Did you know that Empire denies over 10% of work order claims submitted by tenants? If we find that the work order is cosmetic in nature, or has no impact on functionality to the home, then we go ahead and deny the work order.
What we do is we deny it. We let the resident know that we’re denying this work order because legally we do not have to take care of this work order because it doesn’t have any impact on functionality of the home. It’s cosmetic in nature. But we then submit it to you, the owner, and you determine if you’d like to go ahead and solve the problems, or take care of the cosmetic work order. We have some owners that want to go ahead and take care of everything. That’s their prerogative and that’s fine. We have some owners that only want to take care of the stuff that’s a necessity and that’s fine too.
As a property manager, we have a delicate balance. If we don’t fix a lot of items for the resident, they may not renew their lease. As owners, when they don’t renew the lease, you have a make-ready, you have a vacancy, and it’ll cost you a lot of money. But we also don’t want to continue handling frivolous work orders where a resident might put a work order every month over something that’s very frivolous, cosmetic or has no impact on functionality.
What we do is we inform you to determine from you the owner. “Hey, Mr. Owner. We have this. We denied it. But we think that you should handle this.” Or “Mr. Owner, we denied this and we don’t think you should handle this. If it comes out during our assessment on month nine of the lease, then we’ll take care of it at that point.”
The reason why we do that during the assessment is because on month ten, we send the lease renewal. It’s kind of what have you done for me lately. The resident’s going to remember that a few weeks ago, they just took care of all these issues; whereas if we take care of them at month two of the lease, they don’t remember it at month nine or month ten of the lease.
We want to make sure that we take care of the tenant, but most importantly, we want to make sure that we’re not fixing issues that really do not need to be fixed. Our goal is to be your partner, to take care of your client, but also to make sure that you’re not spending frivolous money as well. It allows you to take control and determine if you want to handle some of these work orders yourself. But just know that we have your back. We do deny work orders that do not need to be done legally or have any impact or functionality on the home.
Thank you for being our partner.
Pete Neubig, Co-founder and CEO of Empire Industries Property Management