Negligent Property Manager

[Marie V]

What type of recourse or safety net does a property owner have with a negligent property manager? Also, legally, how much responsibility does a property manager have for the actual physical condition of the property?

Please no lectures about how much the owner should be involved. As owners we are as involved as we can possibly be even though we are in a different state (through no fault of our own--my husband was transferred).

Thank you in advance for any advice or information.

[Jon Holdman]

Unfortunately your experience is consistent with what other people report from PMs. I'm sure there are good ones out there, but reports of those are pretty rare.

If the PM threatens to end the contract when you bring up an issue, then perhaps you should end the relationship. Its not much of a relationship if you can't bring up your concerns.

The PM could have been telling the truth both when you were told the tenant renewed the lease, and when you were told the tenant was leaving suddenly. That's not uncommon.

Your first recourse would be with the state real estate licensing agency. Most states require PMs to be licensed real estate agents. So, a complaint to the board may get a response.

Is there another PM in the area? I'd certainly be looking for another, since you're unhappy with this one.

I'd also consider selling this house. If your husband's company's going to be transferring him frequently, I'd only buy property if the company provides a transfer program where they cover your costs. Real estate transaction costs are exorbitant, easily amounting to 10% of the price of the house. "High end" houses rarely make good rentals. You're lucky to get enough rent to cover PITI, let alone the two times the P&I payment you need to break even. I understand you thought you would move back, but this sounds like its been several years with no end in sight. The costs your experiencing are not unusual, though it does seem like the PM is not dealing with them very well.