Get 2 months of free community web site hosting from Community123.com!
Friday, December 06, 2019
Get 2 months of free community web site hosting from Community123.com!
Only members have access to all features.
Click here to join HOATalk for Free! Members click here to login and access all features.
Subject: Property Manager and Handyman
Prev Next
Please login to post a reply (click Member Login on the menu).
Author Messages
DeborahT5
(California)

Posts:3


11/25/2019 4:55 AM  
Property Manager and Handyman are an independent businesses, however:
• Both of their invoices look the same
• The physical office address listed on invoices are the same
• Office phone number is the same on both invoices

Most, if not all of the Handyman's invoices:
• Invoice number matches the check number.
• Invoice date matches the date of the check (some invoices proceed check date…what!)
• Most of the time the check is cashed at the bank on the same date the check was written
• A lot of times description of work on Handyman's invoices are vague without the location of repair
• Never an approval instrument or not recorded on minutes (this is common in documentation so I implemented a PO system)

As a newly elected Board Member I was going through the files, I found that the Handyman has been doing a lot of different work that requires a California State contractor’s license like major concrete work, design-build a trash trellis, significant repair to balconies, plumbing, welding, fencing, stucco, drywall, replacing doors,and even termite abatement. Plus this Handyman was providing work for owners while Property Manager paid the Handyman from HOA Operating Account and not charging back to Homeowners.

Does this sounds like possible collusion to anyone else?
GeorgeS21
(Florida)

Posts:1469


11/25/2019 6:40 AM  
Perhaps. A fine toothed review of the accounts and invoices, etc, should be able to determine.

The second point re licensing is something you will need to decide on the Board ... how carefully you hew to those requirements you noted will certainly affect the cost of the repairs, etc.
AugustinD


Posts:2045


11/25/2019 7:32 AM  
Posted By DeborahT5 on 11/25/2019 4:55 AM
Property Manager and Handyman are an independent businesses,


I think not.

A former HOA of mine was managed by a company that was way cozy with its largest contract, the landscaper. Landscaping was for the front yards of about 1000 homes, so it was a few hundred thousand dollars per year. The management company was eventually terminated but kept trying to win back the HOA's business. It never did. Around 2010, the management company was charged with embezzlement via mixing funds from numerous HOAs in one account, lacking proper accountability for funds et cetera.

The appearance is that of impropriety. Where there is smoke there's fire. I think I would favor letting your management company's contract expire and not renewing. It's guaranteed your management company will be charming, will dissemble about what is "professionally proper," and try to keep its contract.
NpS
(Pennsylvania)

Posts:3910


11/25/2019 7:48 AM  
High risk of fraudulent behavior.

One of the best ways to avoid fraud is separation of responsibility.

If one person, without any oversight, can:
- Authorize payment; and
- Issue checks.
that would be enough to raise a red flag.

Your situation is a lot worse.

How much money has Handyman been paid in the last year? What's your total budget?

Sikubali jukumu. Read all posts at your own risk.
DeborahT5
(California)

Posts:3


11/25/2019 7:52 AM  
You're right, a lot of this Handyman's work had or still has to be re-repair. Costs to re-repair his substandard work is costing double or triple of the original repairs. Thank you for your reply
GeorgeS21
(Florida)

Posts:1469


11/25/2019 8:00 AM  
Ah, OP added substandard repair!
DeborahT5
(California)

Posts:3


11/25/2019 8:15 AM  
We are a small HOA of 73 units. In 2018 we paid him $9,000. In 2017 we paid him $54,000. This is when he provided major concrete work which is crumbling as we speak. This year has been considerable less because I've been proactive in repairs and hiring only licensed contractors. I've been the pool expert, Fire Sprinkler expert, Landscape liaison and general maintenance person, hiring only licensed contractors but I feel like I'm doing Management's job
AugustinD


Posts:2045


11/25/2019 8:23 AM  
Deborah, don't your governing documents require licensed, bonded contractors (even handymen)?

Does the contract with the property manager require him/her to do the hiring of licensed contractors?

If a board majority agrees, perhaps the board should sit down with the manager and set him/her straight on his/her duties. This would perhaps include not hiring unlicensed, unbonded contractors.
NpS
(Pennsylvania)

Posts:3910


11/25/2019 8:55 AM  
How easy would it be to hire a new PM?

Why did the other BOD members let this happen?

Sikubali jukumu. Read all posts at your own risk.
LetA
(Nevada)

Posts:833


11/25/2019 9:34 AM  
I'm with NpS

MarkW18
(Florida)

Posts:254


11/25/2019 10:34 AM  
Is there anyone on the Board that has been authorizing the work and also authorizing the invoice for payment. Has anyone on the Board been reviewing the financials on a monthly basis, as I believe is now a California statue?
Please login to post a reply (click Member Login on the menu).
Forums > Homeowner Association > HOA Discussions > Property Manager and Handyman



Get 2 months of free community web site hosting from Community123.com!



News Articles Provided by: Community Associations Network
News, articles and blogs about condos/HOA's

Only members have access to all features.
Click here to join HOATalk for Free! Members click here to login and access all features.







General Legal Notice:  The content of forum messages are from the posting member and have not been reviewed nor endorsed by HOATalk.com.  Messages posted by HOATalk or other members are for informational purposes only, are not legal or professional advice and do not constitute an attorney-client relationship.  Readers should not act upon this information without seeking professional counsel.  HOATalk is not a licensed attorney, CPA, tax advisor, financial advisor or any other licensed professional.  HOATalk accepts ads from sponsors but does not verify sponsor qualifications nor endorse/guarantee any sponsor's product or service.
HindmanSanchez Legal Notice:  (For messages posted by HindmanSanchez) This message has been prepared by HindmanSanchez for informational purposes only and does not constitute legal advice. This information is not intended to create, and receipt of it does not constitute an attorney-client relationship. Members of HOATalk.com should not act on this information without seeking professional counsel. Please do not send us confidential information unless you speak with one of our attorneys and get authorization to send that information to us. If you wish to initiate possible representation, please contact an attorney in our firm. Our attorneys are licensed to practice law in the state of Colorado only.

Legal Notice For Messages Posted by Sponsoring Attorneys: This message has been prepared by the sponsoring attorney for informational purposes only and does not constitute legal advice. This information is not intended to create, and receipt of it does not constitute an attorney-client relationship. Readers of HOATalk.com should not act on this information without seeking professional counsel. Please do not send any sponsoring attorney confidential information unless you speak with the sponsoring attorney or an attorney from the sponsoring attorney’s firm and get authorization to send that information to them. If you wish to initiate possible representation, please contact an attorney in the firm of the sponsoring attorney. Sponsoring attorneys that post messages here are licensed to practice law in a specific state or states as indicated in their message signature or sponsor’s profile page. (NOTE: A ‘sponsoring attorney’ is an attorney that is a HOATalk.com official sponsor and is identified as such in the posted message or on our sponsor page.)

Copyright HOA Talk.com, A Service of Community123 LLC ( Homeowners Association Discussions )   Terms Of Use  Privacy Statement