Property Manager needing advice on owner situation

[Account Closed]

Hi guys, short rant here and need advice.

I'm pretty new around here, and ran into a first of a kind situation today that I need advice on, so I figured I would start here.

I'm a property manager trying to grow and expand my business. After meeting with a home owner and having a verbal agreement to show off the property and find renters, I spent some time listing the property and working hard to find a great tenant. Sure enough after a few days, I find a great tenant who passed all background/credit and income verification checks. I present this great news to the owners, who are thrilled to hear I have done with within a few weeks. They say they wish to employ me and move forward with me as the property manager, which is great. I send over a management agreement and wait to receive it back. After about 2 days, the potential tenant calls back and wishes to view the property again, this time with her kids. I see no problem with this and say why not.

This was the first miscommunication error. The potential tenant thought that we would be signing a lease agreement today so brings the entire family and then some, along with some boxes to move in. When I am informed about this, I hesitate. Since I do not have an official in writing management agreement, I have to refuse it and tell them no to moving in a bit early and spending the night. Toughest thing I have ever had to do so far because they are great people and great renters and it was a very awkward situation.

Before I let them go, I try and see if the owner would quickly send over the management agreement so I can let these guys move in a bit considering I am pushing for a July 1 lease and move in date. Keep in mind they had brought first months rent and security deposit and had it in hand (cash) when they showed up. The owners didn't want to talk and instead decided to text, which lead me to look like an idiot while I tried to explain the situation to the owners via text. Have heard nothing back from owners yet despite multiple calls throughout the day and my brief text convo I had. How frustrating, I line everything up for them and it still won't go forward yet. Also had to play therapist to the potential tenant who was upset about owners and is worried about the property now.

Great. What should my next steps be? Obviously I politely requested the management agreement form to be sent to me from the owners as soon as possible so we can move forward. But now I risk losing great tenants and I'm sure I looked like an idiot trying to vouch for the renters and let them move in a bit early. How do I address this situation?

[William Glass]

That is a tough situation and clearly the biggest issue is miss communication between all parties. I'm  not a property manager and I self manage, but I think moving forward prior to sourcing the tenants get an agreement in place to manage the property with the owners. I think it wastes your time if they choose to go with someone else, self-manage, or sell. It isn't fair to you in the end and obviously not to the potential tenants as you have just done all of the due diligence. If you collected an application fee from the potential tenants for a property you don't have a written legal agreement to manage, that is a red flag to me. I'm not an attorney and I don't think this situation would lead down that path, I just would want everything in writing prior to accepting money and doing background checks just in case.

At this point getting the owner on the phone and explaining the situation should be your top priority. They need to get agreement signed and allow the tenant to move in if they are qualified and allow you to manage the property. If they keep ignoring you and brush you off, I'd start looking for other vacant properties you manage that they may be a good fit. If worse comes to worst and owner blows you off, I find it is best to approach a situation like this with a few alternatives to help the situation. If you don't have vacant units maybe you call other property managers or owners you know and provide a warm referral. Last thing you want is to leave a family without a place to live with no hope. Plus having an alternative just in case even if it is a referral will benefit you in the long-run.