The $400 approval cap I negotiated cost about $6,800 on one supply line
I do the paperwork for a family LLC that owns a nine unit brick walk-up in an inner-ring suburb, and last spring I redlined the management agreement myself. One of my changes was dropping the manager's spending discretion from $750 per work order to $400, with written owner approval required above that. It looked like control. What it actually did was put a stranger in charge of nothing on the worst possible day.
A second floor supply line let go on a Friday afternoon. The manager's on-call tech quoted $1,150 to cut in, cap, and start drying. Over the cap, so they emailed for approval. The email went to the LLC address, which routes to my co-manager, who was traveling. I did not see it until Monday morning because my own agreement named him as the approving party for maintenance.
Three days of wet drywall in a 1958 building. The repair became remediation on two units, $4,900. Rent credit to the downstairs tenant, $1,300. The upstairs tenant gave notice sixty days later and I count at least part of that turn against this. So roughly $6,800 of avoidable cost created by a clause I wrote to save money.
What I would change. Caps get tiers, one number for routine work and a separate carve-out for water, gas, heat loss, and anything habitability-related, where the manager acts first and reports within 24 hours. One named individual as approver with a phone number, plus a deemed-approval clause so silence past a stated window is consent. And the notice provision has to point at a person, not an entity mailbox.