All Forum Posts by: Andrew B.

Quote from @Michael Smythe:

@Ian Walsh thanks for chiming in!

@Andrew B. it's no different than AirBnb contracts. A host signs a contract with AriBnb and so does a Guest, but there is no direct contract between the Host & the Guest.

Most states require a lease to identify the owner of a leased property, whether a person, trust, LLC, IRA, etc.

Landlord = Lord of the Land = Owner per deed

Agent = someone legally representing the owner

Property Manager = Agent

The Landlord does NOT sign the lease with a tenant, so how are they part of that contract?

If you fire your PM, does your lease become invalid? No. The PM signs the lease as your agent. His signature is acting as though it was your signature. The agreement is still with you. 

If what you said was true, then you could fire the PM and lose your ability to collect that late fee. That does not happen. 

Quote from @Michael Smythe:

@Andrew B. the LEASE is between the PMC, acting as legal agent for the owner, and the tenant.

So, there is, in fact, a separate agreement between the PMC and tenant. 

 That's still incorrect. The agreement is between the tenant and the landlord. The PM company is acting as your agent. 

Quote from @C Michael Sundius:

right, but this is a bit different, no? the fee is solely a agreement between the property manager and the tenant. whereas, the property manager is a fiduciary and the owner's interest should be put before themselves. 

If the owner doesn't care the rent is late or is disappointed the has not yet submitted a 3day notice. why should the landlord be out his money. 

 thats not correct. There should be no seperate agreement between the management company and the tenant. The late fee is payable to the landlord and outlined in the lease. Your agreement with the PM then states that they get the late fee as payment for the extra work done to collect late rent. 

Do you have a property manager who checks out the property periodically? If the answer is no, then you are doing an extreme disservice to your business by not checking in on the property. How do you know they didn't strip out and sell all the plumbing or appliances? How do you know there isn't an unreported water leak rotting out the floors? How do you know there isn't a meth lab in the basement? You dont know. Go check on the property.

If the damage creates a safety hazard they have an obligation to fix it. This sounds like a great landlord who wants to take good care of his/her property. There is a lot of crappy landlords out there that would happily let you put your life at risk to save a buck. 

If the damage was not caused by you, it is perfectly reasonable to ask for some compensation. Maybe a night or two in a hotel room while work is being done. Otherwise my best advice is to let them do the work. 

If you have an existing lease, you must honor it until the lease expires. At renewal, you can increase rates but you must also confirm you can do that as some local laws restrict your from increasing rent too much (rent control). 

This is pretty commonly known as possible. It's not even an apartments.com thing, its a legal thing linked to every electronic ach payment. No website has any way around it, and it is out of their hands. It is true that your only true recourse will be to sue the tenant. This is why tenant screening is so important. 

If the microwave is an appliance provided with the unit the landlord is responsible for costs to maintain and/or replace it as long as the cause is reasonable wear and tear and provided the unit has not exceeded it's useful life. In simple terms, if you broke it you pay for it. If it has worn out over time, landlord pays for it. 

Some towns have free or reduced price legal aid for tenants. Try that first. If not, there is a legal process where you withhold rent by putting it in an escrow account. You could look up that info for your area, and start that process. The threat of withholding rent may get some quicker action. 

If your deductions are reasonable and legally justified (it sounds like they are) bill the tenant and wait and see if they file suit. Most wont unless you are screwing them over. A reasonable tenant will realize the costs are justified and choose not to waste their time in court. 

If the tenant files suit, you can offer them a small settlement like $500 to avoid the trouble. You can also show up in court yourself since it is small claims.