managing some properties for a friend-not getting paid as planned

[Daniel Keating]

Hi Folks, I live in Tucson and have 2 rental properties I own and manage. A friend of mine owns 5 rentals in town and he lives in Payson--about a 3 hour drive so I look over his properties.
Originally the plan was that I would look after them until he moved here (we are both originally from Calif) but his wife did not want to live in the desert--so here I am looking after them still.
I cautioned him that to make a living at this he would need at least 8 properties , and preferably pay cash for his home--he only has the 5 and paid waaay too much for his Payson home.
For the last 10 months I have not seen a dime--he had full occupancy until recently. He recently told me he'd be sending me a check for 1000 bucks--umm thats like $16 per month per unit. We agreed on 10%. Plus I have been doing repairs (hanging security screens, replacing doors, light plumbing, paint etc) as well as being on call and arranging tradesmen for stuff I can't fix.
We've been friends for a long time but this is putting a strain on things as you can imagine--how would some of you approach this?

[Account Closed]

Friendship and business are quite often a bad combination.

You can do business with any number of people, but friendships are hard to come by. I suggest that you separate business from friendship and keep this man as your friend.

Tell him that the management was supposed to be temporary and you do not have time to continue to manage his properties. Xerox the page of the phone book with property managers, and send that to him, along with a list of all the handymen that you use, so he can contact them directly.

Send a written notice to all the tenants that you are no loner managing the units and not to call you. Give them his phone number, so they can contact him.

I wouldn't even help him to choose a management company, or he will be calling you every time he has a problem with the manager.

He will still ask you to do chores for him. Politely tell him that you would love to help, but you don't have time and he needs to contact his property manager with the problem and not you. If you don't, he will suck you right back into the position where you are dealing with all his problems for him.

He's over 50 years old. He does not need a nanny, and you can politely bow out of the nanny position. Just be polite and firm about it.