All Forum Posts by: Tyler Segebarth

In May of this year, I reached out to a property management company I had worked with in the past to inform them that I had a property becoming available and to request a Lease Option Only service (essentially where they find a tenant and I self-manage from there). The property manager assured me that there would be no issues and that he would initiate the process. However, I never received a contract or any paperwork from him. The property was listed and remained vacant for two months before a viable tenant was found. Once the tenant was identified, I was notified that they would be paying and signing the lease on August 2.

I reached out to the property manager on August 2 via email to confirm whether they still planned to sign. She responded later that evening, stating that the payment had been made and that the lease should be available in the portal. This confused me as I had not yet signed a lease with the tenant. It was at this point that I realized something had gone wrong.

Yesterday, the Manager called me and it became clear that they had leased the property to the tenant without my written consent. The lease that the tenant had signed was between the property manager and the tenant. My name is not in the lease at all. I had not signed any agreement authorizing management services for the property.  While there was a verbal understanding that I intended to proceed with the Lease Only Option, no formal agreement was in place. They then informed me that I could either move forward with the management services, with a nominal discount of $110 for the error, or revert to the Lease Only Option and have the lease transferred to me without any security deposit, as none was collected by the property manager.

This mistake has left me in a difficult position. I must choose between incurring substantial management fees each year or self-managing the property as I originally intended, but without the security that a deposit typically provides.

In curious if anyone knows what my legal options would be here. Do I have a case against the property manager?

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Jacksonville.

Purchase price: $85,000
Cash invested: $6,975

My first Deal! A house hack in Jacksonville NC. I am currently living for free and getting $140 in cashflow every month.

@Cody Thomas Were you ever able to get contact info for any log home builders in the Boone area? I am currently under contract on a log duplex that is needing a little work. So far, everyone I have called is too busy to have a look at it.

@Jenna Bamlet

Hey Jenna,

My dad and I own and operate a small contracting business out of Jacksonville. We do some residential as well as some commercial construction and repair. If you’d like, we can come and take a look at what you want to have done. Feel free to PM me!

@Marshall Brown

Hi Marshall,

Welcome to Jacksonville!! I’m a house hacker in Jacksonville as well. I bought a small duplex in January, and while I don’t make a ton in cash flow every month, the rent savings alone is fantastic! Don’t forget that the main reason we house hack is for the rent savings!!

@Craig Curelop

Thanks Craig! They seem really nice  so I don’t expect any issues. I didn’t even think of splitting the utilities in thirds but that totally makes sense. 

@Jordan Aibel

Awesome! Front loading them with that information will be super helpful. I'm glad it worked out for you. I haven't actually met the couple yet, so I think I'll go ahead and have them complete an application and show them the property. I'll get a chance to meet them and form a first impression. Thanks!!

@Aaron K.
You definitely have a valid point, but I think it might be awkward if potential arguments/disputes arise. Maybe I'm overreacting though...

Hey BP,

I recently finished rehabbing my first house hack and I plan on moving in very soon. The property is a duplex with 2 bedrooms and 1 bath on each side. I have inherited tenants in one side, and I will be getting roommates for the side that I’m going to be living in. I have a few potential tenants, but the ones that are most interested are a male and female couple. I’m curious if any other house hackers out there have lived with a couple. I’m thinking it might be a little awkward, but I’m interested to hear what you guys think.

@Jonathan Greene

That's certainly something to consider

Thanks!