Should I fire my mgr now or wait until I have a new manager

Question

I am finding a new property manager for a variety of reasons. Should I just let the current one go now, and I take over in the interim, or wait until I find a new manager first?

I don't want to confuse the current tenants as to who the manager is (old property manager, then me, then the new one), but I also don't want the current manager to find new tenants (property goes vacant next month) and then sign a lease with them and then say he is required to stay because he found those tenants or expects some extra payment or % of the lease due to that. I am under contract with my current manager until April, but he knows there have been problems so I'm hoping he will let it go smoothly. If not, he is in breach of contract in so many ways, I know I would win in court but I hope it would not go that far.

I expect I could hire a new manager later this week, I am interviewing today and tomorrow, but I'm an out of town landlord so it's a bit more difficult - plus have to check references etc.

Amie D. · Answer

Mike Franco yeah that's what I am thinking. However, I am still going forward with my interviews of other property managers and checking references. That way if (when) he goes back to his old self, I will be prepared with a different manager ready to go.

Again, if he is about to sign someone that is one thing but if it gets into next week and so-and-so decided to go somewhere else and the excuses start again, he is out the door. He said he had two guys ready to sign a few weeks ago, then I  never heard back and when I finally got a hold of him, "they rented elsewhere" and the place was still un-rented. So, we shall see.

Mike Franco · Answer

Then I vote to keep him for the time being. 
Rent and occupancy trump all other reasons.

Amie D. · Answer

Yes, you know I thought about that fool me once... etc. I am an out of town landlord though so can't really go down there to show and move someone in. I'd have to advertise, stay at a hotel, etc and my schedule doesn't allow for that.

If you want my gut - No - I don't think he's not going to change. But - one thing I have not had a problem with is him moving in people that have been decent renters. That's why I am considering having him move people in, and once that is done, changing managers if (when) he goes back to his old self. That way I have renters in there already and the changeover becomes relatively painless, versus having a vacancy for a potentially long time.

If we get into next week and these supposed renters don't materialize, then we have another story. But that house is easy to rent, the area is good, so he's probably telling the truth that he has people. Also because he told me about these people yesterday before I told him he was going to be fired (today).

Mike Franco · Answer

Fool me once.... fool me twice....
Trust your gut.

If you are capable, take it back, especially since you know this is college move-in season.

He says he has qualified people. Is he just saying that to BS you? or does he really have some? You should see how qualified they are.

Seems typical of property managers- They leave your house vacant and try to steal your rent. 20 years ago, I fired one just like this.

Amie D. · Answer

I called my current manager to let him know that I've decided to go a different direction with the management of the property, and I could get out there in a week to make arrangements for the transfer.

He proceeded to ask me to give him one more chance with things. He admits he dropped the ball with things and there's been some communication issues, but there won't be going forward. He said he was on the phone getting the bids for the painting and other work, told me the bid, and said he has three graduate students ready to sign on the house, and also there's a mother with two daughters in college who is also interested.

I told him I felt like I have given it another try, we discussed these issues last spring, and they did improve but then have gone back to the way they were. I said I can't get a hold of him when I need to, sometimes it can take a couple of weeks and he won't get back to answer my questions or concerns, maintenance has been deferred that needs to be done, the house has supposedly been advertised since April yet it's about to go vacant and still not rented. I said I went on craigslist in fact  and didn't even see an ad for my house in there.

He said things would not be that way moving forward, and to please give him one more try to earn my trust back and if not we will just dissolve the contract and part our separate ways. He said we've worked with each other for several years now, and he knows he can improve on this and would do so

I told him I would consider it and get back to him. I said I have not been happy with the service so far, and feel that he has known that.

I am concerned about the upcoming vacancy. If he has qualified people ready to sign, it is tempting for me to stay with him for now, see if things do improve (though I am leery because we discussed this in the spring and they again started to lag). With a new management company, I'm not sure of how much turnaround time there would be to transfer things over, start advertising and then showing the place and get someone qualified in there, especially since I am still only in the process interviewing other managers, need to check references, go out there etc.

Part of why I am also nervous is before this manager, I had another one who was not good, she left it unrented for months until I had to go down there and rent it myself. Also besides it about to go vacant, after July/August things get very hard to rent in a college town.

If the current manager has qualified people ready to sign, I'm not sure if it would be better for me to stay with him for now, see if things improve, and if not transfer to a new manager, with the tenants already in there, versus at such a hectic time when the place is about to go vacant. It seems he will just let the contract go without new tenants causing any future monetary issues if I am still not happy. At the same time, I feel like I've already given him another chance, and he's already failed at it, which has caused wasted time and frustration.

Alberto Furet · Answer

Amie,

Check your contract to see if there is anything that outlines what can be done in the event that either party has broken the contract or not lived up to the terms. Also check to see if there are any fees to him if he places a tenant.

I'm an out of state owner as well and I had to fire my property management company about a year ago. I called them and told them that I didn't believe that they had my property's best interest at hand and that I didn't trust them with my property and that I didn't feel that we should continue with our business relationship. I then wrote them an email which referenced the phone conversation and told them that I would be flying into town the following week and to have the keys to the property, which was vacant, and any fees that I owed ready.

Everything worked out fine. Document everything, take pictures of the lawn and anything in disrepair and send a certified letter stating your intentions and why. If you go to the property, it will give you a chance to meet your choices for new management in person and do a walk through of the property  with them and see what needs to be fixed. You can deduct everything off your taxes ( flight, lodging, rental car, gas and food).
Good Luck

Raven Woodard · Answer

Amie,

I too was an out of state landlord and needed to switch management companies.  I didn't have the level of problems you are having, never-the-less I found a new company before my tenant lease was up and notified the former company 30 days in advance.  I checked references and also, contacted local investors to see if there was any negative press on the new company that I had not heard about.  In addition I googled them to see if there were any online complaints (it was scary changing companies because I've been burned by a mgmt company in the past).

Fortunately my transition went smoothly and all is well.  Good luck!

Amie D. · Answer

Ok, thanks for the advice everyone.

Now I finally was able to get a hold of him (he sent me a text at least, anyway) I found out I'm going to have to pay for the front door being fixed because someone apparently kicked it in or tried to kick it in. This is why I don't like undergrads staying at my place.

He also said he now has people interested in renting the place. I'm interviewing two more managers tomorrow but it seems I need to have a talk with him as well so things don't get mixed up. He told me he was finally getting a bid for the repairs and the landscaping work done, but I have heard that for six weeks now. With all the other issues he has, sometimes I wonder if he has a drug problem or something (being serious) to be so delinquent and irresponsible/unresponsive.

Michael D. · Answer

Amie D., sorry to hear you're having such trouble. I had similar issues myself and switched managers recently to a company that I'm much happier with. The old manager was very gracious and said that they were sorry to see me go, that they'd welcome me back, and frankly made the transition easy. I hope yours will behave the same way, but you need to ditch them regardless.

Find a new manager first. Do your due diligence, but try to do it quickly. Review the terms of your current agreement carefully. You may have an out for cause that you can exercise. It's unlikely that the manager will try to force you to stay - he's probably overwhelmed, but at least you want to know the particulars of the contract and what your maximum exposure is.

Once you've gotten a new contract signed with a new manager, then give noticed to your existing. Tell them to stop any attempts to lease the unit, halt all repairs, etc. You might consider giving notice earlier, but only if you're sure you can have somebody in place right away. It's not a good idea to let management lapse.

I was pretty scared about switching managers, but for me it went very smoothly and I was relieved when it was over.

Good luck!

Bryan H. · Answer

I had to let a PM company go. I just told them it wasn't working out and I was going in another direction. I had to give 30 days notice, so I found a new one in that time and had a smooth transition. Since your place is going vacant, I'd just tell them it isn't working out for you, once the place goes vacant you would like to settle up all outstanding payments and go in separate directions. It doesn't always need to be a fight.