Has anyone have this happened? please help

Question

I secured a property management company to get my house leased. Once
 I signed the agreement, the realtor I spoke to stopped replying for 1.5
 months until I pushed a lot to get an answer and left several 
voicemails because the tenants were leaving that week and I had no idea 
if they were still leasing the house.

Then one day I get a text 
message from a staff from that company saying that she'll be taking care
 of leasing my house and that the other person I spoke to, was only the 
sales person, which they never told me I'll be working with someone 
else.

As part of the deal, they were going to take care of 
make-ready since I live out of state. They asked for additional $300 to 
take care of that. I agreed since I didn't have much choice.

They
 found the contractors: a handyman and someone to replace the flooring. 
The handyman finished the job. The flooring guy asked me for advance 
cash and never did the job, which I only found out a week later.

I
 am now down $6k and the flooring is still not done or started. I 
contact the realtor who was supposed to be overseeing the make ready, 
and she's now saying that it's not her fault, that the contractor was 
referred to her by another contractor, and that my repairs are an actual
 remodel because I am changing the flooring. She has also never answered
 any phone calls and everything has been through text messages, she said
 that it's because she wants to have everything in written.

I 
asked the flooring guy to refund my money, he said he'll do it on 
Saturday. Today, it's Monday and there's no refund at all and he has not
 replied to my messages since Saturday. I Zelled and Venmo'd him, so I 
cannot file a claim with the bank unfortunately.

Can 
someone help with advise on what are my options? and if anyone has 
gone through similar situation, please let me know what worked for you.

Thank you for your help!

Theresa Harris · Answer

I'd look at the agreement with the PM, tell them they have 72 hours to get it made right-get you your money back for the flooring and return your calls. If they don't fire them and get a new PM. Then take them to small claims court to get your money back.

If they aren't replying to your emails/messages in a timely fashion or forwarding them to the right person, how well do you think they are going to handle a tenant?

Nathan Gesner · Answer

In the future, please do not post the same question in multiple locations. When you get answers in different locations, people often waste their time answering what has already been answered when they could be helping someone else.

Colleen F. · Answer

@Lenny Markus you can pay for flooring supplies directly from the supplier and set up delivery to the property if they want money upfront for supplies.  If he is a real flooring business file a complaint with the BBB.  That needs to be done within I think 30 days of payment.

Richard F. · Answer

Accept that you have had an expensive lesson, and learn from it. Or hire an Attorney in your State that will work with an Attorney in the State where your property is to go after everyone. Of course, that will actually be even more costly...

Michael Smythe · Answer

Highly doubtful you'll get your money back from the contractor.

Also, the PMC has no integrity, so they need to be replaced.

What process did you go through to screen this company?

Make sure you do a better job screening the next ones you interview before hiring one.

Even if someone give you a referral, don’t make the mistake of assuming that PMC will meet your expectations, just because they met the expectations of the referral source.

We also can’t believe how many owners hire the first PMC they speak with!

Then they complain their expectations aren’t being met!

In our experience, the #1 mistake owners make when selecting a Property Management Company (PMC) is ASSUMING instead of CONFIRMING.

It's often a case of not doing enough research, as they don't know what they don't know!

Owners mistakenly ASSUME all PMCs offer the exact SAME SERVICES and PERFORM those services EXACTLY THE SAME WAY, so price is the only differentiator – and they often select the first PMC they call!

So, the first question they usually ask a PMC is about fees - instead of asking about services and HOW those services are executed.

EXAMPLE: PMC states they will handle tenant screening – what does that specifically mean? What documents do they require, what credit scores do they allow, how do they verify previous rental history, etc.? You’d be shocked by how little actual screening many PMC’s do!

This also leads owners to ASSUME simpler is better when it comes to management contracts.

The reality is the opposite - if it's not in writing then the PMC doesn't have to provide the service or can charge extra for it!

We have a 14-page management contract that we've added our real experiences to over the years, with the intent of protecting both us AND the landlord. Beyond the Monthly Management, Placement & Maintenance fees, all other fees in our contract are IF EVENT -> THEN fees.

We don’t know any PMCs to recommend in the area mentioned, but since selecting the wrong PMC is usually more harmful than selecting a bad tenant, you might want to read our series about “How to Screen a PMC Better than a Tenant”:

https://www.biggerpockets.com/member-blogs/3094/91877-how-to-screen-a-pmc-better-than-a-tenant-part-1-services-and-processes

We recommend you get management contracts from several PMCs and compare the services they cover and, more importantly, what they each DO NOT cover.

EDUCATE YOURSELF - yes, it will take time, but will lead to a selection that better meets your expectations & avoids potentially costly surprises!

P.S. If you just hire the cheapest or first PMC you speak with and it turns into a bad experience, please don’t assume ALL PMC’s are bad and start trashing PMC’s in general. Take ownership of your mistake and learn to do the proper due diligence recommended above😊

Laura Stayton · Answer

Ouch.  Do you have a management agreement?  I would suggest contacting an attorney but in the meantime start calling other management companies in the area.  Do your research - one with good reviews and established.  If you have an agreement and are bound by that agreement then the attorney will have to help see if it can be terminated for cause.  If you don't I would send notice immediately and follow up with attorney on responsibility of the agents in this.

So many many people assume all real estate agents can do property management and that just isn't the case.  You do have to be licensed in my state (Delaware) to manage other people's homes but there's so much to know to actually manage the home.

Good luck.

Has anyone have this happened? please help

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