Property Manager Disaster!!!

22 Replies

I hired a property manager for one of my properties who also found the tenant. The tenant has paid late from day one and property manager has been very lenient so it has only gotten worse. This month she decided that she did not want to deal with the problem and it only been less than 2 months. So she terminated our agreement. We are still within the 30 day term period but she won't tell me if the tenant paid her for the rent and has stopped communicating. Any thoughts that wont get me in trouble? :-)

@Yvette V.,

Check and see if the PM has E & O insurance. Did you ask the tenant to show you a receipt they paid?


Joe Gore

Serve the tenant with an eviction notice, you'll get a response then. Competent property managers are extremely scarce in Atlanta. That's a known fact.

Good property managers are extremely hard to find. It's going to take you a few to find one you can really rely on. It took me 3 but now I have one that has been key for me renting my property stress free. Good luck !

what's PM ?

what's E & O insurance ?

E & O stand for Error and Omission.

Joe Gore

PM means Private Message

bigger pockets email if you will

I think in the situation that Oleg was referring to PM means Property Manager. It's disturbing to me to hear such horror stories regarding property managers...how sad. I hope you find a good one soon. We are out there, I promise :)

Rebecca Lebowitz, Blue Axis Property Management | 585‑216‑5989 | NY Agent # 10311206284

Originally posted by @John Van Uytven:
PM means Private Message

bigger pockets email if you will

Also Property Manager. As in a property manager's errors and omissions insurance policy.

Originally posted by @Yvette V. :
I hired a property manager for one of my properties who also found the tenant. The tenant has paid late from day one and property manager has been very lenient so it has only gotten worse. This month she decided that she did not want to deal with the problem and it only been less than 2 months. So she terminated our agreement. We are still within the 30 day term period but she won't tell me if the tenant paid her for the rent and has stopped communicating. Any thoughts that wont get me in trouble? :-)

What "30 day term period". How long was the tenant there and what rent have you received?

You may have to go the tenant and request the rent. They may tell you it's paid, even if it's not. If there was payment, get proof from the tenant so you can go after the PM.

If the tenant is behind you need to get help filing a quit or pay notice. Don't wait to act on legal paperwork for a late paying tenant.

My mistake

I read the first pm to quickly and thought they ment they were going to send a PM about E &O

sorry about that

a lot of people i know don't know what PM means, i have had to explain that one several times.

Thanks, unfortunately I trusted a PM for the first time ever after 10 years of doing it my self. The only reason was to relieve my self of the responsibility while I worked to accomplish some other things. I don't have to share my feelings now. You can imagine. She made so many mistakes but I continued to work with her thinking about the potential for long term and blaming it on being new to one another. I really wanted and needed the relationship to work. So I could do the same thing with other properties. She kept a positive attitude for a while but finally by the 3rd I'm sorry she said. I was over it. I'm a nice person but this is business. She did not take the full move in amount we agreed on ahead of time and moved the tenants in. Landlords be ware. If you don't have someone that see things the way you do and who will actually follow up with you without your encouragement, you are probably trying to light a fire to a dud. I had to learn for myself. It not that I did not quiz her but she presented her girl next door personality and became Freddie Krueger. It turns out that in this situation a lot of Property Managers do not what to take on a unit like this because they have to come in and clean up the mess. To them it's more work than it's worth.

Thanks BP...I will update you.

thank you so much.

what a property manager's errors and omissions insurance policy should typically include ?

@Yvette V. ,

Wow! That's tough!

I'm not sure if the PM having E&O would help much. Since she's not communicating, how do you find out if she has it? Plus, I'm thinking it would only kick in if there's a suit and she called on it. Since she's new to PMing, I doubt if she has it anyway.

Reading your story, I'm just thinking of the psychology behind it. New property manager, lenient to tenant on move in amount, lenient on late rent, doesn't want to deal with a PM 101 issue...sounds to me like she's extreme in avoiding confrontation.

In that case, I would "pop in" on her and demand an answer to the questions in person. She's not communicating because she doesn't want to deal with you just like she refused to deal with the tenant. Don't give her a choice by showing up unannounced.

Also, giving her the space to tell the truth is important. If you think she might have been misusing the tenants funds, you might want to give the appearance of giving her an out by letting her know you can work something out. Getting to the truth is, of course, the goal.

Most landlords do not screen PM, and it will come back to bite you. Ask for their E & O insurance and they say they don't have E & O tell them to have a good day and keep looking.


Joe Gore

what does this "E&O insurance" include ?

Errors and Omissions insurance is a liability insurance policy, usually for professionals, that covers the harms done if they fail to properly execute their professional obligations.

There's often a risk analysis process that goes into writing that coverage that includes a contract review, just to make sure that the PM (or other professional) is adequately protected from assuming liability. Without getting too technical, the contract you sign with your PM will govern most of your relationship. She would have to violate those terms or break the rules in some way for a claim against her to stick.

Importantly, E&O coverage is just an insurance policy that pays (and defends). If she's done something wrong, you can sue whether or not she has coverage. If she's liable, you can get a judgment. Most reputable professionals carry that coverage to protect themselves, and it's certainly an indicator of professionalism. But failing to have it doesn't absolve them of responsibility, any more than failing to have car insurance absolves a driver from responsibility for an accident.

When choosing a PM you would be wise to check their certifications and their involvement with groups like the National Association of Residential Property Managers or the National Property Managers' Association.

@Yvette V. I'm so sorry you've had such a horrible experience. I'm trying to begin investing in the Atlanta Metro area from a distance and this type of news really doesn't help. Would you mind sharing the name of the company you used? If not here, through PM? I think it's important to ask who has done a good job as well as find out who to avoid and this person is certainly one to be avoided.

Thanks,

Pyrrha

If you want something done correctly, do it yourself....Unfortunately

You can always report them to the licensing board. The board can act on your complaint and they can be forced to pay restitution and loose their license.

Medium rre 1to1 small sizeBill S., Reliant Real Estate, Inc. | 720 207‑8190

@Account Closed see my comment above about the state licensing board.

Medium rre 1to1 small sizeBill S., Reliant Real Estate, Inc. | 720 207‑8190

Originally posted by @Bill S. :
You can always report them to the licensing board. The board can act on your complaint and they can be forced to pay restitution and loose their license.

@Yvette V.

I totally agree with Bill S. It is a requirement in the state of GA to have a salesperson's license in order to perform PM duties.

First, I recommend thoroughly reviewing the contract you signed with her for any recourse options listed therein. If all else fails, definitely report her to the GREC.

You may also want to ask other local landlords here on BP for referrals on good PMs. Good Luck!