Property manager problem with turn over, is this normal?

Question

I bought two turn-key properties in Memphis in the beginning of this year (2019) one at the end of January 2019 and the beginning of February 2019.  My concerns are how long it takes them to reply to my why questions, how much is the tenant responsible for, and why is the rehab costing so much when it was supposed to be turn-key 11 months ago.

Here is the situation:

The one I bought in January just went vacant.  I received a $2741 rent ready rehab estimate.  The problem is a lot of the items on the list are in the scope of work I was told was repaired when I bought the rental, or it is tenant damage / neglect.

One of them is the A/C cage installation.  The picture I received when I bought the residence shows it next to where the A/C would be installed and the picture for the rehab shows the cage still in the same place, next to the installed A/C.  The cage was never installed even though it is on the scope of work. Another is for them to remove a lock box that isn’t theirs.  Shouldn’t this be completed when they rented the residence out, not a year later.

It appears they are trying to charge me for a lot of the scope of work they completed prior to selling it to me.   The house did not appraise for their asking price and they dropped the price for us to come to an agreement on the purchase price.  I may be reading into this to much.

I do understand normal wear and tear.  I also used to be in the construction industry in my 20’s.  I sent an Email last Wednesday (Dec 11th) asking how much they withheld from the tenant’s security deposit and why many of the items were on the scope of work I received for the purchase.

How long is to long for property management to reply to my questions or concerns.  It has been 4 business days not including the weekend.

I am not looking for something for nothing, but I am looking for a fair and balanced solution / agreement. If people would like I could post the estimate (removing all company and personal info).  I am not going to name the company at this time.  I will let everyone know what the outcome is and will decide then, if I will name the company.

Nathan Gesner · Answer

i don't know what "normal" is but I do know what "good customer service" looks like. They should respond within 24 hours and at least let you know they are looking into your concerns. 48 hours if they have a justifiable excuse. After that, I think it's poor customer service and bordering on negligence.

Theresa Harris · Answer

Write down your questions and them pick up the phone and call them.  If they don't answer, this is not a company you want to do business with because if they don't answer your calls, they aren't answering them for tenants or potential tenants as well.

Jason Turgeon · Answer

@Kenny Lundgren don't waste your time calling them. Instead, spend your time interviewing other property managers until you find a good one, then let your current PM know they are fired for poor performance and move along.

Sherif Lyons · Answer

I am currently working for a PM company. 7 days is a ridiculous amount of time not to hear back from them. Kick them to the curb and find a new company. They are far too complacent and likely are doing the same to future residents. Finding a new company now will most likely save you headaches and $$$ down the line.

Joe Splitrock · Answer

@Kenny Lundgren I am with others on picking up the phone to call them. If they are not answering there phone, that is a sign of major trouble. Imagine perspective tenants calling to rent a place or existing tenants calling with an emergency.

I will just add an observation that stories of CA investors having trouble with out of state turn key investing are extremely common on the forums. Incomplete rehab, higher vacancy, excessive maintenance costs or high turn over costs are all common. I am not saying it is right or wrong, just saying it is common.

Best advice I can give is fly out to inspect a property before closing. Or better yet, since your mom and maybe even other relatives live there, have one of them do an inspection. They can open a Facetime with you and you can direct them what to look at.

David Hutson · Answer

@Kenny Lundgren

I would also call them and ask if they received the email and what their normal turnaround time is to respond to concerns.  There are many turnkey companies and property managers here in town so I would recommend you come out, meet with your company and meet with a few others and ask them all the same questions.  Reach out to people here on BP and ask for recommendations if you are not familiar with who to meet with and read their reviews.  If you think there is another company that is a better match then consider moving your properties.  I have done it a few times here and it's pretty easy.  With your comments so far I wouldn't consider working with the provider you are working with now unless they have a good reason for not responding to you, ie, the email was sent to an incorrect address and not received.

Kenny Lundgren · Answer

Nathan G. and Steve Rozenberg

Thank you, guys, for the reply, I figured it was an excessive amount of time without a response.  I still haven’t heard anything from them yet.

I will be sending out another email, this time with all the email addresses I have for the contacts, the company gave me.  I will explain my situation and concern with the lack of response.  hopefully it will get to the right person.  The original email was sent on 12-11, that was 7 days ago.

I am also going to request company policies on many items.  I will be visiting Memphis in January to visit my mom, and check out more properties.  I will try to schedule a meeting to discuss my future investment strategies with this company.  I know there are many good companies in Memphis.  They need to explain to me why they feel they are my best option for investing in Memphis.

Kenny Lundgren · Answer

Thank you for the replys.

@Mike D'Arrigo

Do you recommend bringing in a property inspector every time repairs are done prior to a new tenant being placed or are you referring to a purchase?  thank you

@James WiseThank you for your reply.  I agree it is poor customer service.  Communication got better after i made some phone calls and emails to multiple people in the company.

Here is an update.  The House's rent ready repairs are completed and it is on the website as for rent.  I Was planning a trip for around the 20th, but had some family issues come up and may be hopping a flight tonight or tomorrow.

I am going to try and sit down with a representative from the company and see what we can do to make things smoother in the future.  there are a few items that i would like discuss about my current properties and future investments.  I believe if i am having these concerns, than many other clients probably are as well.  I am not one to just complain.  I will show up with an open mind and address my concerns, as well as present possible solutions.

I will also be contacting other property managers in the area and discuss my investment strategies with.

James Wise · Answer

I agree that 24-48 business hours is an appropriate expectation for a property management company response. Anything longer is poor customer service.

Mike D'Arrigo · Answer

@Kenny Lundgren I recommend giving the property inspector a copy of the Scope of Work at the time of the inspection and having them confirm that the work was done.

Property manager problem with turn over, is this normal?

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