All Forum Posts by: Claudia Stewart

 This.

Without question, immediate find another PM. Even if they get a tenant in, what service do they provide per the agreement? How many times will they visit, etc? 
If a business is willing to state something verbally, they should have no problem putting it in writing with the details e.g., “Sounds great! Where is it at in the agreement?”

Same thing happened to me years ago. Bought a new construction in a very hot area (both temperature and housing market). I told the PM numerous times verbally and in emails “It has a sprinkler system. Please make sure it remains on.” The grass? Thick, green carpet. Strong blades. Looked award winning. A couple months later, I made a surprise visit. The grass? Wasteland. Not one blade. Only occasional weeds the size of people. I asked the PM: 

Me: “Why is the grass gone? Why wasn’t the sprinkler system on? Did the tenant turn it off?!”
PM: “Oh, it has a sprinkler system?”
Then a guy sitting down said “Yea you have to water the grass every 6 hours or it will die in 5 days”.

I since sold the home. On Google maps, grass is still gone and I’m not so good shape.

Claudia - I faced a similar situation few years ago with a new construction purchase (unable to get in touch with PM for updates, no lease after 3 months, etc). I was able to get it rented in a month after switching PM companies. Send me a connect request and I can share more details if you'd like.

Sounds like you have selected a PM that may not be fully hands on. The only damages you mentioned is the grass, so, it will be a tough stretch to blame the PM. Are there sprinklers? Is the timer working? Who is responsible for the grass? On and on... 

Based on my experience here might be why these things happened.

Grass - we rely on our landscapers to let us know how the grass is doing, and they are allowed to adjust sprinklers. If you don't have sprinklers than yes, the grass will die without rain.

Lights - Whether you are selling or renting this is going to be a battle. Agents, tenants, contractors, and even employees will forget to turn off the lights.

AC - Contractors will turn down the AC and never turn it up.

Vacant - It is common in todays market to be vacant for months. Most NEW owners are very unreasonable on price because they want the highest price when they should be focused on reducing vacancy.

I hope you have this agreement in writing. If not, your case may be difficult to prove.

They should take responsibility for the lawn, security, and utility abuse. It makes sense to keep A/C on for showings in the summer heat of Dallas, but they could turn it up to 80 degrees. They definitely should turn the lights off and secure the property.

They aren't professionals. Here's what I would do:

1. Start looking for a new PM immediately. I'll provide some suggestions below.

2. At the same time, contact the current PM - in writing - and remind them of their responsibilities. Let them know you intend to hold them liable for the lawn damage and excess utility use. I would also let them know you are looking for a new PM.

3. If they don't make it right, report them to the Texas Real Estate Commission: https://www.trec.texas.gov/public/how-file-complaint

4. Transfer management to a new PM as soon as one is located.

Remember: cheaper doesn't mean you'll make more money.

Start by going to www.narpm.org to search their directory of managers. These are professionals with additional training and a stricter code of ethics. It's no guarantee but it's a good place to start. You can also search Google and read reviews. Try interviewing at least three managers.

1. Ask how many units they manage and how much experience they have. Feel free to inquire about their staff qualifications if it's a larger organization.

2. Review their management agreement. Make sure it explicitly explains the process for termination if you are unhappy with their services, especially if they violate the terms of your agreement.

3. Understand the fees involved and calculate the total cost for an entire year of management so you can compare the different managers. It may sound nice to pay a 6% management fee but the extra fees can add up to be more than the other company that charges 10% with no additional fees. Fees should be clearly stated in writing, easy to understand, and justifiable. Common fees will include a set-up fee, a leasing fee for each turnover or a lease renewal fee, marking up maintenance, retaining late fees, and more. If you ask the manager to justify a fee and he starts hemming and hawing, move on or require them to remove the fee. Don't be afraid to negotiate, particularly if you have a lot of rentals.

4. Review their lease agreement and addenda. Consider all the things that could go wrong and see if the lease addresses them: unauthorized pets or tenants, early termination, security deposit, lease violations, late rent, eviction, lawn maintenance, parking, etc.

5. Don't just read the lease! Ask the manager to explain their process for dealing with maintenance, late rent, evictions, turnover, etc. If they are professional, they can explain this quickly and easily. If they are VERY professional, they will have their processes in writing as verification that policies are enforced equally and fairly by their entire staff.

6. Ask to speak with some of their current owners and current/former tenants. You can also check their reviews online at Google, Facebook, or Yelp. Just remember: most negative reviews are written by problematic tenants. A tenant complaining online might indicate that the property manager handled them appropriately, so be sure to ask the manager for their side of the story.

7. Look at their marketing strategy. Are they doing everything possible to expose properties to the broadest possible market? Are their listings detailed with good-quality photos? Can they prove how long it takes to rent a vacant property?

This isn't inclusive but should give you a good start. If you have specific questions about property management, I'll be happy to help!

Somewhat unusual, but not surprising.  Sorry for the trouble.  PM is a challenge.

Not sure why you need turnkey to buy new construction, but what is done is done.

I would think almost new construction in DFW has a sprinkler system.  Kind of set it and forget it.  Did you get a sprinkler system?  If not probably good idea to install to protect your foundation.  Get a lockable controller and set it and lock it, so tenants don't turn it off.  PM can adjust during the winter as needed.  You still need to water during the winter to protect your foundation, even when the grass is dormant.   The best system will include today, soaker hoses to water foundation, not just spray heads.

If there is no sprinkler, I would think it is not easy or cheap to hire someone to water.  Probably a good solution on a new lawn would be a system of hoses or PVC setup of sprinklers on some kind of timer. Maybe they are out there, but I just can't think of any lawn service that is going to go by 3-4-5 times a week to turn off and on and move around sprinklers to get your sod going.

If it is Bermuda, there is some chance you can start watering the heck out of it and it will survive.  Right now is probably prime growing season when it starts to cool off a bit, but water, fertilizer and weed killer, and weekly mowing is key.

Some PMs are great some not great, some are horrible.  All your issues are pretty common.  Do they allow self showings or require an agent to be present?  Agents tend to lock stuff up.  Personally I would never use a PM that allows self showings as stuff like this is common.  Next thing you know someone will move in and squat on you.  Can they go by and check lights and thermostat after every showing?  Probably not, without a fee.  I would make sure they have a blue ibox on the property, not a Rently or combo box on it.  That's to their advantage, not yours.

My guess is damage will be tough to recover.  Do you have grounds to terminate PM and change?  Maybe?  I would ask for a no fee termination and get a new PM if you are unhappy.  This is the honeymoon period, doesn't get any better than this.  Also just FYI there are some PM companies the tenants are now well known to tenants.  They call and ask who is the PM.  If it is X company they have no interest.  Same with me, they don't answer the phone, don't return calls, every property I have gone to is dirty and not rent ready.  Nice people, knowledgeable people, but less diligent on the PM side.  If I'm calling them it is because I have a tenant that wants to rent.  If I can't get info quickly, then we just move on.

Call their tenant line.  See if anyone answers.  See if anyone calls back.  Visit the website, leave an inquiry.  See if anyone returns the email/text.  That's another test for you.

Where is the property?

@Claudia Stewart

If it was in the agreement or discussed I would get them to take care of it then send them termination letter due to leaving property unlocked etc

Hopefully you have a tenant in there now

If lawn care was part of the Agreement, then that's unacceptable.

Property not being secured is unacceptable.

AC and lights on....we'll that's expected. It's the summer. You can have the AC off if you're showing properties to prospective tenants.