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03/28/2012 17:42:06
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Subject: AMO Question regarding an Owner request
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Steven Hussey
Joined: 03/28/2012 17:33:39
Messages: 2
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Hi,
We are an AMO and one of my clients had large Property Tax refunds given back to him in 2011 for the years 2009-2011. We re-ran the CAMS for both 2009 and 2010 and a few of the Tenant's are owed a decent amount of money due to the Taxes being lowered for each of those calendar years. However, my client has asked us not to let the Tenants know about the refunds in 2009 & 2010 and not reimburse. I have a real issue with this request, but before I respond to my client, I wonder if anyone has experienced anything similar. Also, thoughts on whether as an AMO, we can even adhere to the Owner's request.
Thanks for any feedback on this matter.
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03/30/2012 11:12:29
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Subject: Re:AMO Question regarding an Owner request
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Lee Whitman
Joined: 04/25/2011 08:53:07
Messages: 20
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Are the tenants that are due the money current tenants or former tenants no longer at the property?
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04/02/2012 14:32:18
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Subject: Re:AMO Question regarding an Owner request
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Steven Hussey
Joined: 03/28/2012 17:33:39
Messages: 2
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Hi Lee,
Thank you for the response. We have both former Tenant's and some that are still in the building that are owed money.
Steve
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04/04/2012 10:17:34
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Subject: Re:AMO Question regarding an Owner request
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Lee Whitman
Joined: 04/25/2011 08:53:07
Messages: 20
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Steve, my advice: first check your leases to see if there is any specific language about tax refunds. You should always recommend complying with the lease terms. Typically you either go back and recalculate the affected years, and refund those tenants of record, or you book the refund in the year you receive it and the tenants in THAT year get the benefit. The latter is usually what my owners want done.
Then you make a recommendation to your client to proceed in that manner. If they tell you not to book it at all for pass-thru purposes, make sure they give that to you in writing so you have the documentation that shows the insisted you do something that you are not recommending.
I think that is all that we are "required" to do ethically. The next decision is whether you want to keep working for a client that insists on operating in that manner. That will be your company's call.
Great question though for people to consider. There are a lot of owners out there who regularly put us in positions like this. Best of Luck!
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05/11/2012 19:40:27
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Subject: Re:AMO Question regarding an Owner request
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Lynne Miller
Joined: 07/06/2011 16:30:04
Messages: 5
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In addition to Lee's comments, you should also mention to your client that should a tenant audit the 2011 year, they will see the tax refund for past years, which will raise a red flag and possibly cause that tenant to audit other years. Also, tenants do talk to each other so the tenant that audits is likely to mention the past years' refund to other tenants. I agree that what your client is asking you to do is unethical. If you cannot convince the client to handle this issue appropriately, you might want to consider dropping the client, if at all possible.
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08/27/2012 16:39:14
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Subject: Re:AMO Question regarding an Owner request
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Jeffrey Laass
Joined: 09/15/2008 14:00:58
Messages: 9
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Don't go at this alone. Lean on your supervisor too!
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