Property management help needed!

10 Replies

Hello BP!

I'm a new investor and I just got my first turnkey rental property! This is obviously a very big deal to me and I'd love to make it work!

However, my current property management company is horrible! They were the ones who sold me the property so I figured they'd know what they're doing. Big mistake!

They have not paid me in over 7 months!! They do not communicate anything with me! When I contact them to ask about what's going on with the property, I always get some nonsensical response. 

My questions are:

1) what options do I have? And 

2) what is a good property management company that someone could recommend to me. My property is in Hagerstown, md.

Thanks all for your time!

JQ 

What are the nonsensical responses they give? Are they saying the tenant isn't paying?

Have you been to the property in the past 7 months or to the PM's office?

I think you need to get to both locations in person and demand some answers. Otherwise, that in-person meeting needs to be you ending your relationship with the PM, getting your keys and anything else back from the PM, and fix this issue of not getting income for 7 months. 

There must be more details to the story.

305-537-6252

A few questions that need answers from you:  Is the property management company a licensed real estate broker?  Do you have a written, signed management agreement with them? 

Sorry to hear about this problem, but question for you--why did it take seven months for you to take action?  Seems to be more to this story that is being written so far.

Best,

Marc

Marc Winter, Real Estate Agent

@Jing Qian Is this by any chance the famous Ocean Pointe/Morris Invest group of people? If so, the forums are filled with horror stories about them. 

Even if they're not, I would suggest searching through the BP forums/Google to find out the past history of your PM.

Let me guess... Billwood Properties?

If your property manager has failed to remit funds they collected that is a crime and you should file criminal charges against their principals with the court commissioner. 

Post the name of the manager and details about what is going on so others don't fall victim.a

We manage our own stuff in Hagerstown but I've heard good things about Synergy. Good luck!

When we owned property in MD, we were surprised to learn that there was no license requirement for property management in MD, so pretty much owner-beware.  We self-managed long-distance for a short time and ultimately decided to just sell there rather than continue to rent it out as we found MD too tenant-friendly.  I did once have trouble collecting rents from a manager in NC.  After a few months of receiving no money, the new management I researched and hired actually dealt with it for me, getting all my rents and my security deposits transferred over to them, and I've been with them for years now.  It turned out the old PM had some family issues and her assistants were not able to handle the money so couldn't pay the owners.  It taught me to make sure the management company has several licensed managers who support each other, not just one manager with a few assistants.      

I've heard this to many times... and it really comes down to what you will allow to happen in YOUR BUSINESS (your minimum standards) is about what you can expect to receive. If you don't treat this as a business every Tom, Dick and Harry will keep taking and taking and taking. I would hope that your contract with the PM has been broken by their horrible performance and at the very least you have broken contract. I mange all my own properties but I don't allow any tenant to go 2 months in the hole without filing eviction paperwork. I knew a out of town investor in a different area that the PM was saying the building was vacant and all the while collecting and pocketing the rents. If I were you, I would get personally involved asap. In Hagerstown I recommend Ridgecrest and Synergy. Only because I have clients and friends who used them. Ridgecrest will not mange in some areas. Take back your business!

Originally posted by @Bill Kenny :

I've heard this to many times... and it really comes down to what you will allow to happen in YOUR BUSINESS (your minimum standards) is about what you can expect to receive. If you don't treat this as a business every Tom, Dick and Harry will keep taking and taking and taking. I would hope that your contract with the PM has been broken by their horrible performance and at the very least you have broken contract. I mange all my own properties but I don't allow any tenant to go 2 months in the hole without filing eviction paperwork. I knew a out of town investor in a different area that the PM was saying the building was vacant and all the while collecting and pocketing the rents. If I were you, I would get personally involved asap. In Hagerstown I recommend Ridgecrest and Synergy. Only because I have clients and friends who used them. Ridgecrest will not mange in some areas. Take back your business!

 A friend of mine works with companies affiliated with Ridgecrest. Not sure about their PM business, but I know he takes his businesses seriously.

That said, you have to take a look at your contracts. They should have provisions for terminating the agreement, transitioning, etc.

Hi All,

Thank you all for the replies!

As far as why did it take so long for me to take action, let's just say it was mostly my own naivete and trust in the PM company that allowed things to go as far as it did.  They kept feeding me story after story of things like, "We need to get our accounts in order." or "We are updating our systems and we'll have everything finalized for you." etc.  Plus, I guess I'm not a really in your face type of person and am generally pretty mild-mannered and easygoing - perfect recipe to be conned!

Well anyway, long story short, I filed a complaint with the BBB and they've sent out a letter to the PM company.  I did find 4 clauses in the contract that the PM company seemed to be breaking:

1) not paying me in time

2) not notifying me of repairs that cost over $500

3) not collecting all rents properly (making me pay for utilities)

4) not using due diligence in managing my property

I'm hoping that I can get my rent money, the utility fees, and all the property management fees returned to me.  I'm also looking to terminate the contract without paying a termination fee.  Not sure if this is the best way to handle this, but I don't know any good lawyers to contact.

Thank you all for the referral for Synergy and Ridgecrest.  I will certainly check them out and see how they are.

And to Robert Fountain above, yes, the management company is Billwood Properties.  I will never do business with them again, and I have learned my lesson to do a THOROUGH investigation on anyone that I deal with in the future.

Thanks all again for your answers!  It's great to have this community of investors who got my back! :)

Jing Qian

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