Property manager issues in Indy

[Candace O.]

I bought a property in August that only needed a few fixes in order to be rented and should have been rented by now, but my property manager demanded that a huge list of additional items be done at outrageous prices.  After arguing with them a bit, I changed to another property manager and they are being very slow to do anything.  Both were recommended.  Now I see why many don't want to do out of state investing.  Any ideas?  Also the first management company charged me for all kinds of things to use up my reserve of $300.  They charged me to make 2 keys so that I would have 3 total, but was only able to pick up the original key that was given to them.

[Kenny Dahill]

Hi @Candace O., sorry to hear about the troubles.  Unfortunately, not uncommon.

Unfortunately Management Agreements almost never have any recourse for vacancies.  And if you've already signed the agreement, you're locked in for 12 months unless you're willing to pay the complete remainder of their fees to terminate.  Real fair.

My first question in regards to the fixes is if your property is Section 8 or has to meet certain public standards.  If so, that could explain the long list.  If not, it could be a way for them to generate upfront income.  Who knows if that's true but I think a lot of landlords have that fear.  I would.

What can you do now?  

• Hire Handyman:  If you have their list, then you can call and coordinate your own handyman.  Stop waiting on them and start being proactive.  This will upset them but never forget that your real estate business is your top priority; not their feelings.
• Start Listing:  If you think the unit is ready to go, then start listing it on your own.  Yes you're technically paying them for this service but it's costing you way more than it costs them.
• Fly Out:  As an out-of-state investor, you need to have a presence.  Even if it's once per year.  Being in person is completely different than an over-the-phone/computer relationship.  Spend a day or two and really hound them about the required tasks.