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Old 08-11-2011, 07:45 AM
 
8,411 posts, read 7,420,628 times
Reputation: 6409

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This my first year renting out my house. I have a good tenant so far but my PM is very disorganized. They do not send monthly statements. They pay rent by direct deposit to me which is good but every other month they are taking $70 out here and $90 out there. I am not made aware of any problems until my direct deposit comes up short. I have emailed and ask them to notified me of any charges before they are charged. They have plenty of time because rent is paid between 1st-5th. They don't send deposit to me out until 10th.

For example, my house need a new dishwasher and I ordered the dishwasher. I called PM and let them know a week in advance that Home Depot would be coming out to install. Well, the PM called me and told me that she gave the key to the tenant's wife and could not get into the property. So PM told me to cancel the install and she would have it installed. The following month my deposit was short $60 and I emailed and asked her why. PM said she had to hire a locksmith because tenant's wife was out of state and she could not get the key. I told her I will not be responsible for a locksmith because PM didn't have a extra key.

During that time, the dishwasher was not installed but of course I thought she was paying to get it installed since she could not be there. I received another short deposit and had to ask why. PM explained she had to pay her plumber $70 to install. I explained to PM that they should explain to me what fees they will charge beforehand because I know repairman in the area that would charge $50 plus I had free install from Home Depot but I thought PM knew someone that would do it since it was their error for Home Depot not installing it when I scheduled it.

Finally, they only send me statements when I ask them why I was charged this or that. Is this normal practice from your PM? Should I be looking for a new PM or filing a complaint? I am fed up with their lack of communication.
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Old 08-11-2011, 09:43 AM
 
Location: Boise, ID
8,046 posts, read 28,472,904 times
Reputation: 9470
Most of what you say, other than the fact that you are having to ask for statements, sounds normal. Here is how my office does it.

Between the 1st and the 5th, rent is paid.

On the 8th and 9th we pay all the bills for the month (subcontractors are used to being paid on the 10th, so they often don't send bills until around the 5th)

On the 10th, we pay all the owners we manage for, and take the deposits to 10 different banks around town.

When I get back from that, or sometimes on the 11th, depending on how the day went, I email all 40 owners we manage for and give them the breakdown of their monthly deposit, including copies of any deductions.

We have right in our management agreement that we are authorized to do minor preventative maintenance or ongoing type needed repairs under $250 without prior authorization. Most of these bills would happen during vacancies, like utility bills, lightbulbs, furnace filters, new keys/locks, etc that might not be a tenant expense. But sometimes, even though a tenant is maintaining the yard, it might need a fertilizer treatment, or some bark, or the sprinklers may have a gusher.

Or if an appliance is broken, it is going to have to be fixed, and if you have to have the appliance guys make one trip to diagnose, but not fix while they have everything taken apart, and have to make a special trip back, they are going to charge extra for the extra trip, so it is going to cost you more. So why make the landlord jump through the extra hoops, why not just let them get the repair done, assuming the repair is reasonable.

We do have one or two owners who like to do all the handiman stuff themselves, but in order to do that, you have to be available and responsive. Meaning you have to live in town, be available at the hours the tenant is available, and either answer your phone or return messages promptly. We've given properties back to owners before because of them being uncooperative on repairs.

Really it comes down to this. Why hire a property management company if you aren't going to let them manage the property?

HOWEVER, with all of that said, I COMPLETELY agree that they need to be sending you notice of deductions. Like I said, every single owner we manage for gets an email from me every month that says something like
Quote:
Rent deposited in your account this afternoon as follows

$900 rent
<$50 management fee>
<$75.62 plumbing repair> - see attached invoice

Total deposit of $774.38
And then I attach the invoice to the email. That way, if they disagree, which does happen occasionally, they can let me know.

Also, I totally agree that a locksmith because of a landlord mistake is a landlord expense.

I'm not following the story very well on the installation though. How did the dishwasher get into the house? Did Home Depot deliver it but not hook it up? If so, that is their fault, they should know what they are being paid to do. Or did it go to the PM's office and they had to schedule someone and have it delivered and installed? I can't say whether that charge was legit or not from the information given.

So TLDR version: Receiving rent on the 10th from a PM is pretty normal, imo. Having small items just taken care of and billed to you is part of why you hired a property manager, so let them do their job on legit stuff. But call them out on it when it is not legit, which some of yours were not.

Last edited by Lacerta; 08-11-2011 at 10:04 AM..
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Old 08-11-2011, 10:27 AM
 
Location: Maine
2,272 posts, read 6,668,304 times
Reputation: 2563
We receive our portion of the rent from our house on about the 17th of the month, along with a statement, even if there were no extra charges. You need the statements for tax purposes. I would demand a monthly statement regardless of whether there are additional charges beyond their fee.

Oh, and we have receive statements with deductions for small repairs, but he calls me if it is a larger cost, like the dishwasher we had to replace. He went out and bought it and had one of his guys install it.
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Old 08-11-2011, 12:50 PM
 
Location: southwest TN
8,568 posts, read 18,106,143 times
Reputation: 16702
As a LL, I would be very upset at being charged a locksmith fee when the PMC made the error in giving the ONLY key to the tenant. I would expect to receive a "new key made" charge, but not a locksmith charge.

As to the plumber issue, if I read correctly, it is the PMC's error in not having a key or being available to let in Home Depot to install the DW or to arrange a mutually convenient time. Sorry, again the PMC needs to eat this one also.

Our agreement with our PMC is that they do repairs up to $150 and call me for anything unknown - such as "A/C not working" - which could mean a full replacement to a $10 part + service. So they call me. We are available by phone AND e-mail within 24 hrs. If it's an emergency - running water - FIX IT! call me after/during, but handle it. That's why we have a PMC. Our statements are mailed out within 5 days of the beginning of the NEXT month. And it's a full statement but our checks come a full month after the tenant has paid.
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Old 08-11-2011, 01:20 PM
 
8,411 posts, read 7,420,628 times
Reputation: 6409
Ok it makes sense now. I just want to make sure they are charging me and not trying to fatten their pockets. My tenant has been deployed for the last 9 months so they really haven't had to do much. But I assumed they are suppose to contact me by email or phone to let me know "hey this broke, the repair cost will be $xx.xx. The charges will be deducted on xx date.
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