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Updated almost 11 years ago,

User Stats

95
Posts
12
Votes
Jason Minnich
  • Investor
  • Milpitas, CA
12
Votes |
95
Posts

Long Term Tenant, Property Management Company Bait and Switch, what to do?

Jason Minnich
  • Investor
  • Milpitas, CA
Posted

So I've posted before about my fun times with my soon to be former property management company, they are fired and now I'm in the searching process but I'm really questioning why I need a company. I have a lease, its 2 years with a 3rd year option, apparently the PM company put in the option even though I directed them to make it a 3 year and the tenant did the same. The tenant thus far has been more worried about me being stationed back in California and taking the house back than leaving as he has a great deal on a great property.

I found a company that I was seriously considering. Real property management of Antelope Valley. They offered 195 starting fees, waving all their other management and leasing fees since I had a long term lease in place, with a 9% rent draw (due to military). They use propertyware just like my previous company, and they seem great for the job, and their sample management agreement looked perfect. Then I gave notice to my former company and I got the new company to draft a contract. Well a couple things changed from the sample to the current, and a big one is their Maintenance section. In the sample agreement it had mentioned they use in house people with a service fee of $38, another plus; but in the real contract it doesn't mention anything about that but references a "Owners Biannual Inspection Brochure" for details including costs of inspections. Well I mosey over to that form which basically says "we will inspect your property at a price, we recommend a minimum of 2, max of 4 and this is the cost schedule". My property falls under the "Swamp cooler and central heat/air" section which is a $95 fee for spring inspections and $65 for all other visits. Their service includes replacing the swamp cooler pad, getting it ready for summer/winter (hooking/disconnecting a hose), replacing CO/smoke detector batteries, and replacing the forced air filter. The only other inspection level is "No inspections". I'm sorry but isn't that part of the 9% deal I have with you, to inspect the property, and I really think the service costs are a bit much too don't you all? It couldn't be more turn-key and easy profit for them but now I find myself questioning if I really need them, if I should keep looking, or what I should do.

So, I ask you my BP Brethren, they are prefect in almost every other way, do I negotiate? Do I self manage from 2000 miles away (I do have a home warranty)? Do you have another idea? Thanks in advance!

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