Prepayment to Vendor

Another significant question deals with prepayment to the vendor. By paying dollars upfront, the property manager is increasing the risks involved in the transaction. Most often the property manager has a relationship with the vendor, thus prepayment is unnecessary. On a larger job over $5,000 I will pay half of the bill when 75 percent of the work is completed. That provides the vendor with some needed working capital and still protects the property manager's position. If your contractor demands dollars before the work is to start--find another contractor.

Peter Meer is President/Broker of Meer & Company, Inc., 303-322-1550, which manages 150 single family homes and properties in Denver, Colorado. He holds the Master Property Manager (MPM) designation and the firm holds the Certified Residential Management Company (CRMC) designation from the National Association of Residential Property Managers (NARPM). To learn more about Peter's Landlord solutions visit Meer and Company website at www.meerandco.com.

Wait For Check to Clear

Here is an important point to remember. Do not undertake the work until the owner has sent you the necessary funds. It is difficult to ask your client for certified funds, as they may view such a request as questioning their honesty. Thus, accepting their personal check is almost a necessity.

Before undertaking any work you should have the check in your hands. The "check is in the mail" is never a safe bet. After receiving the check, protect yourself by waiting long enough for the check to clear. Remember that even though the owner signed the bid, you are here and your client may be thousands of miles away. Your vendor will look to you if payment is not made.

Peter Meer is President/Broker of Meer & Company, Inc., 303-322-1550, which manages 150 single family homes and properties in Denver, Colorado. He holds the Master Property Manager (MPM) designation and the firm holds the Certified Residential Management Company (CRMC) designation from the National Association of Residential Property Managers (NARPM). To learn more about Peter's Landlord solutions visit Meer and Company website at www.meerandco.com.

Formal Bids

All formal bids should be in writing. Even with trusted long time vendors, do not use a verbal agreement. With a written bid, the details of the job, the start and completion date, and the terms of payment are all clearly stated. If the property manager is signing the bid, he/she should do so clearly indicating that they are acting as an agent for the owner. A safer procedure is to have the property owner sign the bid. 

Peter Meer is President/Broker of Meer & Company, Inc., 303-322-1550, which manages 150 single family homes and properties in Denver, Colorado. He holds the Master Property Manager (MPM) designation and the firm holds the Certified Residential Management Company (CRMC) designation from the National Association of Residential Property Managers (NARPM). To learn more about Peter's Landlord solutions visit Meer and Company website at www.meerandco.com.