Conflict with Property Manager

[Steve Vu]

Hey guys,

I have a quick question regarding an issue I have with one of my properties in Texas. My property currently rents for 1050/month and the lease is due for renewal on August 1st 2016.

I contacted the property manager in June 2016 regarding a rent increase, and they told me that rent would increase to 1075/month if the tenants decide to renew for a whole year. Otherwise, they would go month to month at a rate of 1275/month.

I contacted 5 other local companies and they all quoted the rent  for my property at 1300-1500/month, so I specifically told the current managers NOT to renew the tenants for a year unless it was at 1275/month on June 30th.

I just followed up yesterday, and they told me they just renewed the current tenants on July 7th for a year at 1075/month.

I absolutely do not agree with this. Do you know if I have any options besides sucking it up, keeping the current lease at 1075/month and firing the PM?
Thanks!

[Ben Leybovich]

So - you figure you lost about $200/month -- $2,400 per year of GOI. What would have happened if they tried to push rent on the existing tenants by $200; any chance they would have moved out?

If so, any chance the turn would have cost you $2,400? If so, you are breaking even, my friend...lol

What about, if the turn took 2 weeks, and it took anouther week to find a new tenant? In other words, on top of the turn costing $2,400, you would also h=suffer from 1 month of economic loss? Would this add up to a $3,675 out of your pocket?

More than 1 way to slice and dice, but I wouldn't be so quick to undermine an experienced operator :)