Property management issue in Jamestown, NY area

5 Replies

Bought a property and recruited a manager in jamestown, NY area.

Not receiving any rental checks for last two months, and the guy ignoring my calls and mails.

I live in phoenix. I Need advice from expert folks, what do i need to do to get this situation fixed? there may be some tenant issue on the property also..

thx

1. Write them a letter stating they are fired and demanding a turnover of all funds, keys, and records within 14 days (or whatever time period you define).

2. Contact the New York real estate commission and file a complaint. They will typically reach out to the property manager (or broker, if different) and let them know a complaint has been filed. That may be enough to spur your manager to turn everything over to you and get rid of you. The last thing anyone wants is the state commission snooping around so this is a heavy motivator.

3. Start looking for a new manager immediately.

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!

@Nathan G 

Really appreciate your advice.. now i have some course of action.. will post later once i go through it..

thx


Originally posted by @Nathan G. :

1. Write them a letter stating they are fired and demanding a turnover of all funds, keys, and records within 14 days (or whatever time period you define).

2. Contact the New York real estate commission and file a complaint. They will typically reach out to the property manager (or broker, if different) and let them know a complaint has been filed. That may be enough to spur your manager to turn everything over to you and get rid of you. The last thing anyone wants is the state commission snooping around so this is a heavy motivator.

3. Start looking for a new manager immediately.

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!

 

I live 16 miles from Jamestown, what made you decide to invest here all the way from Phoenix? I am a local investor and manage  all my own property here. If you would like to connect privately, i could maybe help you out with your property, or at least help point you in the right direction. 

I know the city of Jamestown intimately, and can give you a broad outlook of the neighborhood that your propery is in, it is a small city, with low income, and many undesirable people, there are drug problems, and lack of good paying jobs. There are good areas, and bad, and they go by a street to street basis.

I currently own 2 duplexes near the hospital, and am currently looking for more, for either long term buy and hold, or potental flip opportunities.

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