BiggerPockets

Okay here's the situation, I hired a property management company to find tenants and sign a one year lease with the management company.. the lease was up in July and from there they go on month to month (correct me if im wrong)... so I emailed the property management company on September 30 to say that I want to cancel my service they're providing and become the landlord for the tenants.. but I get an email back saying that the tenants are going to move out on Oct. 4?!?! Which is 2 days away! I haven't call the property management company yet because I got the email late but I will call in the morning.. My question is do they still have to notify me that the tenants are moving out 30 days before? And they are still collecting a property management fee out of the monthly rent so they are supposed to still work for me and let me know this situation correct? I mean it puts me in a bind because I have to find replacement renters in 2 days???!!

I am a full time PM and would agre with the other post that you meed to read your agreement carefully - but regardless they should treat you like a valbuale clein and communicate thinhgs early and offen - we work very hard at communications and it is a never ending battle - I would call and see if you can work out or terminate

Mike

Okay I talked to the property management person and he said that the tenants gave a written notice and that Property Management should of mailed, called, or emailed a letter stating that the tenants are vacating the premises. I told him that I didn't receive any notice (email, calls, or mail) from them and was getting upset because in the past year only 2 small incidents occurred at the property (grass/leaks) which Property Management called my cell and emailed me the issues, however now since the tenants were moving out they failed to contact me about this very important situation. In the lease agreement it states that they need to contact me about the 30 day notice from the tenants. I'm in a bind because the mortgage is due and renters are leaving in 1 day. What can/should I do?

You should not be in a bind. Vacancies are a normal part of the rental business. You should try to find new tenants and you should pay all the bills associated with the vacant rental from the money you've saved from the income that is allocated to paying operating expenses.

On another issue, tenants should not be allowed to move out on the 4th without paying that month's rent. That virtually guarantees that you will have a month of vacancy. If the PM allowed that, they screwed up!

Good Luck,

Mike

Well here's issue, the tenants notified PM about there 30 day notice.. however the PM didn't notify me about them leaving the premises... So is PM held accountable? And since they are leaving on the 4th they just have to pay for the days they stayed for the 4 days correct? Im just upset that I wasn't notified about tenants leaving from PM and I could of already started the process of finding renters.. isn't that a breach of contract?

Again, what does your lease say? Mine does convert to month-to-month after the lease term is up. And, it required 30 days notice. However it also says you can only move out at the end of the month. So, with my lease, you could not move out on the 4th and only pay four days, even if you gave notice on the 4th of Sept. You would have to pay the full October rent.

If he had given notice on 9/4, I would have started advertising it right away. You really have to plan for some turnover time. Unless its spotless, its hard to get a new tenant in with zero work. So, if I had found someone who would move in on, say, 10/15, the old tenant would have only had to pay until until that date. If they didn't pay, it would come out of the security deposit. If the security deposit didn't cover the rent that wasn't paid, and any damages, it would go do small claims court (assuming the damage isn't too bad.) If I didn't get a check for a full months rent by the October due date, an eviction gets filed.

But, this all comes back to your lease. If it just says 30 days notice is sufficient, then they did the right thing, and you have no claim against the tenant. The PM should have taken care of getting a new tenant. You would still be out at least part of a month's rent. That's just part of this business, and you have to expect that. Further, if you PM is like many, they have a leaseup fee from a half to a full months rent. Just have to account for all these costs in your planning.

OK, so there's something to change in your lease. 30 days notice before the end of the month they're moving out. Moveouts at the end of the month, not the beginning.

What does the agreement with the PM say? Are you supposed to be notified? I would think you should be, since that means a loss of income and a rent-up fee. If they didn't notify up in accordance with the agreement, you may have cause for action against them. I would have expected them to start trying to get a new tenant as soon as the notice was given. If they didn't, and your agreement indicates they should have, you at least have cause for complaint.

It all comes down to the agreement with the PM.

Have you put up a yard sign? If not, that would be the very first thing I did Saturday morning. Have you had a look to see how much work's going to be needed?