Property Owner’s Rights with the Property Management Company

It is a common misconception among property owners that they have no control or rights over their property when working with a property management company. However, this is not accurate. One crucial aspect that should be included in all property management agreements is that repairs, with the exception of emergency situations, should have a cap that must be approved by the owner before being completed.

These repair caps can vary, with some as low as $200 and an average of around $400. This allows the owner to be aware of any expenses and prepared to allocate funds if necessary.

It is crucial to note that property management companies are required by law to provide invoices to the owner. It is essential for owners to review the difference between capital expenditures and operating expenses as this has a direct impact on the property’s salability and the owner’s tax returns.

In some cases, property management companies cannot provide invoices, which is a violation of the law and can be reported to the Arizona Department of Real Estate. Under Arizona law, property management firms are required to maintain financial records for at least three years and must be capable of producing these records in the event of an audit.

It is vital for owners to remember that their account with a property management company is not an open book. If they have any issues or concerns, they should contact their broker.

In conclusion, property owners should be aware of their rights and responsibilities when working with a property management company. Clear communication and documentation can help avoid any misunderstandings or issues.

Please remember that not only am I your Broker but I do not disappear after your closing.  If you have an issue, please call or email me.

Have a great day,

Linda

602-688-9279