Carrboro, NC · Member since 2015 · 29 posts · 4 votes
I have 13 supposed to be turn-key doors out of state and the property manager is doing a very poor job. they owe me maintenance warranty and move in warranty. the move in warranty is not in our agreement but I have multiple emails detailing the agreement and how it is paid out.
there is also clearly maintenance problems that are recurring. what can i do to recover my money? the amount is too large to walk away from. i am prepared to change PM and have done due diligence to find a new one but i don't want to forfeit money owed by leaving my PM.
Should I consult with a local attorney? fly there and use my own maintenance people to fix things and look at issues? I want to get this turned around and i am trying to work with PM as I feel like that will be the least painful way forward.
Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
8y
1. Contact them in writing with a demand for compensation. Be specific and include supporting evidence. Give them a deadline and let them know the next step will be your attorney.
2. You can add pressure by contacting the real estate commission or whatever the governing body is. Don't file a complaint but talk to their investigator and let them know what's happening. They will typically contact the Broker and let them know that a complaint could be forthcoming and that might be enough to motivate the Broker to resolve this quietly.
3. If that doesn't work, hire an attorney. If the amount owed is small enough, file in Small Claims court and save yourself the attorney fees. If you have documentation proving they owe you the money, you can probably win your case without the assistance of an attorney.
Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
8y
By the way, I wouldn't wait for resolution before looking for a new manager.
You can start by going to www.narpm.org and search their directory of managers. These are professionals with additional training and a stricter code of ethics. It's no guarantee but it's a good place to start.
1. Ask how many units they manage and how much experience they have. If it's a larger organization, feel free to inquire about their different staff qualifications.
2. Review their management agreement. Make sure it explicitly explains the process for termination if you are unhappy with their services, but especially if they violate the terms of your agreement.
3. Understand the fees involved and calculate the total cost for an entire year of management so you can compare the different managers. It may sound nice to pay a 5% management fee but the extra fees can add up to be more than the other company that charges 10% with no add-on fees. Fees should be clearly stated, easy to understand, and justifiable. If you ask the manager to justify a fee and he starts hemming and hawing, move on or require them to remove the fee. Don't be afraid to negotiate!
4. Review their lease agreement and addendums. Think of all the things that could go wrong and see if the lease addresses them: unauthorized pets or tenants, early termination, security deposit, lease violations, late rent, eviction, lawn maintenance, parking, etc.
5. Don't just read the lease! Ask the manager to explain their process for dealing with maintenance or problem tenants. If they are professional, they can explain this quickly and easily. If they are VERY professional, they will have their processes in writing as verification that it is enforced equally and fairly by their entire staff.
6. Ask to speak with some of their current owners and current/former tenants. You can also check their reviews online at Google, Facebook, or Yelp. Just remember: most negative reviews are written by problematic tenants. The fact they are complaining online might be an indication the property manager dealt with them properly so be sure to ask the manager for their side of the story.
I hope this basic guide helps. If you have specific questions about property management, I'll be happy to help!
Carrboro, NC · Member since 2015 · 29 posts · 4 votes
8y
thank you @Nathan Gesner for the detailed response. Everything is in process and I am getting some movement on their end but no commitment on when warranties will be paid. I thought it would be better to tryto work with them and avoid legal action for the cost and time factor. and i believe the PM is not being malicious but is over his head right now. @Caleb Heimsoth yes the warranties are to cover rent if there are no leases within 60 days of ownership and repair costs.
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