Reaching out to tenant when PM is in place?

Question

Is it ever advisable to reach out to a tenant when you already have a PM in place? There are a couple of reasons why I am considering doing so, but before getting into them, let's see if I can understand the risks involved with reaching out to them:

1) I might undermine the authority of the PM.
2) I open myself up to that possible 2 a.m. call in the future when the the PM should be contacted instead.
3) With my contact information, the tenant could potentially play me and the PM off of each other down the road, making the PM's job and my life unnecessarily complicated.

I own an SFR in Indianapolis and am dissatisfied with my current PM because
1) they're not even based in Indianapolis and more importantly
2) they don't always return my calls/emails and take too long to give me basic status updates on items like outstanding work orders.

But I've got to first line up a replacement PM before firing the current one.

Meantime, I'd like to reach out to the tenant because
1) The tenant had expressed (through the leasing agent at the time of lease signing) a desire to build a deck and backyard fence. I'd like to know if they were still interested in doing so. For all I know, they may have tried to seek permission from me through my PM, only to have their request fall on deaf ears.
2) I'd like to hear whether their needs are being taken care of by the PN. Last thing I need is for a good tenant (which I believe they are, having paid timely rent every month since moving in) to move out because the feel their needs are not being met by the unresponsive PM. I feel I can't trust my PM when they tell me that the tenant's home is fine and that the tenant is satisfied.

According to the leasing agent, my current tenant received glowing reviews from their previous landlord of 5 years, who called them model tenants that treat a rental home like it is their own. That landlord had to sell the home, which is the only reason why the tenants needed a new home and eventually moved into mine. That glowing review, along with their preference for a two-year lease, and their desire to build a deck and fence on their own dime all paint a picture of a responsible tenant, the kind I should comfortable reaching out too with minimal risk of repercussion.

Thoughts or suggestions?

Troy Whitney · Answer

Your property. Call the tenant, and get a new PM. I have a great one in Philly with a go-to guy that I call all the time. You need the same thing.

Whitney D. · Answer

I dont know about 'firing asap'. But you do need to get a new PM and rather quickly. It shouldnt take more than a week to do your research and find a good new PM for the place. Its highly unlikely in that time that the tenants are going to leave or anything is going to change. The only reason I would reach out to the tenants in this situation is once you have an new PM lined up, send them an email and let them know the PM was not meeting your needs and you are going to use a new PM. Apologize for any inconvenience for them (more paperwork etc). Make sure you put in something along the lines of "I am sorry for the inconvenience but for all your needs please make sure to contact x from now on." To make it clear that you are only reaching out to let them know whats going on. and not to open a window for them to start contacting you for everything. I suggest this only because its good for them to hear 'officially' whats going on so there are no rumors or confusion. If they still want to build a deck and fence they will discuss it with the new PM and you will find out, otherwise it comes off as greedy to contact them about it directly.I have had contact with the tenants in my house, I actually found them first then my PM, but I made it very clear from the start that we would be using a PM for their protection and mine (I live out of state) and that everything needed to go through the PM. Even though I have their number and they have mine, we never call each other directly. Its not a door I ever want to open. They are great people with a fantastic rental history and take great care of my home, but this is a professional deal and things can easily go bad when you try and make the relationship personal. I really like my renters as people, and thats exactly why I dont want to deal with them directly.

Account Closed · Answer

I agree with @Mike D'Arrigo Fire the PM ASAP. If the tenants are as good as you say, just self manage for a short window while you find a new PM. Inbox me if you want a recommendation for my PM who I think is really good.

Mike D'Arrigo · Answer

I'm not sure I see the point in putting together a survey. You already know the PM is doing a lousy job and have made the decision to replace them. Why go through the trouble of doing a survey to tell you what you already know? Would it have any affect on your decision? Personally, i would fire your current PM asap and move on. I they're doing a lousy job, no point in over analyzing it. The PM that Anish Tolia uses is one that I have worked with for years and he is very good. Be aware that you might have the opposite issue with him though and you may find you need to push him for higher rent. This is a perfect example of why it is so important that the turn-key company you work with is working with excellent property managers. Property Management is critical to the success of an out of state investment.

Jason L. · Answer

Thanks @Mike D'Arrigo and @Amanda Litz for your suggestions. Amanda, great idea to put together a survey. That's at the top of my to-do list, along with securing a replacement PM.Mike, the out of state PM actually purchased this block of business from my original PM who, despite being based in Indy, had to be talked down by me to a more reasonable asking rent. Yes, all very bizarre. Anish Tolia , sending you a pm.

Stephen Lofthus · Answer

Jason Leong Who is the PM you are using?

Troy Whitney · Answer

John - you bet. Just sent you the info.

Yishi Garrard · Answer

As a PM, I'd say you need to start finding a new PM, but keep the current PM in place so you're not having to manage it yourself. It is always not advisable for owners to contact the tenants directly when there's already a PM in place. Depending on the tenant, they can end up calling you first instead of the PM. This is a classic example of creating more work for yourself needlessly. Sounds like you have a good tenant so you don't need to be as guarded, but as you move forward, make sure to carefully vet PMs and you'll avoid this problem. Bottom line, if your goal is to have a PM manage your property, then you need to avoid direct contact with the tenants.

Jason L. · Answer

Thanks for sharing your experiences and thoughts, @Jesse Waters . Yes, I do need a new PM, fast. However, I'm less sure about the advice (from earlier posters, not you) to fire my PM "ASAP" given that, as I'd mentioned earlier, I don't have a replacement PM yet. I think it'd be prudent for me to keep "a" PM in place while I continue my methodical search for a new PM. After all, it was because I didn't thoroughly vet this current PM that has put me in this situation.Thanks again, BP Nation, for weighing in! You guys rock.

John Matthews · Answer

@Troy Whitney Can you PM me your property management company? I've been looking for one in the area for the past few weeks....thanks!