Property manager refusing to send ex-tenant to collection because I've found a new PM

Property manager refusing to send ex-tenant to collection because I've found a new PM

Member since 2019 · 3 posts · 2 votes

Hi all, I have a rental in MO that was trashed by its last tenants in August, and has cost ~$20k to make ready.

My PM at the time was adamant about sending the tenants to collections once we had a clear idea of the figure they're responsible for, which is about $10k. In the 2 months since, they've warned the ex-tenants multiple times over email that they'll be sent to collection if they don't pay, and they haven't.

In the meantime, I've come to realise the PM is incredibly incompetent and unreliable, and have found a new one.

But now that I've given notice that I'm switching this month, the old PM is outright refusing to send the ex-tenants to collections as they are "no longer under contract, our partnership is considered terminated and we are not able to represent you in any way."

The new PM says this isn't something they can help with and won't be getting involved, so I feel completely let down and abandoned by the old PM, and at a loss as to what to do.

  1. - Is this a reasonable stance for the original PM to take?
  2. - Can I force them to send the tenants to collection?
  3. - Can I send them to collections myself as a last resort?


For context, I'm an out-of-country investor who tries to be as hands-off as possible.

0Reply
27 views

Most Popular Reply

Nathan GesnerBusiness Member
Moderator
Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
1y
Quote from @Sam Quirke:

1. They no longer work for you, so monitoring a collection action is not their responsibility.

2. The new PM has nothing to do with the old tenant, so it's not their responsibility.

3. If either of them were to stay involved, it could cost you money and you would collect less.

Send it to collections yourself. Send me a DM and I'll give you a recommendation or you can find one on your own.

The DIY Landlord Book4.7248 Reviews
See this reply in the discussion

5 Replies

Jump to latestLatest
  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    1y
    Quote from @Sam Quirke:

    1. They no longer work for you, so monitoring a collection action is not their responsibility.

    2. The new PM has nothing to do with the old tenant, so it's not their responsibility.

    3. If either of them were to stay involved, it could cost you money and you would collect less.

    Send it to collections yourself. Send me a DM and I'll give you a recommendation or you can find one on your own.

    The DIY Landlord Book4.7248 Reviews
  • Adam BartomeoBusiness Member
    Real Estate Broker · Cape Coral, FL · Member since 2015 · 2k+ posts · 1k+ votes
    1y

    1. Yes, it is.

    2. I don't see how or why you would want to.

    3. You can definitely put them in collections and seek a judgement.

  • Member since 2019 · 3 posts · 2 votes
    1y
    Quote from @Adam Bartomeo:

    1. Yes, it is.

    2. I don't see how or why you would want to.

    3. You can definitely put them in collections and seek a judgement.


     Thanks Adam, this is clear.

    With a view to putting them in collections myself / seeking a judgement > is this "doable" when I'm based in Europe? Is there a no win / no fee type of service I should be searching for?  

  • Adam BartomeoBusiness Member
    Real Estate Broker · Cape Coral, FL · Member since 2015 · 2k+ posts · 1k+ votes
    1y
    Quote from @Sam Quirke:
    Quote from @Adam Bartomeo:

    1. Yes, it is.

    2. I don't see how or why you would want to.

    3. You can definitely put them in collections and seek a judgement.

    Collections should be able to be done anywhere. They only get paid if they collect.

     Thanks Adam, this is clear.

    With a view to putting them in collections myself / seeking a judgement > is this "doable" when I'm based in Europe? Is there a no win / no fee type of service I should be searching for?  


  • Michael SmytheBusiness Member
    Real Estate Agent · Metro Detroit · Member since 2023 · 4k+ posts · 3k+ votes
    1y

    @Sam Quirke many PMCs don't get involved in collections whatsoever!

    You may want to check the management contract with your new PMC, to see if they offer collections services.

    All you can do at this time is pursue your own collection efforts. Hopefully, your previous PMC made the necessary documentation available to you.

    Logical Property Management4.9446 Reviews
Join the conversationCreate a free account to reply, vote on answers and follow this thread.