Should I fire my property manager?

Question

I am an out of state military landlord with one rental. I have rented my property for the past five years with the same large multi-state brokerage with only one month of vacancy for repairs/clean up. During this time the Property Manager has left for greener pastures twice - I'm currently on my third manager who has been in charge for less than a year.

Problem is the new manager charged a renewal fee four months ago - something the other two managers never did over three renewals on a year long lease. Moreover, the manager did it without telling me first and took the 25% fee directly from my owner proceeds check. I was left asking for an invoice on work to my rental only to find out about a renewal clause I was previously unaware of.

Second, the manager recently hired a family member to perform plumbing work on my rental after a call from the tenant - it wasn't an emergency since our usual handyman the brokerage uses cleared the backup. The pipes needed according to the handyman - a clean out or roto-rooter service. So the manager calls the brother to do the work. Then asks me to pay the brother directly since my maintenance reserve went to the handy man.

Should I fire this person?  How do I go about it if I should? Or do I chalk it up to inexperience and live and let live?

Thanks

William Hochstedler · Answer

Maybe, maybe not.  There are a lot of PM companies that have long standing relationships with their vendors who, because of this relationship, get things done efficiently and competitively.  The question is: was this passed on to the client?

I would be more focused on the change in fee schedules and potentially unnecessary work.  Your contract should state a dollar amount over which you need to be notified.  Did this work violate that?  Is this renewal fee a new thing?  Is it in your contract?

Clearly if they are billing you for items that conflict with the management contract, you have a problem.

You may also want to go to corporate if you feel that you are experiencing high turnover in the property managers that you are working with, particularly if the product is inconsistent.

Chris S. · Answer

Does anyone think it's a conflict of interest to hire the brother to work on my rental?  I pay the manager to act in my best interests.  If the manager hires the brother I'm left guessing - who's best interests am I paying for??

Carlos Enriquez · Answer

My PM will charge a renewal fee whenever the lease is up.  He also charged for inheriting two current leases from the previous owner, but at a lower fee.

From what I understand, this is normal.  But they won't tell you that.  You'll have to review your contract with them word by word.  If it's not in there, then you gave a legit grievance.

David Stefanovic · Answer

It's important, especially with a property manager, to go over all the details (big and small) and type of service and fees you will be receiving prior to signing any agreement with them.  It's important to have total transparency and mutual understanding, otherwise, you will find yourself with the same problem with future property managers. As Ashley stated, try to sit down and have a conversation with your property manager and revisit the agreement, etc. If he or she is not cooperative, look for another one!

Ashley St. Gelais · Answer

Hey @Chris Statler,

This is a great opportunity to clarify the relationship and expectations.  We own and operate a small property management firm in Vermont and highly value transparency and trust with our clients.  In the beginning we get really clear on procedures for repairs and which contractors to use based on the owners preference.

I'd ask the manager how they new renewal fee was disclosed to you and if they can wave it this one time because you were not aware of it?  Perhaps start the search for a new manager. I do believe in giving people a chance to make something right before firing them right off.

But if the constant turn over of staffing and inconsistent practices are hindering your business, it may be time to make a change.

Hope this helps!

Ashley