get rid of them or not? PM company

[Account Closed]

I am new to this forum. I have been using a property management company for almost 1 year. I have found it to be stressful and feel like I need to micromanage them.

I came into this situation after my husband died and I needed to deal with his rentals. One tenant needed to be evicted soon after my husband died and the company charged me 3x on their invoice for the eviction. I  had to confront them about it, and I find their monthly statement so hard to follow (they put multiple months charges on one month statement) that I wasn't sure if they actually refunded me.

The evicted home needed to have repairs. They gave me an estimate from their vendor- which I knew was overpriced so I asked for a second quote and she said no- it was the best price. So I found my own much more reasonable quote and had the job done.

The home that we moved from after the death of my husband was just emptied out by me and I asked them to help me manage it because I didn't want to be dealing with it. They have a new associate. I told her via email on multiple occasions what I wanted rent plus the price for pool and lawn care. I told her explicitly that I didn't want it to be the responsibility of the tenant. WIth the first prospective tenant, the PM, only charged the rent I had asked but then included the pool and lawn service without adding that fee into the rent. I told her again what I wanted and she said she would renegotiate it with the tenant. The tenant pulled out and then she found another tenant. This time the PM put the rent at same amount and made lawn and pool a tenant responsibility- after we already had the discussion about what I wanted several times via email. SO told she says she will talk to the prospective tenant and renegotiate. 

Every single time I have to ask her for an update- so that If I hadn't asked all these questions she would not have done anything and my wants would have been completely ignored.

WIth the first prospective tenant, she even told them they could have the home- without consulting me about it. 

I am trying to decide if I should get rid of this company. they charge 8% of 1 months rent. I haven't used anyone else so I don't know if they would even be better. but I am finding this really stressful.

[Nathan Gesner]

@Account Closed you are experiencing what so many do. There are far too many property managers that just don't care. However, there is hope! Just like screening tenants, you have to screen your property management company. Compare their costs, verify their experience, ask questions about their policies. If they are good, they will take the time to explain everything to you and win your business with evidence, not a sales pitch.

Remember: cheaper doesn't mean you'll make more money.

You can start by going to www.narpm.org to 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. Regardless of how you find them, try to interview at least three managers

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 addenda. 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, late rent, evictions, turnover, etc. 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.

7. Look at their marketing strategy. Are they doing everything they can to expose properties to the widest possible market? Are their listings detailed with good quality photos? Can they prove how long it takes to rent a vacant property?

This isn't inclusive but should give you a good start. If you have specific questions about property management, I'll be happy to help!