I’ve personally never faced an invoice over $10k (massive turnover expense plus took the opportunity to replace all appliance and install grainier to raise rents.)

IMO management companies are like factoring invoices, IFKYK.  

They're going to have trip charges built in the repairs invoices. 

For tax purposes, what matters is the allocation of income and expenses on the year-end Schedule K-1, not who paid each individual invoice during the project.

I explained my viewpoint by email and asked them to drop the $2,000 invoice, they threatened legal action through their agency.

Put it in voice mode.

@Ryan Knoetze As far as I know, these are the areas (in red) https://cdn2-img.pressreader.c...I just read some news saying they are now allowing new AL licenses BUT only for 5 years, after that they will re-evaluate them and decide wether you can keep them or not.Also, regarding taxes, if you apply for an AL license you should declare your rental income under category B, this type of activity receives a special treatment under the IRS and tax is calculated on sales, in other words you are only taxable on 15% or 35% of your invoiced income, depending on the way your business is structured.Capital gains are not charged if the property is more than 30 years and you refurbished it or if it is located on an urban rehabilitation zone.

They actually want invoices, receipts and checks for as documentation.http://hcidla.lacity.org/blog/what-just-and-reasonable-rent-increaseI have a few questions myself:How would you find documentation to establish the baseline for 1977?

Things were going bad from day one however we wouldn't be aware of it until late 2017.It started when 1 of our properties got burned and when started an insurance claim learned that the policy the management company has purchased for us wasn't covering the cost of property purchase and their savings of $20/month cost us loss of thousands of dollars.That was the start of our awakening and we started checking all that was taking place and we have questioned all the different bills and reports that were provided to us, during that we learned that 2nd of our properties was abounded by the tenant and the months late rent payment wasn't questioned by the management company, not only that but thieves had broken in to steal all appliances and vanities, created damage and leave the property completey vandalized, a squatter had taken over the property and we had to go thru eviction process.Needless to say we have dropped Mousa and his so called management team (Omar and Wanda) and hired another company to take over and conduct a full due diligence on our properties which helped us to find out that on a 3rd property the management company had failed to fill out correct paper work and the tenant was not paying her utility bills for months and that mistake of paper work forced us to settle thousand of dollars past due bills with the city, that's on top of the fact the tenant was way past due on her rent, this property was so badly maintained despite the fact we have paid thousands of dollars to Mousa and his team for various repairs they have reported and invoiced for.As you can imagine the poor management of this company had caused us nothing but losses that are at this point estimated in tens of thousands of dollars.It is clearly our responsibility of not checking this company in details before engaging in business with them, however it is this company lack of responsibility and management that caused our losses.Be aware and check them thoroughly before engaging

Difficulties with Property Managers charging high fees, not sending invoice of repairs to investor (to me a red flag - it's her property not the PMs), high trip fees for repairs, not communicating with investors.