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Rental Property Problem - who is responsible?

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Lesley771

Junior Member
What is the name of your state (only U.S. law)? Pennsylvania

My husband and I own a rental property in Pennsylvania. We have a property management company
handling the rent collection, maintenance and repairs.

Last summer the property management company contacted my husband to have the carpeting replaced
in the rental house. He told them to wait a few months. A month later he was presented with a bill that
the carpeting was replaced. We knew the carpeting would have to be replaced eventually so we accepted the bill.

The property management company hired a general contractor to install the carpeting. He in turn hired a carpeting and flooring place to install the carpeting. I have just recently obtained receipts from the carpeting place. The carpeting place charged $3,497 for carpet installation, however, the contractor charged, through our property management company and deducted from our rental fees, $4,450. In questioning the general contractor, he said the $953 differential was his "markup".

The problem is, the carpeting installation was less than adequate. The tenants have been complaining to the property management company since the installations, which I have recently been made aware of. The carpet has long pulls and snags in it at every seam and is fraying and pulling out at the thresholds. The stair risers are also all frayed and the edges of steps are all coming out. The tenant complains that when she vacuums carpet strands come out and get caught up in her vacuum. I did view the carpeting and have seen pictures of the vacuum with carpet pulled and stuck in vacuum. I have contacted the general contractor and the carpet company, more then several times, but I'm not finding any resolution from either. The entire carpeting needs to be replaced.

I feel, at this point, the only course I can take is to go to small claims.

My question is, who should I file against. I'm not sure if I should file against the property management, who hired the general contractor, the general contractor who was hired by the property management, or the carpet place that installed the carpeting. However, if I file against the carpet place directly, whom I did not hire, I would not be able to recoup the $953 charged by the general contractor for his markup.

I'm hoping someone can help me with this issue as I'm not sure what to do :)
Thanks
 


Zigner

Senior Member, Non-Attorney
The property management company was/is your agent. What did they do wrong?

You need to sue the contractor. You may also wish to include the installer. For further guidance, speak with a local attorney. You don't need to retain one, just buy a little bit of their time. Note that the cost to do so may not be compensable.
 

Lesley771

Junior Member
The property management company was/is your agent. What did they do wrong?

You need to sue the contractor. You may also wish to include the installer. For further guidance, speak with a local attorney. You don't need to retain one, just buy a little bit of their time. Note that the cost to do so may not be compensable.
Thanks for your insight :)

"What did they do wrong?"
I am questioning why my property management hired a general contractor to replace carpeting. I would think they would go directly to a carpet place. There have been other instances with them as well. When toilet was leaking they also had general contractor "fix" toilet, instead of hiring a plumber. Toilet was still leaking and I had my plumber go over and fix. So I'm not sure if property is being managed properly. Also just come to find out they have not done inspection of property in years. I've just started handling our rental properties, husband used to handle all of this, as of Jan. this year so I'm not sure what is norm for having property management company. Learning as I go I suppose :)

Okay, thanks. I wasn't sure if I could file against the contractor as I did not personally hire him. And...I didn't know I could list both contractor and carpet place. Thanks for your help!!...I have to replace all the carpeting so if I am able to get even a portion back it will help greatly. I will call around to local attorneys today and find out how much they would charge for their time - thank you so much for the suggestion.
 

LdiJ

Senior Member
The property management company was/is your agent. What did they do wrong?

You need to sue the contractor. You may also wish to include the installer. For further guidance, speak with a local attorney. You don't need to retain one, just buy a little bit of their time. Note that the cost to do so may not be compensable.
I think that the property manager needs to be included as well. What they charged was steep and only really cheap carpeting runs and snags.
 

Lesley771

Junior Member
I think that the property manager needs to be included as well. What they charged was steep and only really cheap carpeting runs and snags.
Thanks LdiJ,
It's an end unit of town homes so there is not that much square footage, so I thought at the price that
was paid, it was good carpeting, obviously not :) Having another carpet company (of my choice, not the contractors) go out next week to measure
and give me estimates.

I am questioning the choices my property management company makes and their liability in the matter :)
 

Zigner

Senior Member, Non-Attorney
I think that the property manager needs to be included as well. What they charged was steep and only really cheap carpeting runs and snags.
Depending on the agreement, the property manager may be able to charge his/her legal fees back to the OP. In essence, the OP would be paying to defend against the lawsuit he is bringing.
 

Lesley771

Junior Member
Depending on the agreement, the property manager may be able to charge his/her legal fees back to the OP. In essence, the OP would be paying to defend against the lawsuit he is bringing.
What I'm getting from that point is I should take a copy of the contract between the property management
and my husband to the attorney I go see :) Thanks for bringing up that point
 

adjusterjack

Senior Member
Your property manager is a crook, most likely getting a nice kickback from his contractor but you'll never be able to prove it.

I suggest you fire him and manage your own property.

And if you aren't capable of doing that, sell it, or you will continue to get bled dry.
 

Lesley771

Junior Member
Your property manager is a crook, most likely getting a nice kickback from his contractor but you'll never be able to prove it.

I suggest you fire him and manage your own property.

And if you aren't capable of doing that, sell it, or you will continue to get bled dry.
Yes, from all the things I've been finding out I'm starting to think that. Since taking control of the rentals we have I have now
implemented some changes and will be sending my personal contractor, plumber, electrician to handle any repairs, had them for years and
all trustworthy and honest. Also researching other property management companies for rent collection. Thanks for the suggestions.
 

latigo

Senior Member
Thanks LdiJ, (?)
It's an end unit of town homes so there is not that much square footage, so I thought at the price that
was paid, it was good carpeting, obviously not :) Having another carpet company (of my choice, not the contractors) go out next week to measure
and give me estimates.

I am questioning the choices my property management company makes and their liability in the matter :)
You need to sue the contractor and the subcontractor. But you DO NOT sue your property management agent because of what you believe to be poor choices or errors in judgment illustrating that you made an error in judgment by engaging the agent.

There is a Latin phrase that has meaning here which is "respondeat superior"; viz. the master/principal must take responsibility for the actions of its servant/agent. Suggesting that you'd be suing yourself. So, unless you could prove collusion its a dumb idea. Double dumb idea.

Besides doing so you would risk incurring judicial sanctions, including paying the agent's legal costs! Not to mention that the very idea of it would be a distraction from the cause of action against the real bad guys!
 
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