PM Company Tactic - what would you do ?

Question

A SFH I own was being re-prepped to re-rent and was being advertised by the PM company.

Who, as is ever increasingly more evident, apparently do whatever they want, often ignoring what I tell them to do, and then if it's ever questioned they have a version of The Story which makes it all my fault. <g>

Now I am the first one to admit that in the swirl of things I am sometimes confused in regard to exact details, or perhaps have forgotten something. But . . . . . Not This much! <g>

There has been a string of things proceeding along those lines but I really do like the girls who run this PM company and they seem to mostly produce solid tenants for me. But I thought to ask for opinions here in regard to this latest thing -

The PM advertised, showed the house, and came up with a nice insurance single guy with 790 credit and a completely blemish-less past. This was In the middle of March.

I said: I like him: sign him up - start the lease on April 1 - I'll have the place 101% by then.

The PM girls called the next day saying: The new tenant wants to begin lease / move in May 1

Unacceptable - I am not leaving the house sit empty for a month without being paid. How about a big Hold-The-House fee?

He won't pay anything like that.

OK; get somebody else then. There is a rental shortage in this county - find somebody great who wants to move in on April 1. I don't see any reason to let the house sit for a month for nothing.

OK; we'll see what we can do.

That afternoon I get a call from them: How about if the tenant moves in on April 15?

OK; fair is fair - I will meet him halfway - April 15 is fine with me.

OK - done.

I few days later I am at that property working and the guy stops by. He wants to measure the rooms. He and I get to talking and we end up exchanging cell phone numbers. As I do with all tenants; I tell him to call me if there is ever any question he has or anything I can do for him.

As it happens I decided to do more improvement work there than originally planned so I am still there before dawn on April 15 - frantically trying to complete before his moving company comes. The whole day passes and no one shows up.

I think: Hey; OK - maybe he didn't want to miss work and is moving in on the weekend. On Saturday I go over there to change the locks. I putter around and by 11:00A no one shows up so I text the new tenant:

Are you moving in today?

Two minutes later my phone rings and it's him: No; I'm not moving in until May 1.

Why is that?

Things didn't work out for moving in earlier than that.

Do you have a copy of the lease?

Yes.

When does the lease say that the rental term begins?

May 1

So he and I chit-chat about some various things and I get off the phone.

So apparently what happened was that I said: No; I'm not leaving the house empty for a month. I can only assume that they didn't want to do any more work finding another new tenant so they came up with some bs story about the guy moving in on the 15th. Of course maybe they got me to agree to that first - then went to the tenant for agreement and he refused. But in either case they then just wrote the lease for May 1 and said: oh to hell with what the owner says - this is what we are doing.

What do you think?

What would you do?

Account Closed · Answer

I'd charge the PM for 2 weeks rent.  If I had to file in small claims court, I would.  It's unacceptable.  You shouldn't like them anymore.  Maybe it's a good time to fire them, actually.

James DeRoest · Answer

Would have accepted May 1 and forgone the headache frankly. I'll take an empty month for an overqualified tenant any day of the week.

Got a prospective tenant at the moment, wanting June 1. Fine, they seem overqualified for this, I should have them for a good two years and not worry that they'll either trash the place or run off owing money. I'll take 4 weeks for a quiet life.

Mike Hanneman · Answer

COnfront this PM, and get rid of them. I know there has to be better ones in your area! Also go to every REI meeting and tell people about this PM, REI is a game that uses word of mouth, maybe you'll save some other property owner the hardship of having to go through this same thing with this same PM. It might also get other owners to check up on this PM.

Robert Melcher · Answer

@Stephen S.  Sorry, one more note: I do have landlords who prefer to do their own repairs.

They do not identify themselves as the owner, and they are not bashful about sharing with me when the house is not well kept or if the tenant has something to share with him that they didn't share with me.  The upshot is that they don't resort to calling him directly, we still insist on written repair requests, payments through our web portal, etc. and without fail the landlord prefers this.  Who wants to take that 2AM call for a water leak?

Robert Melcher · Answer

@Stephen S.  I have had legacy tenants who had a long standing relationship with the landlords, and new tenants that back-channel reach the landlords to get around me.

My purpose as a property manger is to keep my clients out of trouble by being on top of the laws and understanding the lease.

A tenant manipulating a landlord and undercutting my ability to act on the landlord's behalf by going around me puts the landlord at risk, financially, legally, and emotionally.

A good property manager (I will flatter myself) is a first-magnitude poop screen.  I live to alleviate stress, not create it.  I can't do that if my client gets in the way.

Stephen S. · Answer

Thanks David.

I am fine with self-management - But I travel a lot so I feel that I really need someone 'boots on the ground' to handle things promptly if the poop ever really hits the propellor.  When I am around locally it's no problem but I am concerned for failing my tenants if I am far away or well out of touch.  That is the only reason I am not self managing at present.

BTW:  the thick is plottining in regard to this PM company.  Now we have uncovered the fact that they are not using our furnished lease, providing us tenants with criminals records and worse, and collecting late fees from tenants but not crediting them to us.

Recently I partnered on a few houses with a friend of mine and he is now like a terrier on a mouse - once he found an single issue he went wild investigating. <g>

David Faulkner · Answer

The PMs would be so fired with me ... I have given PMs the benefit of the doubt and given them 2nd and 3rd chances before after having a serious conversation about things needing to change, and each time I have come to regret it. Also, sounds like you are already doing all the maintenance and make ready, and also spending a lot of time managing your manager ... why use one at all? You can learn to screen tenants ... it is not rocket science ... you may even find it easier to manage tenants than it is to manage bad property managers or to find a good one ... seriously.

Fred Heller · Answer

Your PMs are also licensed Realtors and one of the duties Realtors have to their clients is the duty to obey your instructions. If you told them you would not hold the property until May 1, that should be the end of the discussion.

One of the first questions I ask a prospective tenant is when are they planning to move. If someone told me today that they were looking to move June 1, I would tell them upfront that the rental will not be held that long if it's ready to move in today.

Stephen S. · Answer

I was curious just exactly why David's suggestion to be hands-off was made.  I ask in curiousity because in a very real way I would much prefer to do that.  But in general, and now specifically, I  don't understand how that would well serve my interests.  What benefit comes to me as a result of hiding myself from tenants?

I have already ruled out the use of virtually all contractors.  I am able to easily do this because I am a contractor who is qualified to do all possible work on a property.  And property management supplied contractors have, without exception, universally proven to be ( speaking graciously:)  less than acceptable for my requirements. <g>

Mike Hanneman · Answer

@Stephen S.  I would never take a hands-off approach if I'm the one who owns the property. You need to be checking up on/in with your PM constantly. A PM will never have your best interest in mind as they have other properties they have to worry about. Even as other PM's say to have a hands off approach you should not! Like you said if you did you wouldn't know about the issue you are dealing with now.

I would run over to the PM's office to deliver the 2 weeks rent bill personally and ask them what the hell they are doing? I would not be nice, as you said this isn't your first issue with them. Then I'd start looking for another PM co. The PM is suppose to work for you the property owner, if they won't find one who will!

PM Company Tactic - what would you do ?

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