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.