Property Management

In Kentucky, a property manager is authorized by the management agreement to spend up to $500 on repairs without owner approval. The HVAC breaks down and costs $1,800 to repair. The manager should:

AComplete the repair and pay for it from management fees
BObtain owner approval before authorizing the repair since it exceeds the authorized limit✓ Correct
CRefuse to authorize the repair
DRequest KREC guidance

Explanation

The management agreement limits the manager's authority to $500 per repair. Expenditures exceeding this limit require owner approval before the manager can commit to the work.

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