PM delayed renting unit/can I recoup rents?

[Linda West]

I hired a PM on 6/30/22 to handle an upcoming vacancy.  Confirmed in writing and via zoom chat that the unit would be ready 9/1/22.  For reasons known only to him and to God, PM decided to list unit as available 10/15/22.  It was rented 9/6 for occupancy 10/15.  I would like to recoup the money I believe I lost - this is a lovely, high end unit and rents immediately.  Had the PM listed it for 9/1 as I instructed, it would have rented a month sooner.  Thoughts?

[Jonathon Hunt]

It seems to me that this is gross negligence on behalf of your property manager. I would first seek to have a follow up conversation with your PM showing your written confirmation of this. It does seem reasonable for a prospective tenant to negotiate a later start date which your PM may have agreed to with the tenant, but it would be prudent to have your PM notify you of this prior to agreeing.

I don't know the details of your relationship with your property manager or what lives in your property management agreement, but if you provided the 9/1 date, and PM actually listed at 10/15, then you should be entitled to some credit, in my opinion. No idea how you would collect on this. I would obviously try to resolve this with the PM first to avoid small claims.

I hope you are able to work this out.


 

[Nicolas Trejo]

Quote from @Jonathon Hunt:

It seems to me that this is gross negligence on behalf of your property manager. I would first seek to have a follow up conversation with your PM showing your written confirmation of this. It does seem reasonable for a prospective tenant to negotiate a later start date which your PM may have agreed to with the tenant, but it would be prudent to have your PM notify you of this prior to agreeing.

I don't know the details of your relationship with your property manager or what lives in your property management agreement, but if you provided the 9/1 date, and PM actually listed at 10/15, then you should be entitled to some credit, in my opinion. No idea how you would collect on this. I would obviously try to resolve this with the PM first to avoid small claims.

I hope you are able to work this out.


 

 Agreed on this here.  Probably a lost cause receiving any credit unless the property manager values your business and relationship OR whatever is stated in the mgmt agreement.  Barrier to entry for RE license is very low so this is a lot more bad PMs than good ones!  Same thing with RE agents!

[Drew Sygit]

@Linda West what does your management agreement state?

What did the PMC communicate to you about the reason for the delay?

[Nicholas Coulter]

@Linda West I'm not sure but I would imagine it would be in your contract. It sounds like it might be time for a new PM...

[Bill B.]

Probably not a worse time in your life to switch PM’s. You’d probably owe the current PM all the fees that would have been collected during this lease and then they wouldn’t have to do any work. So you’d pay another company to do the work you already paid for. Maybe you get lucky and they bail 6 months in and you’ve basically paid triple fees. 

[Nathan Gesner]

Quote from @Linda West:

I hired a PM on 6/30/22 to handle an upcoming vacancy.  Confirmed in writing and via zoom chat that the unit would be ready 9/1/22.  For reasons known only to him and to God, PM decided to list unit as available 10/15/22.  It was rented 9/6 for occupancy 10/15.  I would like to recoup the money I believe I lost - this is a lovely, high end unit and rents immediately.  Had the PM listed it for 9/1 as I instructed, it would have rented a month sooner.  Thoughts?

It depends on what your agreement states. You said it would be "ready" on 9/1/2022. But what if the very first applicant said they wanted to start renting it 10/15/2022? Did you instruct your PM to not hold it for anyone that long? 

I'm very clear with owners. My policy is that I will not hold a vacant unit for more than one week. If the applicant wants it, they'll start paying rent, even if it's going to sit empty for a month. If they don't like that, they can wait and hope it's still on the market when they're ready to pay rent.

I just had someone apply for a nice home that is currently vacant and ready to occupy. They were approved, we offered it to them with the understanding they would move in about a week later. Last night they emailed us and said they will put the deposit down but they won't be moving in until January 1st. I told them they can occupy it any time they want but they need to start renting it next week. If they don't agree to that, then I'll leave it on the market and find someone else to rent it earlier.

[Chris Seveney]

@Linda West

I would bet your contract indemnifies the pm for any costs associated like this. Chances of recouping any money are very slim and will only upset the pm. Unfortunately have to chalk this one up to “part of the business”

[Matthew Irish-Jones]

@Linda West. You need an explanation from your PM. “Potential tenants” are notoriously fickle.

Aside from the delay in getting the unit rented a good PM company will put a high value on owner communication. Call and ask them why they delay. If they had someone back out, or they had a great candidate who wanted to sign a 24 month lease but needed a month to move in, there could be a solid business reason for making this decision.

Property management business is a service business. Servicing both tenants and owners equals up front, honest, transparent communication.