Should I terminate PM?

[Mike Dymski]

For those who have hired PMs or had to train their own PM, please talk me off the ledge (or push me over)...  I just found out yesterday that 3 of 25 units have not paid April rent yet (and I found out on my own).  My property statement for this complex comes at month-end rather than at the beginning of the month like my other properties because the leases on this property have rent due dates throughout the month (carryover from the prior owners...PM is fixing that).  The 3 delinquent units are due on the 1st of the month and I'm not happy that I am finding out now that they are a month past due (and only when I reviewed the statement and brought it up).  She took over management of this property in mid February and I've had other challenges with her, particularly on turns.  She is now using flooring, painting and maintenance contractors that I found for her because her contractors were too expensive.  I like her personally, she was great with tenants on due diligence walk-thru's and she has been pushing rents up; so, I am torn.  Not timely dealing with past due tenants is non-negotiable for me and not having affordable contractors has been extremely problematic; so, I have to decide if I am willing to train and manage the PM tightly for a period or cut ties.  Having another transition so soon would not be ideal for the complex either.  My inclination is to manage the PM tightly every few days for another month or so and see if she is able to meet my expectations but not dealing with unpaid rent for three weeks may be grounds for termination alone.

[David Faulkner]

If you do not already have a replacement PM identified and ready in the queue, find one ASAP while still thoroughly vetting them; and from now on always have a replacement PM identified and lined up BEFORE you need them. I have seen this sort of thing before, and usually have one stern conversation with them, which never seems to help. Every time I've given a PM a second or third chance, things have always gotten progressively worse, not better and I've ended up needing to fire them and regretting that I didn't do it sooner. I will still have this conversation and give PMs a second chance, but never a third, because I feel it is the fair and right thing to do, but I now fully expect that I will need to fire them eventually once it gets to this point ... still waiting for one of them to prove me wrong, but hasn't happened yet.