Investor · Shawnee Mission, KS · Member since 2016 · 24 posts · 2 votes
I closed on a duplex at the end of November. I kept the management company the previous owner used. One of the tenants only paid half of a month's rent for December. I brought this to the property management company's attention last week and they said they would follow up with the tenant. I haven't heard anything since then and I've been trying to get a hold of the management company by phone and email since Wednesday of last week and haven't heard anything.
How should I handle this situation? The tenant has clearly broken their contractual obligation by only paying half of the rent. The due date is the first of the month and it's the twelfth of the month as I write this. I want to serve notice that the tenant has three days to make their payment before the eviction process is started, but can I do this without the management company knowing? What if the management company hasn't entered the check into my online account, but the tenant has paid since last week? I am assuming the tenant is testing the waters now that the duplex is under new ownership though...
Read your management agreement with the company. If they are not following it, send them a letter asking them to comply and what terms you feel they are not fulfilling, or make an appointment to speak directly about tweaking the management contract as it's not working out for you as it is. Or start searching for better management and ask if they will help you get any funds, deposits, etc., from the other manager. Make sure you properly cancel the other contract, though, or you could be owing management fees to both.
For my out-of-state property, my manager will send me an e-mail after the 5th stating that they have not received rent from x unit, notice was given to tenant, and if they do not receive payment by the 10th, those rents will not make this deposit. So maybe ask your manager if they have a notification process so you are more informed when tenants don't pay in full so you can prepare for a vacancy if necessary.
@Lauren M. when you said they accepted half a months rent that is your sign that the mgmt. company doesn't know what they are doing. Check your local state laws because an affirmative defense to eviction in many states is acceptance of partial payment in any month bars eviction in that month (meaning if you accept anything other than the full amount you must be OK with that partial amount being rent for that month).
Can you get in your car and drive to their office? If so do it. If not check the agreement closely about termination issues and get the full story (assuming they will ever answer the phone). Then move quickly to fire them if necessary.