Property manager acting like they own my property - help...

Property manager acting like they own my property - help...

Investor · Carolina Beach, NC · Member since 2015 · 2 posts · 0 votes

Hi - I own a vacation rental property (short term rental) and this is the first time I've worked with a property manager. Essentially, from the moment I signed the agreement, I feel like I've just handed over the keys to my property and have lost all control over it. I need to know if this is just how it works or if this is out of the ordinary. Some of my issues:

  • My monthly income statements are incomplete. The property manager takes money off the top and the statements list only what is left over as "gross rental income" and then shows the commission charged. There's no explanation of where the $200 taken off the top goes. I asked and was basically given a "don't worry your pretty little head about it" answer, that those are just "fees for doing business." Is this normal? ...I expected an itemization, just as I tracked when I was managing the property -- $XXXX is the total collected from the tenant, minus...taxes, cleaning fee, damage insurance, etc. *NOTE* Our contract provides zero information on those fees/charges. Am I in the right to demand these details? Otherwise, what's to keep them from taking whatever they feel like off the top?
  • On the topic of fees, our agreement does say that the commission includes the cost of cleaning (which is why I agreed to a commission that's a bit higher than average in this market), but on their reservation site, I noticed they are charging the tenants a cleaning fee (which is basically just subtracted out of the total rental rate -- meaning I'm technically paying for it since it's money I'd have otherwise gotten). They insist this is allowable as their "business expense" -- am I crazy, or does this seem contrary to the agreement?
  • If I want to stay at my own property for more than 14 days during the peak season -- even if it's to do repairs/maintenance -- the property manager is saying that I must pay them commission based on the current rental rate . And ANYTIME a friend or family member stays there, they are saying I have to pay commission. Their commission is also 25%, so it's no drop in the bucket. Is this customary?
  • I reserved an owner stay recently and requested an early check-in. Check-out is 10 and there was a tenant staying, so I just wanted the prop mgr to prioritize the cleaning so that I could get in around noon. They denied my request, telling me I can check in at the normal check-in time (i.e. same as for any renters). I balked and then they replied "the EARLIEST you may arrive is 1pm." I know I cannot enter the home when there is a tenant there, but I have a hard time with someone telling me when I "may" and may not enter my own home when there is no tenant staying there. Am I being unreasonable?
  • They initially refused, time and again, to set the rental rates at the rates I gave them -- rates that I've determined to be the market rate, as the place has been renting for successfully at those rates. They finally changed it after refusing to for two months. In the meantime, they were booking the place at rates that won't even cover my expenses, much less turn a profit. I do have the right to set my own rates, right?

I guess I'm just confused, and I feel completely powerless over what is the biggest investment I have. It is my property, and I was under the impression that the property manager is supposed to be working for me -- simply managing it, doing the same job that I had been doing but no longer have time to do -- but instead, they are operating as if they own the property -- like they fully control it and can do whatever they want with it, including managing the funds however they want, charging me to stay in it.

Any insight that anyone can provide is greatly appreciated.

Thanks! Erin

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Anthony GaydenPro Member
Rental Property Investor · Omaha, NE · Member since 2014 · 2k+ posts · 3k+ votes
11y

@Erin South

If my property manager told me I would have to pay him to stay in my own place, I would tell him to go "F" Himself. 

If my property manager told me that I couldn't get into my own place when I wanted to get in there, I would tell him "You are FIRED!!!!"

If my property manager told me that he wouldn't explain any and every single charge, I would tell him "Kiss my A!!!!!"

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  • Investor · Clarkston, MI · Member since 2009 · 72 posts · 48 votes
    11y

    All of this sounds very unreasonable to me. What are terms of your agreement? What's stopping your from managing it yourself? I'd be happy to give you advice as I manage three of my own from four hours away. 

  • Carlisle, PA · Member since 2015 · 60 posts · 31 votes
    11y

    @Erin South  I'd go shopping for a new property manager.  Vacation rentals are different and they like you to abide by the rules as everyone else, that is the only thing that seems reasonable to me.  I seems like they are robbing you and telling you not to worry about it.  

  • Seattle, WA · Member since 2015 · 500 posts · 243 votes
    11y

    Erin - I would definitely be concerned in your shoes. This doesn't sound like a situation that I would be in any way comfortable with. At minimum, they should be able to provide you with an itemized list of expenses, including applicable fees.

    If they are treating you as patronizingly as you have described, I would sit them down and inform them that their unprofessional behavior and communication with you, the owner, are unacceptable. I would bring a copy of the management agreement with you and use that as reference for the points you wrote about above.

  • JD MartinBusiness Member
    Moderator
    Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes
    11y

    If I hired a management company and they refused to collect the rates I set, I would terminate the agreement on the spot. I hope you don't have a contract that prevents you from terminating without paying damages. 

    Skyline Properties
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  • Anthony GaydenPro Member
    Rental Property Investor · Omaha, NE · Member since 2014 · 2k+ posts · 3k+ votes
    11y

    @Erin South

    If my property manager told me I would have to pay him to stay in my own place, I would tell him to go "F" Himself. 

    If my property manager told me that I couldn't get into my own place when I wanted to get in there, I would tell him "You are FIRED!!!!"

    If my property manager told me that he wouldn't explain any and every single charge, I would tell him "Kiss my A!!!!!"

  • Investor · Carolina Beach, NC · Member since 2015 · 2 posts · 0 votes
    11y

    Thanks for the replies! My management agreement is the standard one issued by the NC Association of Realtors. The term is one year, and I'm only two months into that. I can pay a fee to get out of it, however. 

    Steve - my reason for not managing it myself is that it's several hours away from where I live and I cannot go down there every week to check on the place, check for damages, make sure it's clean/in good order, handle maintenance issues, etc. I'm beginning to re-think this, though, as I am the one paying for the VRBO listing -- they are just managing queries -- I can do that on my own. In considering it, it seems that if I had a housekeeping service that I trusted to clean and monitor for damages and a solid handyman, then I could feasibly manage it on my own without having to go down there every week. There is a code on the door, so giving renters access would not be an issue. Am I thinking that through enough?

  • Anthony GaydenPro Member
    Rental Property Investor · Omaha, NE · Member since 2014 · 2k+ posts · 3k+ votes
    11y

    @Erin South

    You are the boss, not that idiot PM. I am one of those people who get a really bad attitude when people try to treat me like I am stupid, and from your post, that is what your PM is doing to you. 

    This is your money, your property, and your livelihood. You deserve better than that crap. 

    If you are posting this message looking for advice, that means that this is already a major issue and it needs to be resolved now. You already know what you have to do. Fire your PM. You will lose more money staying with this PM than by breaking any sort of contract. 

  • Investor / Landlord · Columbus, OH · Member since 2015 · 276 posts · 174 votes
    11y

    Erin, if the picture you paint is accurate, they're a terrible firm to do business with.  However, it appears that at least some of the onerous problems you've had to endure are because you signed a contract not good for your financial health (i.e., you likely didn't negotiate well-enough to protect your interest) and/or because of your acquiescence to their bullying.   I strongly urge you to deal with this company through an attorney so they know you are serious.  The correct attorney will know how to keep this company in check and accountable or be able to get you out of the contract.   The next time, negotiate better or have someone negotiate for you. 

  • Investor · Denver, CO · Member since 2014 · 71 posts · 44 votes
    11y
    If this is accurate, I agree with others. Show this PM the door. Some of these things should be in your contract. Are they? If not tell the PM to explain to you where you agreed to that? Get your accounting the way you want it. If they won't provided it, fire them. This is your house.
  • Investor · Clarkston, MI · Member since 2009 · 72 posts · 48 votes
    11y

    You can easily manage this property from a distance, yourself. My cleaners are my eyes and ears, and I pay them well. It takes time to develop relationships with people from a distance, but if you give them specific instructions on what to do, and what your expectations are, you should be fine. Chances are, that they know a maintenance guy if you need one. Otherwise, have them report damages to you and call the local plumber, electrician, etc. yourself. That's about the extent your PM firm is going to do for you. Most PM companies don't do much to earn the money they demand, in my opinion, and they'll never run it like you would. Don't let your fears prevent you from doing this yourself. It's not as hard as it sounds.

  • Real Estate Professional · Atlanta, GA · Member since 2015 · 18 posts · 11 votes
    11y

    @Erin South

    Agree with others and change the PM or do it yourself. There are many PMs out there who will provide a decent service and don't forget, it's your asset. 

  • Investor · Daphne, AL · Member since 2014 · 1k+ posts · 242 votes
    11y
    We have one like this. Read your contract and then move on as soon as you can. Good luck.
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