Switching to New Property Manager and Need Help!!!!

[Amanda Whiteley]

I currently have 3 doors in IN with Ocean Pointe investments and I am switching to BHB Investments for some pretty serious reasons.  But where I am at right now is one of my tenants (that we think is a tenant right now and not a squatter) has been left 3 welcome packets and has not yet made contact with BHB.  BHB has suggested that we start the eviction process next month, which I am on board with.  But, they mentioned that if this tenant shows up with a lease (from Ocean Pointe) and copies of receipts showing they paid rent (to Ocean Point) then we would lose the eviction.

OK- so will we then get the chance in that court room to state that we have a new property management company and they should be paying rent to them in the future?  My concern is that if this tenant is paying or continues to pay Ocean Pointe we will not see our money. (Again, I can't comment too much on this part for legal reasons) My main question is will we get to redirect the tenant in court? Have the tenant fill out the lease information with BHB and then start paying BHB? Or am I just screwed?

[Caleb Heimsoth]

Have you received any rent at all from any of these? At this point I’d probably want to sell before continuing to try to make it work.

That tenant class will always be a ton of work to handle.

[Amanda Whiteley]

@Caleb Heimsoth I would agree, but we have had success with our units being rented and they are actually in fair shape.  My concern is, IF this tenant has a lease and can show proof they have been paying rent we will lose this eviction.  Will the judge then give us the ability to correct the tenant and say this new PM has been hired rent payments should be going to the new company etc.

[Caleb Heimsoth]

@Amanda Whiteley I can’t really comment to that.  I do know that when I switched PMs the new PM had the tenants sign a version of their lease.  So same payment rate and end date, just their copy instead of the old one.  If you do that then you know it’s not fake and what not.

I honestly don’t know what would happen if the tenants pay oceanpointe and not the new PM.  I’d just file for eviction and see what happens.  These things take time though 

[Amanda Whiteley]

@Caleb Heimsoth for sure, I hear you about fake leases.  Trust me, this journey has been a nightmare with OP.  My other thought is this guy is not making contact because hes a squatter.  Which is fine (part of the process I guess) and we will just take it one step at a time. I guess this is a great question for my new PM.

[Caleb Heimsoth]

Yeah id just talk to them. It’s going to take a month or two to get it all sorted out.

[Amanda Whiteley]

Thank you!

[Jay Hinrichs]

in this asset class this is more common than you probably realize.. I am thinking an eviction notice for non payment is the only way to get their attention.. I sure hope you have reported Morris/OP to the Indiana authorities..

[Shiloh Lundahl]

@Amanda Whiteley If the people in the home are in fact tenants and they pay the property manangememt company after you switch, then what I was told was the tenant still owes you the money and the tenant  will need to report the money as stolen to the police and they will need to try to collect it that way. However, some property management companies just create charges and bills for work that they say they did and they keep the money saying that they were owed that for work completed. 

[Lior Reich]

Have you tried talking to the tenant directly? Phone? Text?
You will be surprised how easy it might be dealing with the tenant directly and figuring out what is what.. hope it helps

[Lee Smith]

@Amanda Whiteley I have dealt with more than my fair share of OP stuff over the past few months.. Your best bet is going to be to have your new PM physically send someone over to put a letter in the door. If they don't or didn't respond then eviction is your next step.  They very well may show up for court and then it's up to you whether you keep them or not. 

We had 2 different units not respond, and not show up for eviction court. When we showed up with writ to forcibly evict them they provided receipts for paying rent. We just went ahead and moved them out. If they aren't responding even to the sheriff then you probably don't want them.

It's going to take some time to recover from this. Best wishes!

[Ali Hashemi]

It sounds to me like someone needs to go knock on the door and check with the tenant in person. If you need help from someone local I may be able to help or perhaps BHB can send someone out.

[Joel Wilmoth]

Yes..with most of these Morris/OP properties we have to knock on the door and identify who is living there.  I would assume BHB is doing all they can to ascertain the property is actually occupied?  We have found them in all states. 

1. not occupied but abandoned

2. squatters

3. Tenants with an OP lease that is new and different than the one the owner held

Please message me directly if you need somebody to help figure this out. 

[Nathan Gesner]

I agree with some of the others. BHB should send someone to the home immediately to see if it appears to be occupied. They should post a notice on the door of the following:

1. The owner / manager has no rent money for the past three months or written agreement authorizing anyone to reside there. Anyone found in the unit will be evicted.

2. BHB intends to enter the premises on May XX, 2018 at XX:XX AM/PM to document the condition of the home and change the locks. They will be escorted by police.

If anyone is living there, legally or not, a hard-line notice like this should be enough to motivate them to reach out and start talking to BHB. For all you know, they are good people caught up in a bad experience and OP has been stealing your money without the Tenant's knowledge. If they are willing to communicate, you may be able to straighten this out and avoid court. 

The steps I would take:

1. Find out if there is an occupant. If not, change the locks and be done.

2. If there is an occupant, determine if they are a squatter or legal resident with a written lease. If they are a squatter, evict. If they produce a legal contract, BHB should be able to talk to them and negotiate transferring them to a BHB lease and then you can go after OP for the unpaid rent, deposit, and other issues.

3. If they have a legal contract but refuse to work with you, start the eviction process.

[Nathan Gesner]

It's interesting to hear a company like OP is apparently known and yet allowed to continue operating. Do you guys report them or do anything to shut them down?

[Amanda Whiteley]

Thank you guys so much for your responses.  I wanted to update you on the current situation. BHB has been a godsend.  They have made contact with current "tenants."  I am in the process of getting my duplex rent ready and the estimates have come in fair.  My single family home is another story- we are in the process of eviction (wish me luck).  If anyone out there is considering Morris Invest I would love to speak with them a few minutes offline.  Thank you all for the feedback and help!