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Updated almost 9 years ago, 01/29/2016
Firing a Client
What Criteria Would You Use to Fire a Client?
When they become more of an inconvenience or waste more of your time than what you will collect from them to complete the transaction. Either that of finish up whatever business you have with them, get paid, then simply let them know that this relationship is not going to work going forward.
If you cant train them to fit within your current system, usually they are unprofitable, a nu science or both. I also found that if all parties are not on the same page, that it is also is an indicator that a change is in order. good luck!
As a property manager, I have fired many clients over the years. I work really hard and do my best with all of my clients. Most of my clients are awesome and we get along great. Unfortunately, I occasionally come across someone that thinks they can treat me any way they want, talk to me any way they want, and get super nit picky about things. This really is with my vacation rental business and has not been an issue with the full-time rentals.
I had one homeowner that wanted me to replace all of the steps to her deck (at my expense) because a small piece of wood had chipped or worn off the front of some of the steps. I tried to explain to her that they are wooden. That is normal wear and tear. All the steps at most cabins look like that. She threw a fit about it, and several other little things like that, so I told her we were done. That woman was a nightmare.
The bottom line is that when the hassle factor of a client outweighs the money I make, it's time for them to go.
We have our PM staff grade their owners on an A - D scale (That could be bad owner, bad property or combination). Every quarter and that is loaded in their profile. If they do not feel they can make a D become a C then we give them the right to fire them.
The biggest cause for employee turnover in PM companies we have found is burnout of your employees. The sad part is by them trying to make sure the D owners are happy the A and B owners feel we are not giving them the same attention and you will lose them and still have the D complaining owner that is never happy. We feel better to let our competition have them and maybe they would be a better fit. We have had a few occasions referred owners to fellow PM companies that we feel would be a better fit and it has worked out nicely for all involved.
@Account Closed we should team up and write a book (or at least a pamphlet) called "How to Get Your Property Manager to Fire You".
How about the owner that insisted that we had to replace the blinds in the entire house because one had a broken slat ("they have to match EXACTLY")? Or the one that put in soft high-end leather furniture -- very expensive -- in the vacation rental after we specifically told her what a bad idea it was and why? Of course it was our fault when it got damaged because, I suppose, we didn't physically prevent her from being stupid.
Oh the stories I could tell. And that's just the owners. The guests are a whole multi-volume treatise.
Years ago, an owner was driving my staff nuts. Completely irrational, rude, offensive and inappropriate. They were complaining to me about this owner when I looked at them and said "fire them - or I'll do it for you". They looked at me, stunned, and said "we can DO that?" They are so loyal to me now that its kind of touching, just because of that. The bonus that their loyalty to the owners that treat them well is equally strong.
Originally posted by @Steve Rozenberg:
What Criteria Would You Use to Fire a Client?
From your expertise, we can only guess you imply a PM ditching a property owner, that's an assumption.
You have a contractual relationship (another assumption) and it should contain a termination clause - - use it :)
@John Dirgo Deweese: My favorite new line: "We didn't physically prevent her from being stupid." I love it.
Yes, I could probably write a book about all the crazy homeowners I have had to deal with over the years. And, the guests are even worse! Just a couple of weeks ago, a guest called me because "the linen closet is in disarray." I sent the housekeeper over to straighten it up for her (I wouldn't want it keeping her up at night), and the woman sent the housekeeper home with all the linens in the house and made her wash them and bring them back. Sheesh.