Need Advice - Fire My Property Manager

[Ursula B.]

Good morning/afternoon BP:

I think I'm about to fire my property manager. Please talk me off the ledge.

I hired a PM a couple of years ago on a referral from a co-worker. I was an out-of-state landlord and my section 8 rental was turning over. I had just decided I didn't want to deal with the Housing Authority or section 8 tenants directly anymore, so I paid the 10% fee and haven't regretted it.

A few months later, I had a condo turning over. The condo is in a nice area and has never taken me more than 2 weeks to rent, even from out of state. I decided 'why bother' and gave this one to the property manager as well. All was well. Fast-forward about 15 months, and the tenant they found gave notice in November 2013, and I was notified in December. Tenant moved in December but didn't turn in keys until January 2, rent was paid through January 19. I hadn't heard a peep from the PM, so I looked on craigslist for the listing. I can't find it.

I emailed the PM and asked for the status over a week ago, to which he responded they've had 16 or 17 showings, everyone keeps saying they're moving soon but no one has filled out an application yet. For some reason I'm not buying this. I don't believe they've had this kind of traffic without a craigslist ad, and I've only had to show it a maximum of 5 times each vacancy to get it rented - all from craigslist. Also, the address in the MLS is incorrect. Finally, it's like pulling teeth to get the PM to respond sometimes. I replied to his most recent email that maybe I need to update the bathrooms a bit to be more attractive and asked for contractor references. No response as of yet.

I do still manage a property myself from afar because it's so easy to rent and my tenants are usually low-key (higher-end rental) and I'm about to purchase another condo that I intend to also manage myself. My gut is telling me to pull this condo from the PM now and attempt to rent it myself, but I have no desire to pull the SFH with the section 8 tenant.

What do you think? I can feel my stress building each day this condo isn't rented, not because of the money (although that's important) but because I'm not sure the PM is looking out for my best interests. I want to believe the PM and think folks just aren't moving yet because of the weather, but this property should not still be vacant almost 5 weeks later.

[Pyrrha Rivers]

Hello Ursula,

I have no experience in REI yet, I'm very hopeful to join the ranks of rental owners very, very soon and I will be in the same position as you. Managing from afar and without a choice. My two cents are not REI specific due to my lack of experience but from your posts I feel there is a communication gap between you and the PM. I have been told I am pretty analytical, so I am chiming in from that perspective.

First, you have been happy with the PM’s performance with your section 8 property. Is that because he has not had to do anything but collect the rent or has he managed turn overs and filled vacancies for it before? The tenant he found was there for 15 months, gave notice and paid up to January 19th although they left and returned keys a whole two weeks prior. (Seems like a quality tenant, from some of the cases I’ve read here).

The tenant gave notice in November and you weren’t notified until December. I have an issue with that. I also don’t think you should have to go through Craigslist to check up on the PM’s work. I think you are entitled to know HOW he is marketing your property so come out and ask him. As @Edward Burns says here, Craigslist may or may not be desirable or appropriate. However if that’s where you want it listed because of your past success, you are entitled to say that. Edward gives you a great suggestion of how to have the discussion.

I’m not sure how you could verify his telling you there have been so many showings with no results, but I do believe you can share your prior experience and express your concern and discomfort with the property sitting vacant. This can lead to your conversation of what he thinks should be done, and follow @Chris Martin’s advice, ending by clearly stating your expectations for property performance as well as communication on his part. He does work for you and expecting him to do the job you hired him for is not unreasonable. You should not have to wonder if he’s too busy with his personal business or have to wait for an email response and worse yet not have a response when you ask about a contractor reference. I think he’s had a decent track record but there are some issues you need to address for him to tighten up. If you are not satisfied with the result of conversation, take action with the contacts you've made but be aware that you may also have to take the section 8 property from him. Sounds like this relationship may be worth saving.

Hope it helps,

Pyrrha