We moved to a new state, and rather than sell our house, we rented it. The rental market is good, and we knew we didn't want to buy right away in the new location. We have a professional realtor whom we pay monthly to manage our property. He checks prospective tenants' credit reports and criminal history, collects rent, does small repairs, and basically checks on the property from time to time - the usual stuff. All that is fine.
My question concerns larger issues and I'd love to hear from any of you who have rented a house that you own, that is managed by a professional other than yourself.
There are some things that concern my husband and I (neither one of us is experienced in real estate).
1. One month last year, the tenant could not pay, and the property manager (he's a very kind-hearted man) personally lent him funds from his own accounts to cover the rent, but did not tell us this. The tenant fell behind the next month too, and the property manager met with him to set up repayments, all without informing us or consulting with us. This tenant is otherwise a good tenant (no property damage, etc).
2. The tenant was unable to pay on time this month too. When the rent due date came and went, I texted the property manager and got a rather nonchalant response. I asked "when will the tenant pay" and he replied "ASAP????", which really doesn't tell me if he's contacted the tenant, has a plan in place to deal with the late rent, etc.
3. We had a major repair last year. We had to replace the garage door, and the manager said one of his associates (he doesn't have a staff, but has a trusted group of repair persons who do repair work for him) could have the door removed and replaced promptly. My husband reviewed the price quote and found it to be very reasonable so we told him to go ahead, and sent the manager a check. However, we never got a photo of the finished work, nor a receipt, nor the paperwork (who installed it, any warranty, one of those "congratulations on your decision to purchase an XYZ quality garage door" documents that come with every major appliance and things like roofs and doors). I asked the manager for all that, and stated that I keep careful records of major home purchases and repairs, and he casually said something to the effect of "oh, Bob's a good guy, that door is good, he probably left the paperwork in the garage, but I'll try to get that for you". I do know that the door was replaced and looks good, as I am still friends with the neighbor across the street from the rental house. But I don't know who manufactured it, what kind of door it is, who "Bob is, etc.
4. My husband emailed the manager a specific letter, asking to be kept informed in a more formal, consistent, written way, last week. Yet this month, the rent is late, and now we find out (a week late) that the tenant has paid half the rent and plans to pay the other half "sometime soon". But the manager told me on the phone that he talked with the tenant and gave him lots of advice about getting his degree, looking for a better job, all kinds of personal counsel. And the manager did not tell us this, as we had asked in the letter. We simply checked the account that we keep for rent, and saw half the usual amount had been deposited, without any information from the realtor. He did not acknowledge the email.
5. We have never received a written monthly report, or quarterly, or semi-annual, or annual report, of what the property manager has done. We do get a simple typed year end statement of rents received and expenses paid, for tax purposes, but it's not itemized.
So, are we expecting too much? Do property managers consult with "regular landlords" like us (not investors, not major apartment owners, etc, just people who can't sell their house yet and want to rent it out in the meantime? Should he communicate with us if rent is late, and have a firm plan, or are we stepping on his toes and his job? Should he send us reports or do we just blithely assume that he's doing what needs to be done? Is it ok for him to lend the tenant money? (We do not know this tenant, neither does the property manager, except as a tenant. In other words, he's nobody's nephew or brother or dear friend).
We can't visit this house, we live several states away. What is your impression of this arrangement? My husband wants to fire this guy, but it's hard to choose a new property manager from so far away. Thanks for any insight.
You need a different property manager. At no time do I ever lend money, wave fees, etc.. It snowballs and sets this precident.
The thing about property managers is that you have to be able to trust them to Manage. Sometimes that means you don't need to concern yourself as much, but sometimes it means you have to replace the manager.
Considering all the things you just listed, it is time to replace your manager. One thing could be brushed off, but all the things add up to not being competent to do the job.
Even absentee landlording requires visiting your property a couple times per year. More often if big issues like this come up. Unless you have a seriously compelling reason to not do so, I think you need to sell this house (not with this realtor!) and get away from a situation that is problematic due to distance, time or financial constraints.
Fire this guy ASAP and get another management company. Join Angie's List or read through reviews on companies in that area.
Sounds like this realtor has no experience managing a home for someone else. He should not be paying the tenants rent and not telling you. If this tenant stop paying altogether tomorrow it will take you longer to evict them for non payment since there is no record of it prior. He should be sending late notices, etc. each time they are behind and keeping record of all of it.
The same with the garage door. There should have been before and after pictures (since you're in another state) and the proper paperwork. It was probably done by someone needed money, so you should hope it was done correctly. Remember if the tenant was to get hurt by a faulty garage door you are libel for the damages.
I am a landlord with properties in PA and FL. I use this website to get info and to talk with other landlords (they have a section to ask questions). It may help you find a better management company in the area you need.
https://www.ezlandlordforms.com/
You should also find a trusted contractor to handle small jobs and to help with finding or over seeing reputable companies to do big jobs.
Your husband is correct. You need to fire this person and hire a person who manages property for a living. When the manager fronted money for rent that send a message to the tenant that late and partial payments are ok. It goes with the line of thinking that no good deed goes unpunished. We have a duplex and every single time we cut a tenant a break it turns around to bite us in the butt.
Mind your own business. That property is your business. This means you need to suck it up and do what you need to do. It will cost you more money the longer you wait to have someone professional managing your property.
Get the money needed to handlt this matter effectively and efficiently.
Step 1. Check on your property.
Step 2: Find a New property manager - one with experience and that manages other properties. Ask for references.
Step 3. Fire the current property manager and change ALL locks.
Step 4: Hire the new manager.
Step 5. Let your tenants know the property is under new management.
You may also consider not having a wait time between releasing this property manager and the new property manager. Have the tenants mail you the rent with the understanding that there will be new management forth coming.
There should be frequent consistent communication about your property. I would also have some handimen and licensed contractors to refer the property manager too with an account set up to handle any expenses that may come up.
On this matter I say, LISTEN to your husband. and fire this guy. It's not hard to find someone from far away you just need to be more savvy about what you are doing and you will need to go there for at least 1 day at any expense to handle your business and get it straight. You may be able to get this completely done using 1 business day and a weekend, if you have done your ground work from you current location.
You're definitely being cheated. I don't know if the manager is inexperienced, incompetent, or devious. He either pocketed the rent money from the tenant himself, or if he did lend the tenant the money, it's because he has (or wants to have) some sort of personal relationship with the tenant (girlfriend, brother, even drug dealer).
I agree you need to fire this person for failing to adhere to the job description, but I think you need to be careful that he doesn't take any action against your property out of spite or malice. I think at least one of you is going to have to go back to that house - to get the keys from the manager, to interview and choose a new property manager (and get references and a written contract), and consult a lawyer about how to evict this tenant (if in fact the tenant hasn't paid - which you must verify) and get the money you are owed (by the manager or the tenant). You may be able to threaten legal action in the court in state where this house is, based on the language of your contract with this manager and subsequent emails/correspondence. But you need all your ducks in a row. It's going to cost you some (you can find out about going for legal fees) but you're already losing money for back rent so it may be worth your while.
I agree, time for a new manager. I own a building but I currently live there. Being a landlord is not fun. Right now, the co owner lives in the other apartment so I have not had to deal with it for a few years. A few years ago, we spoke to our realtor about the best way to manage. We were at the time looking at buying a single family home. She said it is important to keep really good records and to keep a distance between landlord and friend if you and your tenant happen to get along very well. It sounds like your manager is either lazy or does not know how to properly manage a place and he became friends with the tenant. If he borrows money to someone to pay their rent, that is his problem. As long as you get it. But you should have record of when the tenant is late. I assume the rent is due on the 1st. If it is paid on the 3rd, you should know that. You should also be able to request copies of rent reciepts--even if the tenant pays by check. It will show when the payment was received. And you should always be kept up to date on all issues that may come up.
NEVER NEVER pay for a repair until the work in done. For heaven's sake. You wouldn't do that if you were living in the house, mama. And you pay the actual person who did the work - NOT the property manager. This property manager, who is out money from his idiotic decision to lend money to your tenant, has kept your money.
Even if the people came and fixed the door, he might not give them the money and then the repair people could put a lien on your house for non-payment.
You will have to get a real estate lawyer to evict these people. The real estate agent should be able to find you another property manager. This one is not professional, and is too buddy-buddy with the people who are not paying you.
You might live several states away, but you need to get over there and see your house at least once a year. Every 6 months is better.
We did the same thing you did when we moved to a new state, and we also have a property manager that has been great. He communicates to us every month if he got full rent, if any problems arose, or if anything needs to be fixed. He is allowed to fix or have fixed anything under $250. If it's over, he consults us first. We visit our house personally 2-3 times per year, especially if there's a major repair.
Fire this guy, go to the house and find someone else. Stay in town a few days, meet them, check on the house, meet the tenants, etc. You are the owners and should be involved in what's going on with your property no matter what the property manager does. If it's impossible, you need to sell it.
A realtor and a property manager aren't the same thing. I would use a professional property management firm that does nothing else but manage rental properties on landlords' behalfs. You will need to travel to do that. I can't see hiring a property manager you haven't met, and I can't see hiring one without walking through the property with that person.
I also would want to visit to ensure that the current realtor/property manager has actually replaced that garage door, kept the house in good condition etc. Sorry, but it sounds like you hired a guy who wants to do things on the cheap with his buddies doing the work and -- most important of all -- who can't produce documents YOU might need one day in any dispute with a tenant. It's not professional of him or of you as the landlords. He might be a lovely guy who kindly lends money to cash-strapped tenants, but that doesn't mean you should trust him with a major investment, and your rental property is just that.
Even if you do get a more professional manager, I still would agree with others below: Unless you somehow really must have this rental income to meet your own bills, sell this house and be done with being a landlord from so far away.
Get a property management company that that is all they do basically is manager property. Depending on the laws in that state, on the 3rd day the tenant should be receiving notice from the property manager without you having to "Call" about it.
And sell the house. If you want rental property - buy rental property close to you.
E.,
What does your contract say about his general duties, requirements to inform you, etc.? How long are you contracted with this manager? Are there any penalties for early termination of the contract? Under what conditions can either party terminate the contract?
These are questions you and your husband should be discussing. Start with your contract, and see how soon and how quickly you can legally part ways with this guy and get a proper management company to do this for you. It's just too much hassle being so far away.
It would be one thing if you lived closer, or if you could easily travel to your prior home, but that doesn't sound practical in your case. It seems like you need someone who will be more professional, more responsible, and more responsive to you as the homeowner.
Hope you can get this straightened out soon.
J. F.
What an awful situation. I don't have much to add to what some of the other ladies have told you, but just wanted to say that we have 4 rental homes and will be converting our long-term residence into a rental in 6 weeks, and I will be adding that to my list of properties I manage. I can't imagine letting such a sloppy PM continue to work for you. He's not doing his duties at all. If you were to get audited by the IRS, how are you going to prove that the repairs you are deducting have actually been done if your PM isn't keeping records?
Quickly, quickly hire someone else.
My short answer is, HE works for YOU! He sounds pretty unprofessional, or at the least, inexperienced. I would send him a letter detailing everything you're unhappy with, and letting him know things need to change effective immediately, or you will find a new property manager to replace him. Preferably a property management company. Good luck!
They aren't your employee they do a task for you. I would not want to know any of the details you are asking for.
If you want more get another manager. I'd say if the work is done who cares what the other stuff is. If you are getting your rent then why do you care who's pocket it comes out of? If this tenant isn't a good tenant then evict them and get another.
