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6
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Sam Nichols
  • Oakland, CA
2
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6
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Advice on property manager not replying to calls for over a month

Sam Nichols
  • Oakland, CA
Posted

Hi all,

long time lurker but I've run into a spot of trouble.  I have a property in Memphis that the property manager has been managing fine for > 5 years and they recently became unresponsive to calls/emails and have missed sending payment to me.  My question is what are next steps?  I imagine a lawyer is part of it but I also likely need a new PM and what even is the course of action to get keys/info/etc from the existing (unresponsive) PM?  Best solution would be finding a new PM that can just take care of all of this for an additional fee...

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Replied

Was this PM a one man company? Perhaps there is a health issue. I would reach out to the tenant and inquire when was the last time they heard from them. Depending on what they say would influence the next steps.....also send a letter/email something in writing to the PM detailing the lack of response and the contract you have with them. Hint at taking legal action as well.

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Replied
Quote from @Tony Ros:

Was this PM a one man company? Perhaps there is a health issue. I would reach out to the tenant and inquire when was the last time they heard from them. Depending on what they say would influence the next steps.....also send a letter/email something in writing to the PM detailing the lack of response and the contract you have with them. Hint at taking legal action as well.

I have had good luck with Advantage Property Management 
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Theresa Harris
Pro Member
#3 Managing Your Property Contributor
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Theresa Harris
Pro Member
#3 Managing Your Property Contributor
Replied

I'd see if there are other phone numbers to try?  Do you have contact info for your tenant so you can contact them directly?  If the PM has an office and staff, I'd be concerned that they aren't returning your call.  Try calling from another number and pretend you want to view one of their listings.

  • Theresa Harris
  • User Stats

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    Scott Trench
    Pro Member
    • President of BiggerPockets
    • Denver, CO
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    Scott Trench
    Pro Member
    • President of BiggerPockets
    • Denver, CO
    Replied

    @Michael Calvey - Could we please refer Sam to all of the property managers in Memphis for him to select from and interview? 

    Sam - we are putting a list of local property managers in markets around the country together for exactly this reason. 

    We plan to launch this in a few weeks, but you need people to interview right away, given that you are likely in process of being robbed. 

  • Scott Trench
  • User Stats

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    Lynn McGeein
    • Real Estate Agent
    • Virginia Beach, VA
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    Lynn McGeein
    • Real Estate Agent
    • Virginia Beach, VA
    Replied

    @Sam Nichols this happened to us in Raleigh. It was a single licensed manager with support staff, and turned out she had a family emergency and just stopped working. Her staff wasn’t allowed to handle money, so we didn’t receive rents for months. We found new professional management that had several licensed managers on staff. They were great, helped us get our security deposits transferred and all of our back rent. No matter how great a 1-person manager is, even with staff, you’re one personal issue away from major problems.

    User Stats

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    Nehemiah Burney-Porter
    • Investor
    • Philadelphia
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    Nehemiah Burney-Porter
    • Investor
    • Philadelphia
    Replied

    You dont need to lawyer up yet. But you should DEF find another PMG like yesterday. Let them know of the situation, get your insurance transferred and then let them go to work for you chasing down the deposit and what not. If they run into trouble with a refusal or anything, then you can get a lawyer involved.

    User Stats

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    Adam Schneider
    Pro Member
    • Lender
    • Raleigh, NC
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    Adam Schneider
    Pro Member
    • Lender
    • Raleigh, NC
    Replied

    @Sam Nichols. You may want to contact the real estate commission in TN.

  • Adam Schneider
  • User Stats

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    Michael Smythe
    Property Manager
    #4 Off Topic Contributor
    • Property Manager
    • Metro Detroit
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    Michael Smythe
    Property Manager
    #4 Off Topic Contributor
    • Property Manager
    • Metro Detroit
    Replied

    @Sam Nichols start interviewing new PMCs ASAP - you can find licensed ones at NARPM.com.

    At the same time, download everything you can from your owner portal - if your current PMC supplied one.

    Anyone that takes over will want: Lease, Rent Ledger, Tenant contact info.

    User Stats

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    Sam Nichols
    • Oakland, CA
    2
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    Sam Nichols
    • Oakland, CA
    Replied

    Quote from @Tony Ros
    Was this PM a one man company? Perhaps there is a health issue

    I think it is a 1 person company and they said they were dealing w/a family issue at first but thats no excuse to ghost months of calls/emails and no payments. I think my lesson here is only deal with larger PM companies, and when it starts to go south jump on it sooner.

    Quote from @Theresa Harris

    I'd see if there are other phone numbers to try? Do you have contact info for your tenant so you can contact them directly?

    I asked them about the current tenant and conveniently they were just evicted :/

    Quote from @Lynn McGeein

    this happened to us in Raleigh. It was a single licensed manager with support staff...

    I think this is exactly the issue, they said they had 1 staff member but they quit and the owner has a family emergency... for months

    Quote from @Nehemiah Burney-Porter

    You dont need to lawyer up yet. But you should DEF find another PMG like yesterday

    Agreed, I'd love some recommendations (thanks @Greg Campbell) or the service @Scott Trench is suggesting, but failing that I'll start with something like NARPM.com as @Michael Smythe suggested.

    Thank you all I really appreciate it.@Lynn McGeein@Lynn McGeein

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    Michael Calvey
    Pro Member
    • Head of Sales at BiggerPockets
    • Denver, CO
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    Michael Calvey
    Pro Member
    • Head of Sales at BiggerPockets
    • Denver, CO
    Replied
    Quote from @Scott Trench:

    @Michael Calvey - Could we please refer Sam to all of the property managers in Memphis for him to select from and interview? 

    Sam - we are putting a list of local property managers in markets around the country together for exactly this reason. 

    We plan to launch this in a few weeks, but you need people to interview right away, given that you are likely in process of being robbed. 

     Absolutely. I'll get connect with Sam and get him a list. 

  • Michael Calvey
  • [email protected]
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    Melanie Thomas
    Property Manager
    Pro Member
    • Real Estate Broker
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    Melanie Thomas
    Property Manager
    Pro Member
    • Real Estate Broker
    • San Antonio
    Replied

    I would attempt to locate on social media channels and reach out that way. Sorry you are dealing with this. Perhaps contacting your tenant to find out if they have any additional contact information that you may not. Good luck & happy investing! 

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    Adam Bartomeo
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    Adam Bartomeo
    Property Manager
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    #2 Managing Your Property Contributor
    • Real Estate Broker
    • Cape Coral, FL
    Replied

    Any time that we have a tenant go dark we do a safety check. We sometimes find out that they have been hospitalized or an emergency came up. It sounds like you are in a similar situation. Maybe call the neighboring business to see if the PM still has the doors open. It seems strange that after 5 years they went dark without any notice or communication.

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    Bob Stevens
    Pro Member
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    • Real Estate Consultant
    • Cleveland
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    Bob Stevens
    Pro Member
    #3 Rehabbing & House Flipping Contributor
    • Real Estate Consultant
    • Cleveland
    Replied
    Quote from @Sam Nichols:

    Hi all,

    long time lurker but I've run into a spot of trouble.  I have a property in Memphis that the property manager has been managing fine for > 5 years and they recently became unresponsive to calls/emails and have missed sending payment to me.  My question is what are next steps?  I imagine a lawyer is part of it but I also likely need a new PM and what even is the course of action to get keys/info/etc from the existing (unresponsive) PM?  Best solution would be finding a new PM that can just take care of all of this for an additional fee...

     Why a lawyer, waste of money?  Just hire a new PM. Did you speak with the tenant? If not do it now. Tell them May comes direct to you. Don't stress, it's not that big a deal it will all work out.  Hey, you will save the 10% of the rent next month collecting directly, see looking better already , lol  

  • Bob Stevens
  • User Stats

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    Theresa Harris
    Pro Member
    #3 Managing Your Property Contributor
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    Theresa Harris
    Pro Member
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    Replied

    Well if the current tenant was just evicted and they failed to tell you about any of the problems, it seems like a perfect opportunity to find a new PM!

  • Theresa Harris
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    Wyatt Wolff
    Pro Member
    • Lender
    • Charlotte, NC
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    Wyatt Wolff
    Pro Member
    • Lender
    • Charlotte, NC
    Replied

    @Lorien Rollins thoughts on this? 

  • Wyatt Wolff
  • [email protected]
  • User Stats

    47
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    Replied

    Try calling from a different number, pretend to be someone looking for a property manager for a new property. Once he responds you can proceed to asl about your unit and how to get keys etc. 

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    Matthew Gentile
    • Real Estate Agent
    • Worcester, MA
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    Matthew Gentile
    • Real Estate Agent
    • Worcester, MA
    Replied

    It's a very tough scenario especially if they have been effective for you for a decent amount of time. I concur with everyone, best to check for medical emergency first in this case, after that's been established as NOT the case, definitely time to get yourself into the mix and remove that manager asap. 

    It's unfortunate but this is a hard business some times people just can't cut it even if they've had some success before. Everyone's journey ends a different way, hopefully this can be resolved quickly. Good luck.

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    Grace Gudenkauf
    Pro Member
    • Rental Property Investor
    • Tucson AZ
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    Grace Gudenkauf
    Pro Member
    • Rental Property Investor
    • Tucson AZ
    Replied

    Does your contract list response times or job description/duties? That is absolutely unacceptable and I would look further into your contract to see how you can fire them. Before hiring a lawyer look into all of the paperwork and contracts you sign. You might be able to send a notice and simply be out of the contract. 

  • Grace Gudenkauf
  • User Stats

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    Phil Petite
    Pro Member
    • Investor
    • Memphis, TN
    51
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    Phil Petite
    Pro Member
    • Investor
    • Memphis, TN
    Replied

    Spencer at Lawrence Johnson is excellent, he is my manager for both of my rentals. His communication is good, he can find tenants quickly and does a really good job overall.

  • Phil Petite
  • User Stats

    6
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    Sam Nichols
    • Oakland, CA
    2
    Votes |
    6
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    Sam Nichols
    • Oakland, CA
    Replied

    Thanks all for the advice!  I found a new PM (Advantage Property Management) and am excited to start working with them, so far so great :D

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    Kyle Mccaw
    Agent
    Property Manager
    • Property Manager
    • Keller, TX
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    Kyle Mccaw
    Agent
    Property Manager
    • Property Manager
    • Keller, TX
    Replied

    @Sam Nichols Not a great feeling, I'm sure.

    Easiest option is to find another property manager. Preferably one that answers your calls and emails. Hire him or her and send a notice to the current one of the change.

    • Property Manager TX (#0562767)

    McCaw Property Management Logo

    User Stats

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    Phil Petite
    Pro Member
    • Investor
    • Memphis, TN
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    Phil Petite
    Pro Member
    • Investor
    • Memphis, TN
    Replied
    Quote from @Sam Nichols:

    Thanks all for the advice!  I found a new PM (Advantage Property Management) and am excited to start working with them, so far so great :D


    Glad you found a PM company that fits your needs, Sam! Please let me know how APM is, I had been leaning towards using them for one of my properties :)

  • Phil Petite
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