PM refusing to show rental due to Corona Virus/COVID-19

Member since 2020 · 44 posts · 6 votes

I have a tenant that his moving out of a rental this week and asked my property manager when they will start showing... they just informed me that they won't show the unit while the corona virus issue is going on. I obviously want to get the unit filled and I feel that is why I hired them. I need to get the unit filled because I have a mortgage due and I wound up letting my PM know that I need it filled because of that and they again told me that there will be no showings until they feel it is safe to do so and then proceeded to tell me that I should have reserves in place for this... which honestly I feel is over the line. Does anyone have any input or advice on making my property manager do what I hired them for? Or have anyone had similar issues with their property manager?

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Greg M.

Rental Property Investor · Los Angeles, CA · Member since 2017 · 2k+ posts · 5k+ votes

Originally posted by @Account Closed:

[...]I just sent them an email again today telling them that they need to show the unit personally as per the agreement and the response they just gave me today was that if I continued to require them to show my unit in-person during the virus outbreak they would cancel my agreement. How is that fair?

That is awful of them. I don't think you are being forceful enough in dealing with them. I'd send them an email stating that "I DON'T CARE ABOUT THE SAFETY OF YOU OR YOUR EMPLOYEES. I DEMAND YOU SHOW MY UNIT EVEN IF IT ENDS UP KILLING YOU!" Sadly, in this business you will occasionally run into people who don't want to get sick or die and will instead do what is best for them and their staff instead of you.

Have them put an electronic lockbox on the unit with temporary access codes. People can come see it during set times.

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JD MartinBusiness Member
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Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes
6y
That's unreasonable. There are ways of showing the property with virtually no person to person contact. They could unlock the door and step away while the people go inside on their own. They could hide a key. They could use a key pad.

I would fire the PM if they would not show. Just because people are supposed to limit personal contact doesn't mean you can't try to function in an alternative matter. There are still people who need to find a place to live and people who need to find tenants.
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Evan Polaski
Cincinnati, OH · Member since 2020 · 4k+ posts · 3k+ votes
6y
@Account Closed, no particular situation similar to this, which I imagine is true for nearly everyone. The 2009 H1N1 pandemic I would say is the closest to what we have going on.
That being said, I get your situation and I can also see their's. Is renting your property worth the risk of anyting from a mild illness to potential death. While the "reserves" comment was definitely not tactful from their perspective, yes there should be reserves buffered in for vacancy, repairs and capex.
As for potential solutions, if you feel the PM is not executing on their duties per your contract, you have recourse to fire them and hire another and/or take over management yourself. I would imagine, given the current shutdowns across the country, you may have a hard time finding any manager willing to show the property right now, so it will likely be on you.
On another forum, I saw some people were going to virtual showings, where the PM essentially facetimes the prospect to show them the apartment. The poster was saying conversion rates are much lower, but much lower is still better than 0. From there, applications, background checks, and lease signing can all be handled electronically to get someone in.
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Anna Sagatelova
Property Manager · Cleveland, OH · Member since 2019 · 446 posts · 566 votes
6y
If you are worried about exposing yourself to show a unit, surely you can understand that the PM is worried about the exact same for their own agents as well as the overall bigger issue of spreading the virus unknowingly/asymptomatically through the community. Person to person contact is not the only way the virus spreads; most people pick up the virus off objects and surfaces, like counters, doorknobs, light switches. And simply saying "wipe them down" ignores the fact that there are nationwide shortages on cleaning supplies, disinfectant wipes, hand sanitizer, etc.
I can tell you that every single PM is making very difficult choices right now. Self showing technology and even FaceTime/video showings leave room for exposure and spread.
Are you paying your PM for that unit while it's vacant? Most PMs don't get paid during vacancy. PMs are taking a financial hit in this situation too.
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JD MartinBusiness Member
Moderator
Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes
6y

Your position is also unreasonable (#2). If you are unwilling to show it because you think there is concern about exposure, why would you think exposure to potentially deadly disease is the PM's job? I would say that your worry about exposure showing it yourself is also unreasonable, because you could do the same things I mentioned above (leave a key, etc). But in any case, your point (#1) is exactly right. It's not as if they're being asked to wander out into a war zone to show a property. All that needs to happen is to take some reasonable precautions - don't come into contact with other people, wash your hands, don't touch your face.
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Marc Winter
Real Estate Broker · Northeast PA · Member since 2017 · 2k+ posts · 2k+ votes
6y
@Account Closed, (you know there's another Patricia Steiner here on BP?)
We have a property management business. We all are taking hits financially. How do you know that even if the property was rented out right now that the tenant wouldn't be out of work in a few weeks or so? What would you say then?
Patricia, I understand you are in financial pain. But you do not 'own' the manager as a slave to do your bidding--especially when there is the kind of risk associated with the shutdown of the country.
I'd suggest you take a step back, take a deep breath, and try to relax. This is going to get lots worse before it gets any better, and it won't be over in the next few weeks.
I'll tell you how bad it is for us:  today the Commonwealth of Pennsylvania has ordered all Wine/Liquor stores to close... indefinitely. Now THAT'S gonna hurt!
8 Reply
Evan Polaski
Cincinnati, OH · Member since 2020 · 4k+ posts · 3k+ votes
6y
@Account Closed in Ohio, all schools closed, bars, restaurants are limited to carry out and delivery. Gyms are forced to close, voting today was postponed to June.
My sister lives in Santa Cruz, CA, and got a notice yesterday that basically any non-essential travel is banned. The only businesses allowed to be open are delivery and grocery stores, essentially.
I certainly feel for you, it is not a great time to be a business owner of any sort. I think if you feel that strongly, and essentially what a found was management companies will never fully align with your wishes for any number of reasons. If you want the property managed EXACTLY how you want, you need to do it yourself. Otherwise you are always at the mercy of someone else's priorities and motives.
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Dan Fitzpatrick
Rental Property Investor · Bellevue, WA · Member since 2019 · 6 posts · 5 votes
6y
Just my two cents but I would rent it out myself if I were you. I am based in Seattle and am self-quarantining unless completely necessary. I would consider this completely necessary, however. The PM should not get paid for the unit that you fill yourself. I understand both sides of the equation and so should they. They don't want to take the risk and I do not blame them. I wish more people felt that way. CDC is saying that social distancing is what we should be doing but they are also saying that one-on-one interactions are low risk especially if you are taking the correct precautions.
Wash/sanitize before you show the apartment and again immediately after and do not touch your face in between.
I will say that the point made above is a valid one - many tenants will not be able to pay their rent due to service closures. There is a good chance we are in for months of pain whether our units are full or not.
3 Reply
Scott Mac
Austin, TX · Member since 2019 · 5k+ posts · 5k+ votes
6y
Originally posted by @Account Closed:
............... I'm not exposing myself to show a unit..............
Kind of sums it up.
Good Luck!

8 Reply
Dee Heck
Rental Property Investor · OH · Member since 2020 · 24 posts · 23 votes
6y
WOW! Was that move to close the bars since they purchase their liquor from the state stores?
0 Reply
Kyle J.
Rental Property Investor · Northern, CA · Member since 2012 · 5k+ posts · 5k+ votes
6y
@Account Closed I was in agreement with you until you posted that you didn't want to do it because you don't want to "expose yourself to show a unit". Kind of seems hypocritical, in my opinion. And the fact that "you pay them" doesn't make your argument a lot stronger if they're not actually charging you as you said. Plus they've offered you alternatives (virtual showings).

These are strange times we're in. So I'm not sure you have much choice in this scenario other than to accept what they've offered you or show it yourself.

For what it's worth, I just showed a property over the weekend to dozens of people (and got it rented). There's ways to do it safely and not take any extra risks. For example, don't have any physical contact with people, have available (and use) hand sanitizer, keep a safe distance from people and allow them to walk around the property themselves (no need to follow along with them). You could even wear gloves and a mask if you were really concerned, but for the average person that's not necessary.

Good luck and be safe.
5 Reply
Greg M.
Rental Property Investor · Los Angeles, CA · Member since 2017 · 2k+ posts · 5k+ votes
6y
Originally posted by @Account Closed:
[...]I just sent them an email again today telling them that they need to show the unit personally as per the agreement and the response they just gave me today was that if I continued to require them to show my unit in-person during the virus outbreak they would cancel my agreement. How is that fair?

That is awful of them. I don't think you are being forceful enough in dealing with them. I'd send them an email stating that "I DON'T CARE ABOUT THE SAFETY OF YOU OR YOUR EMPLOYEES. I DEMAND YOU SHOW MY UNIT EVEN IF IT ENDS UP KILLING YOU!" Sadly, in this business you will occasionally run into people who don't want to get sick or die and will instead do what is best for them and their staff instead of you.
Have them put an electronic lockbox on the unit with temporary access codes. People can come see it during set times.
11 Reply
Kyle J.
Rental Property Investor · Northern, CA · Member since 2012 · 5k+ posts · 5k+ votes
6y
Originally posted by @Account Closed:
...I just sent them an email again today telling them that they need to show the unit personally as per the agreement and the response they just gave me today was that if I continued to require them to show my unit in-person during the virus outbreak they would cancel my agreement. How is that fair?

I hear what you’re saying. Like I said, I’m a landlord too who just had a vacancy myself. However, I just don’t think “fairness” is the metric people are using right now to make decisions. Personal health, safety of their employees and/or the public, guidelines or public health orders issued by government officials, or any number of things might be appropriate metrics for making decisions. But fairness probably isn’t one of them. And, in all honestly, filling the vacancy of one house is probably not high on their list when faced with a global pandemic such as this.

You have several options though. Wait it out, find another PM who might be willing to do it, or fill it yourself. Doesn’t sound like there’s any sense arguing any further with your current PM though. They’ve made their decision and they’re not going to budge.
5 Reply
Christine Kankowski
Real Estate Broker · Temecula, CA · Member since 2014 · 992 posts · 782 votes
6y
We own a property mgmt company and we are not doing in person showings while tenants are still in the property. WE are getting a waiting list and once it is vacant we will open the home to viewings. Safety first at this point. THis is for the safety of the current tenant, and our employees. Some tenants and employees are in situations where they are more susceptible to having this hit them hard. We are having to sacrifice and really self-isolate. We have photos and video online and will have the properties rented super quickly once they are vacant. We own properties ourselves out of state and other managers are doing this as well. Lets be part of the solution to flattening the curve of this virus - Many states will allow tenants not to pay for a while without repercussions too- this had happened in several states. So lets all plan and try to make the best of it.
3 Reply
Anna Sagatelova
Property Manager · Cleveland, OH · Member since 2019 · 446 posts · 566 votes
6y
Patricia, I just want to be very clear that having a property management agreement in place does not equal to you having hired someone to contract or spread a deadly disease while you shelter. That is not at all what you are paying them for, now or ever.
7 Reply
Rebecca G.
Real Estate Agent · Dayton OH (dayton, oh) · Member since 2016 · 194 posts · 123 votes
6y
@Account Closed Im a little worried about your responses here. Yes, it is their job to get a tenant, but if I was your PM I would fire you immediately and tell you to figure it out. $93 a month in future revenue covers them risking their lives for you? risking their brother, sister, nephew and children health? Every owner I work with has text/email/called me to tell me repeatedly cease working until it is safe, not to risk myself or my staff. You my dear need to look in to other options and be thankful if they continue managing for you in the future.
8 Reply
Rebecca G.
Real Estate Agent · Dayton OH (dayton, oh) · Member since 2016 · 194 posts · 123 votes
6y
@Patricia Steiner are you paying them? Just curious? Because my vacant houses pay me nothing. You are paying them to manage your unit you are not paying them to risk their life again I would have fired you as an owner and told you to figure it out
4 Reply
Lynnette E.
Rental Property Investor · TN · Member since 2018 · 2k+ posts · 2k+ votes
6y
I think that it really depends on what part of the country you rental is located in. If its in SF or NY, I probably would wait a while because no really sane person will be out looking at rentals.
In some areas there are no reported infected people. Those areas I would expect the PM to show it in person with disinfectant to spray his/her and their hands before they enter.
In areas with low risk, maybe lots of photos then the final best applicants take in person first choice, if declines lease, then go onto second choice, etc. one at a time and use safe practices.
0 Reply
Steve Richmond
Member since 2009 · 2 posts · 15 votes
6y
@Patricia Steiner Wow, really? Slow down and think this through. Every business, property owner and individual in this country is facing an unknown amount of risk, financial loss and possibly health issues due to what we are getting ready to experience. You owe it to yourself to slow down and evaluate what's really important and vital in your life and then transpose that to others. I wish you all the best.
1 Reply
Theresa HarrisPro Member
Member since 2019 · 15k+ posts · 11k+ votes
6y

For the same reasons you don't want to expose yourself, the PM doesn't want to do that. You could try to pay someone else to do the showings or ask the existing tenant if they are willing to do so for a discount in the rent. These are extenuating circumstances. If you are going to have problems making your mortgage payment, talk to your bank.
0 Reply
Craig Jeppesen
Rental Property Investor · Chubbuck, ID · Member since 2018 · 532 posts · 466 votes
6y
You are just going to have to hunker down for a few weeks like everyone else. The entire country is slowly shutting down. It is a bad time to have a vacancy which is why you need reserves and not be over leveraged. Even if the pm is ok showing it, you are not going to get any takers as potential tenants are hunkering down and waiting as well. Goo luck and this will eventually go away and you will get a new tenant.
2 Reply
Michael Peters
Member since 2019 · 215 posts · 122 votes
6y
@Account Closed as a property manager myself you need to take a step back. These are real people who have to make their own decisions regarding their safety and that of their customers. No one persons health is more valuable then another. If any of our owners behaved the way you were I wouldn't have an issue dropping them. There is absolutely no way that the $93/month fee would cover a PM making daily visits to a property to wipe surfaces down. Many wouldn't even have the staff available to accomplish this task.
Everyone is going to have to make accommodations and sacrifices to get through this. Every PM worth there salt will be moving towards virtual tours and limiting contact. Our office is current closed to outside visitors, all non-urgent maintenance requests are on hold, all tenanted properties have videos for virtual tours, and vacant properties are being toured by tenants alone. No one on our team or prospective tenants are allowed into a property without gloves.
I understand that the prospect of not being able to pay a mortgage is scary, but these are unusual times. Give them a call and start an open/positive dialog.
4 Reply
Anna Sagatelova
Property Manager · Cleveland, OH · Member since 2019 · 446 posts · 566 votes
6y
Any PMs willing to share what software they are using for virtual showings? Or are your agents using personal phones to FaceTime/video chat the interested leads?
1 Reply
Anna Sagatelova
Property Manager · Cleveland, OH · Member since 2019 · 446 posts · 566 votes
6y
Patricia, I hope you find the right fit, but we are all people in this industry and everyone is doing the best they can in the face of danger and uncertainty. At the end of the day, you got a lot of feedback all saying that you need to reevaluate your position, but you choose to ignore that - good luck to you, and especially to your PM!
2 Reply
Michael Peters
Member since 2019 · 215 posts · 122 votes
6y
@Anna Sagatelova we've just been making videos and upload them to our channel on youtube for all occupied properties. For vacant properties we show up in advance and open the property up for them. The whole turn on lights and adjust blinds for optimal daylight. We hang out in our car while the tenant tours the home, gloves are provided and required to be worn, and they can call us with any questions. We also have videos available in case the new tenant doesn't want to do an in person visit. Everything is being signed virtually via docusign. Hope this helps!
We've done walk throughs via facetime in the past and found that a well edited video, multiple takes and a script, has been more successful.
3 Reply
Anthony Wick
Rental Property Investor · Ankeny, IA · Member since 2017 · 2k+ posts · 3k+ votes
6y
@Patricia Steiner
Fire them. Immediately.
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