All Forum Posts by: Mathew A.

Great advice, everyone.  I'm going to apply a lot of those techniques.  Thank you.

The SimpliSafe security system seems like great value.  Thank you for that suggestion. 

I have a property that is having issues with squatters and thieves (taking the copper piping and water heater).  The property has been vacant since February.  I have a property manager, but it takes a very long time for anything to get done, and it seems like she can care less about what happens to the property.  I want to switch property managers, but I've already picked the vendors for the work to be done (the majority of the work hasn't started yet, because I've been waiting on a bid for the water heater).  My property manager's only solution to prevent squatters and thieves is to fix up and re-rent the property quickly after tenants move out.  I agree, but that has not happened, and I need a solution to the current problem. 

I'm worried about spending thousands of dollars to fix up the property, and then squatters/thieves/vandals undo all that work.  New windows will also be installed onto the property.  What course of action should I take?   Thank you for any advice.

Exactly.  Everything on my end was done on the up and up, so there is no way I should be liable to pay the property manager.  The new owner will have to pay me the mortgage, and the new owner may have to take legal action to get back the fees from the property manager.

Are we in agreement that the existing management agreement transfers to the new owner?  Or, is the existing management agreement void after the sale?

Or, is the previous owner (me) still liable to pay management fees despite not owning the property?

The PM is just a typical management company that handles day to day operations (does not pay mortgage, taxes, or insurance). The property manager is Match Made Realty in Jacksonville, FL.

Thank you for the replies, so far.

To clarify, I sold the duplex in its entirety with seller financing.  I don't think the contract says, "new owner assumes management agreement."  Isn't that assumed with the sale- like a tenant lease, landscaping contract, pool service, etc.?  Wouldn't they just carry over to the new owner? I will look at the property manager contract, but they usually just include a sale clause for collecting a commission and don't say anything about a new owner having to assume the management agreement.

I agree with everything you said.  The new owner is liable to pay the mortgage payment to me.  If I don't get the full payment, the new owner is in default.  Also, the property manager is in the wrong by taking the fees.  It will be up to the new owner to recoup that money. Right?

I've got myself in a bind, and any guidance would be helpful.

Here's the situation:

I bought a duplex, fixed up one unit, and hired a property manager to manage it.  The church across the street wanted to buy it, and after a few months of negotiation, we eventually agreed on price and terms. The new owner said they would continue with the management, however I didn't have the new owner sign an addendum stating this.  The first mortgage payment was paid to me from the property manager (the new owner must have told the property manager to pay me in lieu of making the mortgage payment himself).  In the second month, it was brought to my attention (being CC'ed on a string of emails) that the new owner did not want to use the property manager anymore. The property manager said to the new owner that I would be liable for the remaining eight months of management fees. The new owner said ok.  After all this, I called the new owner, and the new owner said that he didn't fully understand that there was a contract in place, and that they would backtrack and use the manager for the remaining eight months. I called the property manager and told him this. He said the new owner wasn't acting in good faith and he does not want to manage for the new owner. The manager said that the new owner "repudiated" and that the manager can keep the eight months of fees and not have to manage the property. I'm on the hook for the eight months of fees. The second month's rental proceeds had all eight months of fees deducted, and the remainder ($70) was sent to me in lieu of the mortgage payment ($500).

Can the property manager keep all the fees without managing if the new owner "repudiated" and then backtracked? 

Isn't the new owner still liable for the full mortgage payment? (i.e. The property manager took rents payable to the new owner. The new owner is in default for not paying the mortgage to me.)

Although there wasn't an explicit document, is it implied that the new owner is assuming the management agreement?

I really shouldn't be involved.  I'm just the lender expecting the mortgage payment.

Please offer advice. I know you may not be a lawyer, but you still may be able to help me. Thank you.

I'm selling a house in need of a lot of renovations to a handyman who will do the repairs and live in the house. I never marketed this house for sale. He does work for me, and we just reached an agreement with the following terms:

2 year rent-to-own, then 10 year amortized loan

First 2 years: $600 per month with $225 going to equity ($5400 after 2 years)

After the two years, the sale will go in effect. Sale price: $50,000. $5400 of equity goes toward sale price leaving $44,600 to be financed by me at an 8% interest rate for 10 years (payment becomes $537.54 per month plus taxes and insurance). He will own the house free and clear after 12 years time.

How do I go about getting this done? Can I just use generic contracts I find online? Is it recommended I hire an attorney? If so, what would that cost? Will I need a loan servicer? I'd like to get the agreement set up as easily and cheaply as possible and be in accordance with the law.

Thanks for the replies so far.

Kelly: After taking a look at the leases, giving notice to a MTM unit would be the way to go if there is one.

Dawn: The seller is not occupying any of the units. I would be the new owner-occupant.

Al: Yeah, cash would certainly work, but I don't want to pay if I don't have to. I was thinking that a new owner moving into the building would be allowed to nullify one of the leases to move into a unit.

FHA and VA loans require the owner to move in within 60 days. If none of the leases end within 60 days, then what? Something's gotta give.