All Forum Posts by: Eliot M.

4) keep PM and stay in business relationship with company that I hate

Thanks everybody, for your comments!  I'll try to address most of them here.

@Adrian Mata Yes, I agree it takes work to find a tenant.  But to @Andrew S.'s point, I feel that I have already compensated them for this, for paying them their share of the gross rents for almost a full year now.  I don't think it's fair to pay them twice for 1 tenant.  Make sense?

@Jon Behlke The tenant has signed a 1-year.  They signed with the PM shortly after I contracted with the PM to manage the property.  I agree with your thinking that a contract between me and the PM should not dictate what the PM does to the tenant .  But, they are interpreting my non-renewal with the PM to be also a non-renewal with the tenant (which is not my wish at all), thus trapping me in, essentially.

@Jon Q. and @Kim Younkin thanks for your replies.  Unfortunately, "Firing" them - at least according to their interpretation of our contract - would involve either 1) losing my tenant, or 2) paying the PM $730 to keep the tenant for another year.  Either of those choices are less than ideal, that's why I'm posting here on the boards to see if I might have any legal recourse if I choose to sue.  Basically, it's their contract interpretation against mine, right?  And if an attorney doesn't agree with my interpretation of that language, then I guess I'm either stuck with them, or screwed, it seems?  

@Cindy Meyer I think you may have touched on the relevant point.  Unfortunately there is no "term" in the contract, as I thought there was... just assumed I guess.  Shame on me.  The language says this: "This authority remains in full force until either party gives 60 days written notice to revoke it". (the 'authority' is defined as general PM duties: finding tenants, managing property).  So, I think this may be the language that screws me.  Thoughts?

So basically my options are 

1) fire PM, lose tenant, 

2) fire PM, keep tenant for a fee of $730

3) attempt to sue

@Andrew S. Yes! That's exactly what they are claiming! They are pulling the "I talked to my supervisor" routine and saying they'll "cut me a break" on commissions and instead accept a finders fee of 1 months rent instead. Which is also ridiculous for a finders fee. 

I have considered approaching the tenant directly although it's also in the lease that I can't do that. This is an old RE company that apparently has done their homework on trapping the owner in pretty well. 

One other data point, this is all a moot point if the tenant decides to leave, because then I could severe ties without "punishment".  

Year to year lease.  I'm the owner and the tenant also signed a 1 year lease.  No, if I stayed with the PM, they would receive 10% of gross rents, as currently is the case right now.  But they are saying that if I let our 1 year contract run out without renewing, they will either remove the tenant, or renew the tenant and charge me a full year of commission ( equal to 1 month's rent).

Was wondering if I could get some help on dealing with my Property Manager.  I have been under contract with my property manager for almost 1 year and have decided that it's not worth the money to continue doing business with them.  I have notified them that I will not be renewing the contract with them for 2017 and they proceeded to tell me that THEY WILL REMOVE THE TENANT from the house if I do not renew with them.  We've gone back and forth and I've told them that the tenant is not the problem, and I'm not asking the manager to renew or to terminate, I'm just asking them to basically do nothing until the end of my term with them.  I was planning on contacting the tenant directly and letting them know I was the new landlord and they would be dealing with me directly.  

Essentially, what it comes down to is the contract language.  The manager sent me this language that supposedly states that if I do not continue with them, they will either 1) kick the tenant out, or 2) charge me a finder's fee equal to 1 month's rent.  Here is the contract language:

"It is agreed that if Owner exercises the right to cancel this agreement, then Owner shall be responsible for any and all commissions earned or unearned on any existing lease or extension thereof.  Owner shall owe Agent commission so long as tenant remains in possession."

The way that I interpreted this section is that if I were to cancel with them, I'd owe commission until the end of the 1-yr term.  They are saying that's not the case - that I would owe them for another year, if the tenant stayed.  Are there any attorneys out there, or even landlords that have experienced this before who can give me their OPINION (not legal advice) on this?  I've told them all this seems really icky, that they would actually kick the tenant out just because I (the owner) don't renew with the management company.  Seems like punishment to me.  Please let me know!  

Thanks to all! 

@John Weidner you nailed it!  I shoulda brought my good vibes!

@Matthew Paul I told them it was a flip and that I wanted everything done properly and up to code so I could sell for full retail so I don't want to cut corners. Had some of the guys suggest a cheaper solution and I even said, "No I'd rather do it right and pay a little more." 

They were not there all at once. 

I had an inspection done and a structural inspection done and walked through the house with both copies in hand, outlining what I needed done. 

@Brian Turnbough I should clarify- im not considering having my friend be my GC, but rather my friend's handyman to be my GC. This way, I would have him do the smaller, less specialized stuff and then subbing out the stuff that needs licenses/permits (HVAC, electrical, plumbing, roofing). Yes, I suppose he would still have trouble getting the subs to respond to him but I've gotta try something. Plus he would be local to the job. I'm out of state.

Not saying I'm married to this idea, just brainstorming alternative solutions here. This thing can't drag on forever. 

Does anybody know Alabama law regarding this?  The house is in Alabama.