Property Management Question?

[flannagain]

I have recently hired a property management company in Dallas, Texas to handle my rental property. They told me that they could not lease it until certain repairs were made. They found a contractor that could do the work and had him contact me. The repairs will cost $4300 (half up front and the other half upon completion).

The next day, I did some research and found out the the individual that quoted the job (and will be performing the repairs) has the same name as the name on the email address used by my leasing agent. I'm not saying that I think he's my agent. I'm saying that he is directly affiliated as a owner of the management company.

I was never told this and wonder, isn't this a conflict of interest? Is this even legal? Also, my insurance company did an inspection on the home and they don't have any issues with any repairs. Why does the management company demand that I have these things done? It all seems very fishy and I'm desperate for some good legal advice.

Thanks.

[khalid]

No it is not a conflict and it is perfectly legal. Most property managers have a contractor or maintenance guy that works with their company.

It really depends on what the repairs are. What a management company deems as needed is very different that what an insurance company deems needed. The insurance company is only looking at safety issues, building codes, that everything works properly and things like that. The management is looking at cosmetic issues, and basic things tenants look to have or be done before they move in. For example: An insurance company would not care if there was small holes in the walls or something like that but a property manager would want that fixed.

If you do not trust your property manager that these things do indeed need to be done it is perfectly legal for you to seek a second opinion. The same goes for their contractor. You have no legal obligation to use the contractor that works with them. You have every right to demand a second bid from another contractor & to use them if their bid is lower.

EDIT: That is not unethical. Yes they should have told you but there is nothing wrong with it. It would only be unethical if they try to force you to use THAT contractor. There is nothing wrong with them recommending him so long as they allow you to choose another option.

You as the owner always have the right to insist on using a different contractor. Remember, these people work for you. They have to do what you want them to do AS long as your requests are not breaking any laws.

[albanwr26]

You need to remember that the management company works for you...not the other way around. Simply deny to have the repairs made or insist on having your own contractor do the repairs.

Sounds like the company YOU hired is trying to scam you.

[blaisdell]

If you want good legal advice contact a real estate attorney not Yahoo answers.

No it's not illegal for a management company to have a contractor on file, have you ever heard of the property brothers?

This way they have someone they know doing the work, however you are under NO obligation to use their contractor, there is nothing in your contract (read the fine print) that you have to use their contractor you are more than free to call another vendor to give you an estimate on the repairs.

Also your insurance company is not going to look for items in the house that need repairing what they are looking for is to make sure that the roof is in good condition and your house isn't a fire hazard. They aren't going to say something if the wall needs to be repaired or the deck for example.

I suggest you tell them that you're going to call a contractor and get an estimate yourself and will be in touch.

If you haven't signed anything and you're uncomfortable hire another company, you are not legally obligated to use their vendor to make repairs.