All Forum Posts by: Darren Carnes

@Drew Sygit

My PM's lease isn't identical to mine, they claim to have acted as a clients agent before and went to court against a tenant and a judge wouldn't hear it because they didn't have a lease with the tenant. I'm not sure I 100% believe that but that's what my PM is telling me.

The tenants real issue I feel is they are paying under market rent and now realize with a professional management team in place they are going to get brought up to market rent. They won't admit it to me but that is the only thing I can think of.(which won't happen until their current leases expire) When I ask them why they won't sign and why two of them hung up on my new PM and the other told them off on the phone, they just say they didn't sign up to be managed by them. Or one said she wouldn't have taken the store space if it was a PM doing the original leasing. My pizza restaurant in my building has been there for 29 years, her original lease was $300 a month and had only been raised $50 in 29 years for an example on the rent situation. I raised it $50 when I took over ownership, my plan was to slow roll her increases in hopes she is only there for another year since she's 80, but after we signed a lease she talking like she has 3 or 4 more years! Lol

I appreciate you response!

@Rodney Sums

I agree, I'm sure it wouldn't be identical. The PM is telling me they have to have it to legally represent me. I am going to have them speak to their attorney. I also presented this situation to my attorney and they have given me the same advice I've found here, that we can't force them to sign a new lease right now. However they should want to get along with the PM in my opinion since that's who is going to make the new lease and any rent increases at the end of current leases. This is commercial and these are two retail stores and one pizza restaurant that are having the issues.

I appreciate all the responses!

@Nathan G.

That's going to be my final communication with the tenants. "Ive hired this PM to manage the property follow what they say and you're good."

I didn't realize the drama that was going to come from this. Hopefully its the last of it and this investment becomes more passive for me!

@Tracy Streich

OK, that's kind of what I wondering. I'm assuming my PM just has never ran into tenants who don't want to sign before. I'm going to pass that along to my PM that they just need to follow my lease for the remainder and then after that it's whatever they want. However I do plan on telling my tenants before I break all communication that once it's time to renew, this PM is who they will be doing it with so be smart. Maybe that will get them to just play ball. Thanks

@Ben Scott

Well they wouldn't be renewing the lease, the PM just wants a signed lease with their company incase they need to evict or take them to court. They told me then they would have the authority to handle all of it. They said in 20 years they've never had the response my tenants are giving them.

@Scott Mac

I suspect one tenant has a bad attitude about the property manager and has them all concerned their rent is going to get raised. Even though I have told all of them their active leases will be mirrored and nothing will change. My PM wants to evict if they won't sign but I'm not sure the legality of that if they're not technically breaking my current lease with them.

@Ben Scott

They have been paying and haven't missed rent yet. I'm not sure what their concern is with the property manager.

I have a 5 unit commercial property that currently has 3 tenants. I have been spending a lot of time renovating the other 2 units and decided to hire property management for the building. My new PM wants the 3 tenants to sign new leases with them that keep the same requirements of my active leases with them. So essentially mirror my lease, they say they need this to be able to evict and go to court if needed. I'm fine with it, however my 3 tenants have ganged up and refuse to sign the lease with the new PM. They threw a fit today calling me, telling me they're not signing and they don't want the locks changed, and they don't want to be managed by this PM. I informed them it is already done and is happening.

Has anyone ever dealt with this? My PM wants to evict them if they won't sign their lease. I'm not sure if they can or not. I'm going over there to talk with my tenants and see why they won't sign since nothing changes with that lease...it's just for liability.