe use this issue as a teaching moment for the tenant and your property management company. Just a couple of ideas.. 

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  • Payton HaightBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2021 · 124 posts · 86 votes
    1y

    hey Joshua! That is a tough situation. Sorry to hear about that. From my understanding, your tenant had all of this work completed without you or your property manager's consent, correct? Do you have anything in your leases about how repair issues should be handled? 

    A gas leak can be a major emergency so it seems reasonable the tenant called the gas company immediately to shut off the gas. Past that, I would have expected the tenant to call your PM and have them handle all of the repairs. I am assuming the work that was done was necessary so you would have been paying for SOME amount of repairs to get this issue fixed no matter what.

    If you have a detailed summary of the work that was completed and your lease indicates that the tenant should not be handling repairs themselves, you could get the work quoted by 1 or 2 other plumbers. If the quote from the other plumbers is significantly lower, then perhaps you charge your tenant for the difference. OR maybe use this issue as a teaching moment for the tenant and your property management company. Just a couple of ideas.. 

    • Rental Property Investor · Los Angeles, CA · Member since 2020 · 15 posts · 2 votes
      1y
      Quote from @Payton Haight:

      hey Joshua! That is a tough situation. Sorry to hear about that. From my understanding, your tenant had all of this work completed without you or your property manager's consent, correct? Do you have anything in your leases about how repair issues should be handled? 

      A gas leak can be a major emergency so it seems reasonable the tenant called the gas company immediately to shut off the gas. Past that, I would have expected the tenant to call your PM and have them handle all of the repairs. I am assuming the work that was done was necessary so you would have been paying for SOME amount of repairs to get this issue fixed no matter what.

      If you have a detailed summary of the work that was completed and your lease indicates that the tenant should not be handling repairs themselves, you could get the work quoted by 1 or 2 other plumbers. If the quote from the other plumbers is significantly lower, then perhaps you charge your tenant for the difference. OR maybe use this issue as a teaching moment for the tenant and your property management company. Just a couple of ideas.. 


       Thank Payton! Yes, from what i can gather, my property manager sent our guy out there but the guy showed up to an already started job. We responded the day that she notified us but she notified us after work seemed to have already started. She smelled gas and took action. I dont mind paying something if it helps the property and if i was already going to have to make a repair, it should seems wild to charge this much without my consent. Thanks for the suggestion regarding quotes. Im in the process of contacting a couple of local companies. I'm I haven't talked to the plumbing company that did the work. I plan to talk to them directly once i have the quotes.

  • Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
    1y

    Find out if repair is/was reasonable. If so, no problem, tenant saved you hassle. 

    If not. Figure out why the PM did NOTHING for 3 days after being notified of a gas leak. All they had to do was send someone out to look at the problem and they would have noticed someone working on it. We usually fix “stupid” stuff the same day, we certainly would have had someone look at a gas leak the same day. 

    Lastly, if the price is unreasonable talk to the plumber see of there’s any compromise. Show them them multiple quotes that are at least 25% less. (Or don’t bother.) Then ask them if the tenant told them they were the owner or a tenant. ZERO companies should start any job, much less a major job without the owner’s signature/approval. They can argue this but what if the bill was $13k, or $23k? You didn’t agree to pay $1. Maybe the tenant did and they could be forced to pay?

    Anyway. Hopefully you find out the quote is/was semi-reasonable so that problem goes away. Then you just have a PM problem. 3 days with no action on a home with either a gas leak or no gas? Not too good. 

    Ps. Can you get confirmation from gas company they detected a leak? Hate to think there was never a leak and the guy was just giving his friend a good gig. 

    • Rental Property Investor · Los Angeles, CA · Member since 2020 · 15 posts · 2 votes
      1y
      Quote from @Bill B.:

      Find out if repair is/was reasonable. If so, no problem, tenant saved you hassle. 

      If not. Figure out why the PM did NOTHING for 3 days after being notified of a gas leak. All they had to do was send someone out to look at the problem and they would have noticed someone working on it. We usually fix “stupid” stuff the same day, we certainly would have had someone look at a gas leak the same day. 

      Lastly, if the price is unreasonable talk to the plumber see of there’s any compromise. Show them them multiple quotes that are at least 25% less. (Or don’t bother.) Then ask them if the tenant told them they were the owner or a tenant. ZERO companies should start any job, much less a major job without the owner’s signature/approval. They can argue this but what if the bill was $13k, or $23k? You didn’t agree to pay $1. Maybe the tenant did and they could be forced to pay?

      Anyway. Hopefully you find out the quote is/was semi-reasonable so that problem goes away. Then you just have a PM problem. 3 days with no action on a home with either a gas leak or no gas? Not too good. 

      Ps. Can you get confirmation from gas company they detected a leak? Hate to think there was never a leak and the guy was just giving his friend a good gig

      Bill!

      thanks, yea, it sounds like the repair was reasonable. What doesnt seem reasonable is the price. I flip houses in Los Angeles and that price wouldnt fly out here for a house double the size for the work they did. My pm did respond with our plumber but work was already in progress so my PM was surprised. What my PM should've done is stopped everything and get quotes on the job. He didnt. Either way, it seems like an unethical practice to run up a bill and Suprise the owner with it after the job is done.  Im going to get some quotes. My guess is that the tenant panicked and didn't care about the cost and just asked anyone to handle the job thinking that it would be the Landlords responsibility to pay. There really is no way to detect if there was a leak. I mean, I cant think of a way to verify if the job was even completed since i live out of state. I guess i can ask for pictures. 

  • Payton HaightBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2021 · 124 posts · 86 votes
    1y

    Of course! Bill makes some great points. The plumber that did the work should not have been starting any major repair work without the owner's consent. You can potentially use that as a negotiating point if you find you were overcharged significantly for the work done. 

  • Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
    1y

    @Joshua Garcia. Sorry, that’s what I meant. If the price/work done seems reasonable, not that they did it. 

    Yes. The PM should have either stopped the work or reiterated they weren’t paying. It wasn’t really unethical of PM as they are making the same or less than if they did the work, just sloppy/bad execution.  

    Yes, MOST people take before and after pix now even on tiny jobs. I also assume the invoice will say what was done. You could just show that to other plumbers. In regards to proof of leak I was hoping the gas company guy would have a report saying. Gas leak detected, gas main turned off. Not just gas main turned off per request. 

  • Huntsville, AL · Member since 2024 · 50 posts · 23 votes
    1y

    I would be more worried about the PM company than the tenant. Your Property Manager's fiduciary responsibility is to you as their client. If a tenant reported a gas leak to the PM their first call should have been to you. 

    Who chose the vendor? Again if this was the PM company then this should be directed at them. some PM company's mark up their invoices. Most vendor's ask who is responsible for payment before starting therefore should have known it was professionally managed. Many don't need owner consent but work directly with your Property Management Company. Did you look up thei reviews or see if they have a website?  

    Also, calling the utility company should also provide a sense of relief. 

  • Member since 2025 · 316 posts · 119 votes
    1y

    I don't think the tenant is in the place to directly hire a contractor unless it is a imminent safety hazard and owner/pm are not reachable. But it has happened anyway. There are a couple of things to do:

    1. Contractor:

    Have a direct conversation with the plumber to understand: Scope of work; Why the cost was so high; Who authorized it; Was this considered an emergency job; Did they coordinate with the PM at all. Ask for dumentations, photos, ask for crew size, hourly rate, etc. If things don't add up, it's your chance to ask for a discount at least.

    2. PM. He should have done better in terms of responding to the tenants, and handling the contractor. You should have a serious conversation with PM for future issues.

    3. Tenants
    Notify all tenants in writing that they are not authorized to hire contractors without PM/owner approval except in true emergencies when no one can be reached.

    If the job was not an emergency, charge the tenant partially.

    If it was an emergency, try negociate the price down with the contractor.

  • Diego AlvaradoBusiness Member
    Real Estate Agent · Flower Mound, TX · Member since 2016 · 297 posts · 139 votes
    1y

    Hi @Joshua Garcia

    Let us address your issues according on the timeline

    1. Tenant notified gas company about the leak. Gas company will shut off the gas and generate a report indicating where is the leak.

    2. Tenant called the plumber and authorized him to begin the repairs. Make sure that this work was not authorized by PM or the plumber can put a lien in the property 

    3. PM neither stop nor request a quote to the plumber doing the work. This falls into their responsibilities to contact you right away.

    The issue as described appears to be a problem of the PM not acting. That is a big concern and has to be addressed with them.

    Plumbers are always expensive, I am not sure the issue but if it was a large work could be costly though I feel that price is at the high. The main problem is that tenant doesn't care about the cost so she never negotiated.

  • Theresa HarrisPro Member
    Member since 2019 · 15k+ posts · 11k+ votes
    1y

    I agree with others that there are two problems: 1) the tenant calling the plumber and 2) the PM not notifying you for 3 days.  Did you ask the PM's plumber who went to the site that same day to ask what the scope of work was and what they would have charged to do it?  The PM's response when the tenant phoned should have been 1) is the gas off (yes) and 2) we will send someone right away.  That's it.  The tenant shouldn't be calling their people to do repairs.  I get that the PM wouldn't have called you right away as they need to get their people on it and see what is happening, but they should have notified you as soon as they knew what was being done to talk to you.

  • Investor · Milwaukee - Mequon, WI · Member since 2010 · 5k+ posts · 7k+ votes
    1y

    Every gas leak I ever had to deal with was a loose fitting. 

    The process involves the following steps:

    1.) Identify the leaking fitting and then turn off gas

    2.) unscrew the fitting, clean it, apply pite thread sealant, tighten

    3.) turn on gas

    4.) write invoice for $4,800 - (this step is optional ;-)

  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
    1y

    Agree with all the great advice so far, but one possibility is missing - that the tenant knows the plumber they hired and conspired with this plumber to jack up the price!

    Over the years, we've had several tenants try to do this to us. 

    Research the plumber, ask for a copy of their license, breakdown of materials vs labor and how many man hours you were charged for. 

  • Dan H.Pro Member
    Investor · Poway, CA · Member since 2015 · 7k+ posts · 8k+ votes
    1y

    I see the issue being 4 units renting for a total of $2300/month.   The sustaining maintenance/cap ex is bound to kill the return and at that rent point the rent growth has not historically kept up with inflation.  This implies the situation is unlikely to change.

    Now there is a repair of $4800 for a gas leak.  I have no way to know if this was a reasonable cost.   What I do know is everything in a property has a lifespan before maintenance/replacement costs are necessary.   That rent is not sustainable to maintain this property.

    Curious as to what your PM is charging.  10% for 4 units would seem insufficient compensation.

    Good luck 

  • Real Estate Coach · LandlordSkool.com · Member since 2017 · 112 posts · 88 votes
    1y

    Everyone is overlooking the main issue. You should self-manage. 

    This is the typical landlord/property management dilemma: problems happen then the landlord wants to question everything because they’re not in control. 

    No middleman PM will ever care more than you; this is your livelihood, but it’s just a job to them. 

  • Realtor · Oklahoma City · Member since 2020 · 258 posts · 139 votes
    1y

    I agree with @Payton Haight & @Bill B.

    I answered a similar question for a plumbing issue for someone else a minute ago.

    I think that referring back to the lease is essential. Shutting off the gas is a easy thing to do in most cases (at least for Oklahoma). You can probably walk a tenant through this if it were one of mine, or get somoone out their ASAP if it's inside where a carbon monoxide poisoning situation or something else can occur. The PM also should have sent out their maintenance man out to inspect or inspect themselves. Get their opinion if it needs to be hired out if they don't already have a licensed plumber come out.

    This is a crappy situation because there is definitely some lack of accountability on the PM to ensure that the situation is handled in the best way it should. It would be terrible to have to do something that results in major financial costs when it could've been done for less if it was something simple. I would have also ensured you get additional opinions. If a tenant does something & makes a major decision for a repair, but didn't report it up properly even if it was an emergency can still be on the other party. This goes the same for the manager when they have to inform you if their estimates go over the spending limit in order to get an approval.

    Ensuring you uphold the PM to a standard is essential. I had to fire the previous one I had while I was deployed because of similar situations that happened & I wasn't informed until a much later date. Most PM companies are too busy if they manage a lot, or make the most of their money from sales.

  • Kyle MccawBusiness Member
    Property Manager · Keller, TX · Member since 2011 · 1k+ posts · 1k+ votes
    1y

    @Joshua Garcia, this is a tough spot—and unfortunately, one many out-of-state landlords run into.

    Here’s how I’d approach it:

    1. Start with the Agreement – Most property management agreements in Texas (including ours) include a spending limit clause, typically requiring owner approval for non-emergency repairs over a set amount (e.g., $400). But emergency repairs that affect health/safety, like a gas leak, are usually exempt from that limit by law and contract. This protects both the tenant and the property. Reference: Texas Property Code § 92.052 requires landlords to address issues that materially affect health and safety.

    2. Get a Full Breakdown – Request the plumber’s detailed invoice and permit records. $3,800 in labor does sound excessive unless major excavation or line replacement was involved. You might consider a second opinion to assess the reasonableness of that work.

    3. Evaluate the PM's Response – If your manager genuinely wasn’t informed until after the tenant initiated the work, that’s an operational issue to address moving forward. But if they coordinated everything without notifying you, despite the agreement, that’s worth a direct conversation and potentially revisiting your contract terms.

    4. Prevent This Again – I’d suggest your PM reinforce a protocol where tenants must report issues through the PM first—unless it’s an active emergency. At our firm, we educate tenants on this and have 24/7 procedures in place.

    5. Long-Term Lens – You’ve had five good years with this manager. This could be a one-off situation that simply needs better policy enforcement. But if you feel trust is breaking down, that’s something to act on sooner than later.

    Lastly, you’re doing the right thing by staying involved. Real estate investing—especially long-distance—isn’t always passive, but when managed well, it can be powerful. Keep going. Delayed gratification is what makes this business work.

    McCaw Property Management4.4905 Reviews
  • Property Manager · Las Vegas · Member since 2024 · 19 posts · 9 votes
    1y

    Joshua—biggest issue here isn’t the tenant or even the plumber—it’s your PM's process (or lack of one). Emergencies are one thing, but $4,800 with zero heads-up? That’s a system breakdown.

    If this kind of bill can hit your inbox without approval, even after five years of “good performance,” it’s time to revisit your operating agreement—and possibly your manager. Emergencies shouldn’t mean open checkbooks.

  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
    1y

    The tenant didn't care about the cost, they only cared about speed - so they hired the first plumber that could get there. 

    They may have also had the work done on the weekend, which means overtime rates.

    What I'd do is shop the job to other plumbers to get 3 bids. 
    - This will be difficult to do now that the work is done. 
    - Suggest using the invoice to create Scope Of Work to send to plumbers for bids, so they don't have to visit the site.
    - One of the bids should be from your PMCs plumber!

    Once you have an understanding of what the cost should be, you can then decide how to proceed with the tenant. Be aware of the following and investigate:
    - Was this an actual emergency, or just an emergency in the tenant's opinion? How was their use of the property actually affected?
    - How much time did the tenant actually give the PMC to perform?
    - What does your lease state about emergency definitions & tenants doing repairs?
    - What do the local laws allow/require?
    - Theoretically, you or your PMC didn't hire the plumber, so you have no liability to pay them. They should go after the tenant for payment. You can use this to negotiate with them.
    - Be careful negotiating with the plumber, as they could put a lien on your property.
    - The tenant should be responsible for part of the cost, because they didn't follow the lease and probably didn't get 3 bids.
    - Depending on how much you charge to the tenant, they may refuse to pay, requiring eviction. Tenant will claim to judge that you are being unfair and embellish the truth with fears about the gas leak harming or killing them.

    Welcome to the world of proeprty management, where tenants always think they are right and landlords are just cheap rich people.

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