All Forum Posts by: Mahmuda L.

My management company is charging me one month’s rent plus management fees for the remaining six months after I informed them I need to terminate the contract early. My family will be living in the house. I have been with the company since 2022. They are now demanding nearly $2,800 for termination, despite there being no early termination fee in the contract. They claim this is a standard fee. 

The property was listed for rent after our previous tenant gave a 90-day notice, and they advertised for three months. After significantly lowering the rent, they received one application, which I rejected. Now, they are asserting that because I want to end the contract, they are owed one month’s fee plus six months of management fees. 

I want to know how others handle similar situations. The management contract states it can be ended for cause, and my reason is that the house will be the owner's primary residence, but they claim this is not a valid cause. What should I negotiate?

Thanks for that reply. The whole reason I am looking for my family to be in a different property is because the current house is too old. But my financial situation may not allow me to afford a new 1031 exchange rental and a newer primary residence. In that case, after 1031 exchange, if I can bring my family to the new rental house, that would be good. But it requires the sale of the current house and buying new one. It will easily take 6m or more. And my family only has 3m to move in. Am I blocking myself in here?

Thanks for the feedback. If I sell house to buy primary residence for family, I won't be qualified for 1031 exchange. So I will pay high tax to close the sale and pay big downpayment with higher mortgage rate to buy the PR. How do I lower the expense in this case.

Hi everyone,

I’m reaching out for some guidance regarding my rental property and my family’s housing situation. I own a rental house that’s currently vacant, and this August will mark 5 years of ownership. My mom and siblings are moving to the area and need a place to stay, but I’m facing several challenges.

The management company is charging me a $3,000 fine to end the contract early so my family can move in, but I’m having second thoughts. The house is 115 years old and hasn’t been renovated—only maintained. I’m concerned about my family living in an older house when they could enjoy a newer place elsewhere. If they move in temporarily, I’ll also need to arrange furniture and then move it again later, but that’s not my main concern.

Ideally, I’d like to sell the house and buy a new one for my family, but I’m worried about the 1031 exchange rules since I can’t show them as tenants because my dad will co-own the house and live there. I could keep the rental, rent it out, and look to sell, possibly through the same management company. However, I’m concerned about the higher mortgage rates (currently my mortgage rate is 3.3%, and it will more than double) and the fact that the house barely breaks even while needing significant repairs. Renting it out without improvements isn’t making financial sense either. I could have rented it by the room for more income, but that would require more hassle with advertising, and I’ve struggled to find long-term tenants since the house has 5 bedrooms and 2 bathrooms, which means sharing a bathroom and an old kitchen.

Contractors have suggested that I should demolish the house, but I’m not a serial investor—just a private landlord with a highly technical full-time job. Demolishing is out of my scope. While significant renovations are doable, I don’t have the time or passion to fix this old house when I could buy a newer one instead. Additionally, my family has location restrictions, making it tough to find a nice, affordable single-family home within the time constraints in that area.

I would greatly appreciate any advice on how to navigate this situation. What resources or data should I consider? How can I minimize losses and ideally find a solution that works for my family?

Thank you for your help!

When you are confused about holding onto your out of state rental property or selling it, which professionals help you decide the actions best for you? I am wondering if there is any professional paid consulting service for this matter who can suggest any personal strategy suited for my situation?

Philadelphia has a very long line of getting approved for vouchers. Their waitlist has been closed since 2013. I have had couple families asking me if I have section 8 for this house. I have been reading articles on the pros and cons. Looks like it's not a good idea for landlords to accept section 8 housing. Once voucher starts coming, it's low risk, But getting the first payment might take long time. Even the property managers might be discouraged in dealing with section 8. I have to actually ask this company but most likely they don't want it either.

 I like the high and low risk factor. That's a good way to look at it

Thank you so much for your insights. These gave me a lot more to think about. My property is C type property at best. Well maintained but 100 year old. Inspection said it looked like 20 year old property. I am not in position to advertise and lease myself so need to rely on management company. The listing rent is 2400 for this house. Having 3x rent for monthly income is already a lot. So 4x won't lead me to anyone. It in in a student area but families nearby are middle class mostly if not lower-middle class. Students are already starting their semester so family is the main target. The company gave me good references for maintenance before. So, I was thinking of having a 2 month leasing contract with them. And if they can lease in this 2 month, I was thinking of handing it over to their management. I hope this company doesn't lease just about someone and decide not to manage. I don't know if it's better option to sign management contract instead to avoid this risk. The reason I did not want management contract is if this house is empty for next two months, I am not comfortable keep advertising it. I have someone who can rent room and was gonna default to her if this way of doing it does not work out after 2 months.

About the housing law, not only that I can't have a min credit score, I can't reject someone for not paying rent/utilites during covid (basically last 2.5y). That pretty much covers most of the 4y timeframe for eviction screening allowed. This is such a tough time. I am not open to accepting section 8 tenants either. But previously some section 8 showed interest. The law allows criminal background check, and check for on-time rent payment history. Credit history doesn't reflect rent payment history, there might be additional app for those. And I have to ask if this company use any of those measure.  

I can have first, last and 1 month security which will be a lot for someone to bring anyways. Is it a good idea to have a video call as owner before PM decides to send someone a lease to sign? Or will it be too much interfering? Their leasing contract says, I will have to pay them 1 month rent as leasing fee when they secure a lease but if I reject someone who meets the criteria and is willing to pay rent, I will still have to pay them 1 month leasing fee. I don't know if it would be ideal to have video call and I don't feel comfortable approaching that candidate for some unseen reason. 

I would appreciate any thoughts on this. Thank you.

I posted this forum before they informed me about this fair housing law. I haven't signed contract with the manager yet. I get how, if I was screening as landlord, I can lean toward no eviction. But if I sign the contract, I will have to comply with this law. It's not even company specific :/

This is the manager's clause:

Applicants to make 3x the monthly rent in verifiable net income, no landlord filings or evictions within the past 4 years, and must have a verifiable rental history.

Also manager can rent the property sight unseen. This would mean that the applicants have not physically been to the property but instead, have done a FaceTime tour or had a friend view on their behalf.

Is this a reasonable ask. Or should I add or remove something?