Repair Receipts (by Andrew [TX]) Aug 14, 2017 7:54 PM
Repair Receipts (by Andrew [TX]) Aug 14, 2017 8:00 PM
Repair Receipts (by Martin [CO]) Aug 14, 2017 8:02 PM
Repair Receipts (by Andrew [TX]) Aug 14, 2017 8:15 PM
Repair Receipts (by Martin [CO]) Aug 14, 2017 9:19 PM
Repair Receipts (by Robert J [CA]) Aug 15, 2017 3:25 AM
Repair Receipts (by Robert J [CA]) Aug 15, 2017 3:25 AM
Repair Receipts (by Vee [OH]) Aug 15, 2017 3:58 AM
Repair Receipts (by S i d [MO]) Aug 15, 2017 5:53 AM
Repair Receipts (by Andrew [TX]) Aug 15, 2017 6:09 AM
Repair Receipts (by S i d [MO]) Aug 15, 2017 8:02 AM
Repair Receipts (by Andrew [TX]) Aug 15, 2017 8:18 AM
Repair Receipts (by Ken [NY]) Aug 15, 2017 7:10 PM
Repair Receipts (by Andrew [TX]) Posted on: Aug 14, 2017 7:54 PM Message:
As a owner of an investment property that is managed by a property manager, do I have a right to request actual individual repair receipts for any payments made for any repairs or maintenance completed? This property is in Texas.
I currently receive a monthly expense invoice with itemize charges but I have a reasonable suspicion of the actual costs since it is not hard to create a monthly invoice with arbitrary charges with vague descriptions of work scope.
State Specific Question About: TEXAS (TX)
--76.204.xx.xxx |
Repair Receipts (by Andrew [TX]) Posted on: Aug 14, 2017 8:00 PM Message:
When the tenants moved out of my rental property Texas my property manager stated that the interior would have to be repainted and the carpet would need to be replaced because of damage by the tenants but not to worry all the costs would be covered by the tenants.. When I asked how much I would be responsible for at the end at the at the end of repairs and bringing the house up to code for adding a peephole, change door locks, deadbolt and utilities, I was told it would be close to 400. Come a month later after I receive my expense report the total was at 1000. I requested an explanation for the expenses and was told by my PM that he must have forgotten to charge the tenants for carpet cleaning $330(written in the tenants lease to cover) but the expenses were correct. The PM has not provided receipts or any detailed expense report for the breakdown of charges I am responsible for. When I asked why I was responsible for the carpet cleaning charges since he admitted fault and it was his mistake his response was 'You got a brand new home for $795'. I stated to the PM I only authorized modifications the tenants were obligated to cover the costs and bringing the property to code. Below is a breakdown of expenses and credits.
My question is what recourse do I have to hold my PM responsible for repairs that should have been charged back to the tenants? The cost is only 795 but I do not think I should have to cover expenses I am not responsible because of the sloppy accounting work by my PM. I have all our correspondence documented through text messages.
Should I contact the Texas Board of Realtors if he fails to cure his mistakes?
Is he liable for expenses since it appears it is his error to charge back repairs the tenants were responsible?
We can't update charges that were sent to the tenants because it is past 30 days from their moved out.
The Expense New Flooring/Repair 1,500 Repair-Make Ready 2,100 Carpet Cleaning 329 Utilities 212 Total 4,141
What the Tenant was already charged: Deposit 1,950. Paint/Drywall Repair 464. Carpet Replacement 550. Miscellaneous Expense 95. Pantry/Laundry Door 75. Total 3,134.
Leaving me to cover $1,007.04 after tenant covers what they were originally billed
--76.204.xx.xxx |
Repair Receipts (by Martin [CO]) Posted on: Aug 14, 2017 8:02 PM Message:
First, you have the specific rights that are outlined in the agreement with the PM. That should have specified that receipts be provided. You need the receipts for 2 reasons. 1) You want to validate each expense. Trust, but verify. 2) If the IRS comes calling, you will want receipts to prove the expenses. You HAVE to have receipts.
If your agreement does with the PM does not say that you can have receipts, talk to the PM and correct that now. If the PM says no, fire him today. No joke. If he hesitates to give you receipts, then he is hiding something. Fire him. Today. Get a new one, and put it in writing that you get receipts for every penny spent.
I have had PMs for some of my properties (in TX, coincidentally). Some of them were good, and I could trust. Others I did not trust, either because of their intentional dishonesty, or because they were so disorganized that they screwed things up unintentionally. The only way to keep them honest is to double check and verify every expenditure. And make regular visits to the homes yourself to do spot checks of claimed repairs or other conditions (ask if they have pets. See if that matches what your PM says, etc.)
Good luck. --174.29.xx.xxx |
Repair Receipts (by Andrew [TX]) Posted on: Aug 14, 2017 8:15 PM Message:
Thank you Martin. The PM agreement is in the standard Texas Realtor Owner-Property manager form (I think form TAR 2001). The contract between owner-landlord states
“Record Keeping: Broker will: (1) maintain accurate records related to the Property and retain such records for not less than 4 years; and remit, each month, the following items to Owner: (a) less authorized deductions; and (b) a statement of receipts, disbursements, and charges.”
It seems pretty vague in the language if I am entitled to any actual receipt for the specific work.
I am having a hard time accounting for why I would owe the full $1000 landlord expenses I am on the hook for. Especially after he admitted that he forgot to charge the tenants for the carpet cleaning.
Expense $
New Flooring/Repair $1,500
Repair-Make Ready $2,100
Carpet Cleaning $329
Utilities $212
Total $4,141
Tenant Credit $
Deposit $1,950.
Paint/Drywall Repair $464.
Carpet Replacement $550.
Miscellanous Expense $95.
Pantry/Laundry Door $75.
Total $3,134.
Owner pays $1007
Something just does not seem right if the PM stated before the work took place the Tenants were liable for re-paint, carpet replacement, miscellanous expenses and pantry/laundry door. And what the hell is a make ready expense for $2100? Very vague and easy for property manager to hide charges.
--76.204.xx.xxx |
Repair Receipts (by Martin [CO]) Posted on: Aug 14, 2017 9:19 PM Message:
I think you have every reason to be concerned. That does not mean that he is ripping you off. He may be perfectly legit and honest. But if he is, he should have no problem providing receipts.
The difficult part will be if "make ready" was work done by him, rather than hired out. In this case, there would be no receipts. Not sure how to handle that one, but I would want a signed statement from him stating that he worked X number of hours and charges Y dollars per hour. Again, if nothing else you would have that for the IRS goober down the road. I would also make it clear that you are hiring him to manage, not to clean, and that in the future you expect him to hire out.
With that said, unless there are significant damages, $4000 seems like a lot of money to turn a house around. I paid that much on several occasions, but it was when the tenant did significant damage.
Also, if they damaged it that much, THEY (the last tenants) should be paying all of it, including the make ready. If your lease is written correctly, they should be financially responsible to have the property back in the exact same condition as when they moved in, less normal wear and tear. If it is costing more to get it there, THEY should pay for it, and your PM should be getting the money from THEM.
Keep in mind all of this is without knowing all the details of what had to be fixed/cleaned, and what the tenants did, and agreed to.
But all of this certainly points to you needing receipts for everything. There are too many ways that the numbers could have been massaged. --174.29.xx.xxx |
Repair Receipts (by Robert J [CA]) Posted on: Aug 15, 2017 3:25 AM Message:
When I was a property manager and the contractor fixing up clients units to be re-rented, I had some clients that worried that I was going to charge them too much or make a profit. So I asked them to have a unit remodeled by an outside company, someone they had used before and trusted.
The first issue was interior painting. They claimed I had done a poor job and their painter/contractor did a better job for less, even though he charged $200 more for the job.
We compared the two jobs, here were the findings:
I had removed old wall paper and glue. Sanded walls, patched, primed and painted. I used three colors: walls, ceilings and wood trim/doors. My paint was of a quality paint and I used flat and enamel where necessary. I had also sanded and planed all doors so they will close after the new primer and paint were added. I also painted the windows exterior metal bars. I also glazed and painted the exterior of the windows, they were French and opened inwards.
My clients painting contractor used only one color of paint. He only primed were necessary and painted over the wall paper. He did not paint the exterior bars and they looked horrible from the inside. Also he didn't glaze the exterior of the windows or paint them. He did less and charged $200 more than I did. That painter bragged he was going to do a better job.
After 3 years we examined both apartments again. The unit I painted had only one crack in the ceiling. The unit that the other painter did had several issues and had to be re-painted.
SO my client so worried about me making a few bucks should have been more concerned about what they were getting for the total price. Quality of work and reliability of the workers/managers/contractors.
Yes, when I do a job like change a 100 gallon commercial water heater, 400 BTU's, costing over a thousand dollars, my clients want the receipt from the supply house. I'm glade to give it to them, but they complain why am I charging them more that I paid? Simple: I have to order it, pick it up and deliver it to the property. I paid wholesale rock bottom prices and have to charge a burden on all parts and get my time, mileage and costs...
If they want to order it themselves and have it delivered--that's okay. They end up paying maybe $300 to $500 more on their own... --47.156.xx.xx |
Repair Receipts (by Robert J [CA]) Posted on: Aug 15, 2017 3:25 AM Message:
When I was a property manager and the contractor fixing up clients units to be re-rented, I had some clients that worried that I was going to charge them too much or make a profit. So I asked them to have a unit remodeled by an outside company, someone they had used before and trusted.
The first issue was interior painting. They claimed I had done a poor job and their painter/contractor did a better job for less, even though he charged $200 more for the job.
We compared the two jobs, here were the findings:
I had removed old wall paper and glue. Sanded walls, patched, primed and painted. I used three colors: walls, ceilings and wood trim/doors. My paint was of a quality paint and I used flat and enamel where necessary. I had also sanded and planed all doors so they will close after the new primer and paint were added. I also painted the windows exterior metal bars. I also glazed and painted the exterior of the windows, they were French and opened inwards.
My clients painting contractor used only one color of paint. He only primed were necessary and painted over the wall paper. He did not paint the exterior bars and they looked horrible from the inside. Also he didn't glaze the exterior of the windows or paint them. He did less and charged $200 more than I did. That painter bragged he was going to do a better job.
After 3 years we examined both apartments again. The unit I painted had only one crack in the ceiling. The unit that the other painter did had several issues and had to be re-painted.
SO my client so worried about me making a few bucks should have been more concerned about what they were getting for the total price. Quality of work and reliability of the workers/managers/contractors.
Yes, when I do a job like change a 100 gallon commercial water heater, 400 BTU's, costing over a thousand dollars, my clients want the receipt from the supply house. I'm glade to give it to them, but they complain why am I charging them more that I paid? Simple: I have to order it, pick it up and deliver it to the property. I paid wholesale rock bottom prices and have to charge a burden on all parts and get my time, mileage and costs...
If they want to order it themselves and have it delivered--that's okay. They end up paying maybe $300 to $500 more on their own... --47.156.xx.xx |
Repair Receipts (by Vee [OH]) Posted on: Aug 15, 2017 3:58 AM Message:
Oh the nonsense of carpet, was it replaced or cleaned at the former tenant expense? The tenant or manager needs to get the correct story, nobody manages a place better than the Andrew in the mirror, or new manager time. --76.188.xxx.xx |
Repair Receipts (by S i d [MO]) Posted on: Aug 15, 2017 5:53 AM Message:
I've read the OP and responses...to me it all boils down to this line:
"When I asked why I was responsible for the carpet cleaning charges since he admitted fault and it was his mistake his response was 'You got a brand new home for $795'."
My take:
PM made a mistake. PM admitted to making mistake. PM is trying to cajole you into not caring about his mistake by telling you to be happy about his mistake costing you more than it would have if he'd have done his job correctly. You are not happy about it.
This is absurd. HE screws up, costing YOU money, and then has the GALL to tell you to be happy b/c the place is "new"? Fire him for incompetence and also for the messed up attitude. Next thing you know he'll be telling you to be happy the tenant destroyed the carpet because that gave him a chance to refinish your hardwood floors for "only a few thousands $$$."
I have a friend in my National Guard unit who manages over 180 properties. He tells me the bulk of their profits come from repairs/maintenance charges. Most PMs have a conflict of interest in this regard: they make LESS money for doing their jobs optimally which would save you money. --173.19.xx.xxx |
Repair Receipts (by Andrew [TX]) Posted on: Aug 15, 2017 6:09 AM Message:
Good point Vee! I think that he attempted to clean the carpets and then found out they were not cleanable and he to be replaced but I am going to check into that.
Sid: when made that through text my response was:
"You are asking me to be happy for expenses I did not agree to cover. " "Like me saying I don't have to cover commissions because I found you Blake who bought a house and is renting two houses through you, Myself buying two houses through you, and possibly more and then referring marina who going to buy a house through you."
His response: "Well I adjusted the numbers in your favor and even though they are not worded the way you want them to be they are. I charged the tenants for more than usual to make the numbers work. "
My response: "I don't see how that is the case. I have only agreed to expenses the tenants were liable to cover.
Please let's talk, so you can help me understand what I am paying for and how it is in my favor. "
His Response:"Well it is. I already told you what the numbers are. Not sure what you want to talk about & not sure what you don't understand. I am available Monday @ 8:30am if you wanna meet at the office. Thx"
Do I really I recourse other than firing him? Seems I should be able to at least get back $6/$700? Do I refer him to the Texas Commmission of Realitor's or do they really have no teeth?
--76.204.xx.xxx |
Repair Receipts (by S i d [MO]) Posted on: Aug 15, 2017 8:02 AM Message:
I'm saying $600-$700 is not worth the time it will take for you to get it.
Regulatory bodies like the TCR don't just take your word and crack the whip on someone. There will be forms to fill out and submit. Follow up questions to answer. Possibly a hearing of some sort you will have to attend and make statements. We're talking about an accusation that if proved true could revoke someone's license and end his/her career. I think it will take TOO MUCH TIME for you to achieve concrete results in your favor and the pay out is too low.
$600 the cost of 1 water heater, installed. Fire him and move on. --173.19.xx.xxx |
Repair Receipts (by Andrew [TX]) Posted on: Aug 15, 2017 8:18 AM Message:
I have everything documented through text messages, whatever value that might be. I agree $600 is not worth it, but I think the justice of making things right adds its value.
If I had to fire him, I might just manage the property myself. Right now it is hard to beat his 7 percent monthly commission I was grandfathered in on when he was a smaller outfit.
Doing a little research, it looks like a lot these property management companies in Texas share one thing... Lack transparency on repair charges and do not like it when owner occasionally gets involved because of the perceived micromanagement(accountability).
Tenant Cloud portal looks manageable for collecting rent, managing contractors, and advertising. Overall I am conflicted.
--76.204.xx.xxx |
Repair Receipts (by Ken [NY]) Posted on: Aug 15, 2017 7:10 PM Message:
If you are getting 7% which is less than his other clients he found a way to overcharge you to make up for what feels he has lost out on,plain and simple.He doesn't appreciate your business,he feels like you are ripping him off.I would fire him --24.25.xxx.xxx |
Reply:
|
|