All Forum Posts by: Laticia Braxton

Good morning Ryan.  

They are charging you for the time it takes to schedule the repairs with the contractor and tenant, (hopefully) follow-up with the tenant to make sure the work was done satisfactorily and also their time for paying the invoice/accounting.  In my opinion, those charges should be included in their management fee, but each PM is different.  

I would advise you to require landlord approval for any repairs over a certain dollar amount, so you are not hit with any big surprises. I actually had that written into my management contracts and my landlord clients appreciated it.  

You should also really decide if you are okay with paying the 10% before signing the management agreement or you may feel some heartburn every time a repair is needed.  Hope this helps and have a fantastic day! 

@Bryan Zbikowski, that is correct!

@Jim Shonts I could not have said it better! I am now unloading all of my C class properties for those very reasons and I will probably never take on any others.  Way too much of a headache for very little profit. 

You need to ask for references and verify those references to make sure they actually own the property.  You should be asking the PM for information regarding how long they have been managing property, ask about the types of property they manage, ask what they enjoy about what they do, ask how they handle difficult tenants, etc.  

You should start interviewing managers while you're still searching because they could be a great resource for you with regard to various areas. They manage property so they know about the demographic, challenges, etc. in those areas.

Best of luck to you!

Hello Jordan.  It could work depending upon the tenant but I would recommend you have someone else do it, to ensure accuracy.  

A few things...

1. Definitely reach out to them directly to get answers.

2. Check your PM contract to see if the contract allowed the PM to mark up your repairs (that could be part of the total cost).

3. For $1,000 you probably could have gotten a brand new window installed (again not sure of the size but for a residential window repair that seems ridiculous)

4. A screen does not prevent someone from falling out of a window.  If the window was broken, the PM should have notified you immediately upon their notification by the tenant, advised the tenant to keep the window closed until the repair was done and should have then discussed pricing with you and gotten your approval.  

I am not an attorney (disclaimer) but if your contract states they must have your consent to spend anything over $500 and they failed to get your consent, I can't see how a judge would not see things in your favor.  

Assuming your window is not of extraordinary size, that price is outrageous!  Additionally, I can't understand how a screen replacement could ever be an emergency.  You should ask for a copy of the vendor's invoice so you can see if the charge is legitimate.  Call the vendor directly and ask them to explain to you why a single window screen costs $1,000.

The way the owner addressed your concerns is highly unprofessional and it's clear from what you've said that she isn't all that interested in retaining your business.  I would suggest you send written notice to terminate the contract based upon their negligence for approving that repair without your consent.  If she tries to threaten you or fight back, cite the approval clause in your agreement and ask if she wants to go to court over it.  Also, make sure you get everything in writing - no phone calls so you have documentation if you do have to proceed with litigation.  My guess is she will back down once she realizes you refuse to be taken advantage of anymore.  Best of luck to you!

Laticia

As a licensed Realtor and owner of a property management company also, I would advise you to ask for current owner references and be sure vet the manager thoroughly.  You specifically need to ask about the amount of experience they have.  There are a LOT of management companies popping up in the area and unfortunately, a lot of them were formed by people with little to no experience managing real property.  As an investor, the last thing you need is to place your investment in the hands of someone who is simply winging it...

@James Trout Good morning James!  I am also in Harford County and welcome!  Let me know if you would like to chat...

Laticia

My pleasure!