Property Manager Dropping Rental Pricing Without Our Knowledge

[Mike Loughry]

We recently switched to a new property manager in Fort Myers FL, which we believe is a good rental market. We had a low-ncome unit become vacant and we originally listed it at $875, which we think is market. The property manager said there was lots of interest at that price when they listed. Six weeks later, the unit has not been rented, and they say they lowered the price to $799, without our knowledge and permission, and want to go down to $750, since there has been no interest and in fact no showings to date. This does not feel right. In our experience, property managers always check with us before they drop the price, so we were very surprised and taken aback. Also the story now does not jibe with the story six weeks ago.

We are thinking that maybe they are not really interested in renting out but rather in getting a lot of applications, since they charge $50 per person nonrefundable with each application. Has anyone run across this type of scheme? 

Any feedback/comments would be appreciated.

[Mike Mocek]

Hey There @Mike Loughry Sorry to hear about this.  Typically, when I list an owners property for rent, I consult with the owner on what their goal is and I try to over achieve it.  The goal lets me know what wiggle room I have, most of the time the goal is significantly lower than market so that works in my favor, when I rent $150 higher than expected.  There are the occasions when an owner wants too much, I simply have a heart-to-heart and let them know that it will be tough, but I still list the unit.  If we get no action in two weeks, I reach out to the owner and have another conversation, pretty much weekly after that until it is rented.  

Have you spoken with the property management company?  What does your Agreement say?  A lot of agreements can/will give the PM full authority to make this decision on your behalf.  I would have a completely open conversation with the PM and see what is going on, like it was previously implied earlier by @Stetson Miller, Communication is key and is necessary in order to be successful, not only for your PM but for you as an investor.