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Updated over 6 years ago on . Most recent reply

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Sabrina Savinski
  • Rental Property Investor
  • Leominster, MA
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Firing a Property Manager mid-Contract

Sabrina Savinski
  • Rental Property Investor
  • Leominster, MA
Posted

Looking for advice on how to handle a negative relationship with our property management company. We have been pretty unhappy with their services for the entire time we've been working with them, but they do the bare minimum- they found a tenant, we get paid every month and a statement in the mail. The quality and demeanor of the service has been inadequate IMO but nothing to fire them over.

Recently, we received a bill for almost $1000 for repairing a window screen. This repair took place over the course of 3 weeks and we received no communication about it and were never asked to approve the expense. Our contract places a $500 limit on unauthorized expenses unless it's an emergency. When I asked to have a conversation about it, the owner of the company insisted that this was an emergency repair. She was extremely rude and actually told me that I should end the agreement- by buying out the rest of the contract (pay them 100% of their fee for the remaining 10 months on the lease).

Does anyone have an experience like this? Is it worth fighting over? Or should we just eat the fee and go separate ways? The property is in Maryland if that helps at all. Appreciate anyone's advice or sharing similar experiences and how they were resolved.

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Nathan Gesner
  • Real Estate Broker
  • Cody, WY
41,075
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Nathan Gesner
  • Real Estate Broker
  • Cody, WY
ModeratorReplied

Come on. No screen is an emergency and the Property Manager should have contacted you. Even if there is an emergency, they should deal with the emergency and then call you as soon as possible. It sounds like they didn't contact you at all but just sent you a bill. You can easily replace an entire window for $500.

Write up your complaint with and cite the specific clauses they've violated. Demand termination and full justification for the cost or you will sue them in Small Claims for damages.

In the meantime, find a new Property Manager. You can start by going to www.narpm.org and search their directory of managers. These are professionals with additional training and a stricter code of ethics. It's no guarantee but it's a good place to start.

1. Ask how many units they manage and how much experience they have. If it's a larger organization, feel free to inquire about their different staff qualifications.

2. Review their management agreement. Make sure it explicitly explains the process for termination if you are unhappy with their services, but especially if they violate the terms of your agreement.

3. Understand the fees involved and calculate the total cost for an entire year of management so you can compare the different managers. It may sound nice to pay a 5% management fee but the extra fees can add up to be more than the other company that charges 10% with no add-on fees. Fees should be clearly stated, easy to understand, and justifiable. If you ask the manager to justify a fee and he starts hemming and hawing, move on or require them to remove the fee. Don't be afraid to negotiate!

4. Review their lease agreement and addendums. Think of all the things that could go wrong and see if the lease addresses them: unauthorized pets or tenants, early termination, security deposit, lease violations, late rent, eviction, lawn maintenance, parking, etc.

5. Don't just read the lease! Ask the manager to explain their process for dealing with maintenance or problem tenants. If they are professional, they can explain this quickly and easily. If they are VERY professional, they will have their processes in writing as verification that it is enforced equally and fairly by their entire staff.

6. Ask to speak with some of their current owners and current/former tenants. You can also check their reviews online at Google, Facebook, or Yelp. Just remember: most negative reviews are written by problematic tenants. The fact they are complaining online might be an indication the property manager dealt with them properly so be sure to ask the manager for their side of the story.

I hope this basic guide helps. If you have specific questions about property management, I'll be happy to help!

  • Nathan Gesner
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