Management Agreement Between Owner/Property Manager

What is the name of your state? Alabama

OK, here is the situation. I own a house that is managed by a property management company in Alabama. I had a bad tenant who did a lot of damage and was evicted. The amount of damage was excessive and also left my house empty for about 2 months. The repair costs were taken out of the tenants deposit, however there are more damages than money. The management company contracted out all these repairs without notifying me of costs. Had I been aware of the amount of damages and cost I could have completed all of them myself for about 25% the expense. Who takes the hit on this? I pay them to manage and take care of my property and they didn't.

Here's my question, it they tell me I owe them money for the repairs they contracted, do I actually have to pay them more than what I have already lost?

Any advice is welcome.

Your contract?

Do you have a written agreement with the management company? What does it say about repair and maintenance costs?

mtnstyne said:

What is the name of your state? Alabama

OK, here is the situation. I own a house that is managed by a property management company in Alabama. I had a bad tenant who did a lot of damage and was evicted. The amount of damage was excessive and also left my house empty for about 2 months. The repair costs were taken out of the tenants deposit, however there are more damages than money. The management company contracted out all these repairs without notifying me of costs. Had I been aware of the amount of damages and cost I could have completed all of them myself for about 25% the expense. Who takes the hit on this? I pay them to manage and take care of my property and they didn't.

**A: over what dollar amount does it state in your contract that the mgt co. needs to get your approaval on?
*********

Here's my question, it they tell me I owe them money for the repairs they contracted, do I actually have to pay them more than what I have already lost?

**A: yes.
*********

Any advice is welcome.

Click to expand...

**A: yes, we know.

Thanks

I kind of figured that. I am looking at the management agreement now and it doesn't have a set figure. But I distinctly remember while interviewing the property manager that if it was more than the escrow account of $150 they would notify me for approval. I can assure you this agreement will not be renewed with this company once it expires.

Lesson learned on my first rental property, I will set the terms of management and not the company.

mtnstyne said:

I kind of figured that. I am looking at the management agreement now and it doesn't have a set figure. But I distinctly remember while interviewing the property manager that if it was more than the escrow account of $150 they would notify me for approval. I can assure you this agreement will not be renewed with this company once it expires.

Lesson learned on my first rental property, I will set the terms of management and not the company.

Click to expand...

**A: yes, you call the shots and make sure everything is in writing.

New information

I finally had a chance to talk to a property manager and thouroughly review my management agreement. There are two points that stick out that now make me wonder if I don't have cause to terminate our agreement.

1. It states under a paragraph titled:
"APPROVAL FOR EXCEPTIONAL MAINTENANCE EXPENSES

The expense to be incurred for any one itme of maintenance, alteration, refurbishing, or repair shall not exceed the sum of Two Hundred Dollars ($200.00) unless such expense is specifically authorized by Owner."

They are getting around this by itemizing every little item with a total of over $1,500 in repairs. One of the charges is exactly $200. However, 3 of the reciepts each are for over the $200 dollars. Can this be interpreted to say they violated this clause this with these three contracts even though each one is itemized to show individual items less than the $200 limit? (btw, all the work was done by their own maintenance company which is pretty shady in my book)

2. Under the TERMINATION paragraph it states:

"This agreement may be terminated by either owner or Agent, with or without cause, upon giving the party sixty (60) days written notice. Notwithstanding the foregoing, this Agreement may be terminated immediately upon written notification to the other party, and all obligations of the parties hereunder shall cease, upon the occurrence of a breach of agreement or excessive damage to the premises."

Would the damage in the amount of 2 months rent constitute excessive damage? (it does to my wallet)

Thanks again. What a freakin nightmare.

bump

yne]I finally had a chance to talk to a property manager and thouroughly review my management agreement. There are two points that stick out that now make me wonder if I don't have cause to terminate our agreement.

1. It states under a paragraph titled:
"APPROVAL FOR EXCEPTIONAL MAINTENANCE EXPENSES

The expense to be incurred for any one itme of maintenance, alteration, refurbishing, or repair shall not exceed the sum of Two Hundred Dollars ($200.00) unless such expense is specifically authorized by Owner."

They are getting around this by itemizing every little item with a total of over $1,500 in repairs. One of the charges is exactly $200. However, 3 of the reciepts each are for over the $200 dollars. Can this be interpreted to say they violated this clause this with these three contracts even though each one is itemized to show individual items less than the $200 limit? (btw, all the work was done by their own maintenance company which is pretty shady in my book)

2. Under the TERMINATION paragraph it states:

"This agreement may be terminated by either owner or Agent, with or without cause, upon giving the party sixty (60) days written notice. Notwithstanding the foregoing, this Agreement may be terminated immediately upon written notification to the other party, and all obligations of the parties hereunder shall cease, upon the occurrence of a breach of agreement or excessive damage to the premises."

Would the damage in the amount of 2 months rent constitute excessive damage? (it does to my wallet)

Thanks again. What a freakin nightmare.[/QUOTE]

**A: plain and simple they are in violation.

Still Developing.

I recieved a phone call today from the Real Estate Brokers assistant who owns the company that manages my property. I sent them off a very well organized and deliberate letter about my displeasure of how my property was handled under their management. I CC'd the owner. Anyway, they are having a meeting involving all the PM's with the Owner tomorrow in the morning to discuss my property.

Just thought I would update this incase anyone is following it for their own amusement.

I will post outcome of their meeting after I hear from them.

mtnstyne said:

I recieved a phone call today from the Real Estate Brokers assistant who owns the company that manages my property. I sent them off a very well organized and deliberate letter about my displeasure of how my property was handled under their management. I CC'd the owner. Anyway, they are having a meeting involving all the PM's with the Owner tomorrow in the morning to discuss my property.

Just thought I would update this incase anyone is following it for their own amusement.

I will post outcome of their meeting after I hear from them.

Click to expand...

**A: I may be amused when you post the outcome of the meeting.