PM charges monthly fees even after property is sold!!!

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PM charges monthly fees even after property is sold!!!

Don Thornton
Member since 2019 · 9 posts · 1 vote

Hi,

I hired a PM company here in Las Vegas and I decided to sell my property because the tenants left it in a mess. The PM continued to charge me monthly fees while I fixed up the property. He told me I signed up for 1-year term and I have to pay. The tenants left the place with pee smell and broken window and we spent over $15000 fixing the place up removing floors and repainting the whole place, a brand new dishwasher used 5 months was thrown away. PM took the safety deposit which I never got to see and he changed me monthly PM fees. He also hired a landscape guy who charged me $180 which he didn't tell me about. He said it's because any sum under $250 I don't need to know about. Now after 3 months the valve leaked again. The person who fixed the landscape doesn't have a company name. It's just some guy and the invoice is his name and a phone number. Another property the tenant destroyed the garage door by putting epoxy on it. When they left he told me I didn't pay $700 for new panels. I got another company to fix for $200. He told me to refund ALL the rental's deposit to them. Anyone of you has had these problems? How do I get out of paying this PM monthly fee if I haven't been happy with them and now I don't have any tenants? 

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Guifre Mora
Lender · San Diego, CA · Member since 2019 · 874 posts · 355 votes
6y
Originally posted by @Don Thornton:

Hi,

I hired a PM company here in Las Vegas and I decided to sell my property because the tenants left it in a mess. The PM continued to charge me monthly fees while I fixed up the property. He told me I signed up for 1-year term and I have to pay. The tenants left the place with pee smell and broken window and we spent over $15000 fixing the place up removing floors and repainting the whole place, a brand new dishwasher used 5 months was thrown away. PM took the safety deposit which I never got to see and he changed me monthly PM fees. He also hired a landscape guy who charged me $180 which he didn't tell me about. He said it's because any sum under $250 I don't need to know about. Now after 3 months the valve leaked again. The person who fixed the landscape doesn't have a company name. It's just some guy and the invoice is his name and a phone number. Another property the tenant destroyed the garage door by putting epoxy on it. When they left he told me I didn't pay $700 for new panels. I got another company to fix for $200. He told me to refund ALL the rental's deposit to them. Anyone of you has had these problems? How do I get out of paying this PM monthly fee if I haven't been happy with them and now I don't have any tenants? 

I'm sorry this happened to you it sucks but your post is bit too much venting really doesn't help much. Are you talking about 2 properties under the same PM? both vacant?

  • You may have a contractual issue first and a sketchy PM.  
  • Review your contract. Have they been negligent? Have they breached the contract?
  • Consult a RE lawyer. 

  • Good luck
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  • Guifre Mora
    Lender · San Diego, CA · Member since 2019 · 874 posts · 355 votes
    6y
    Originally posted by @Don Thornton:

    Hi,

    I hired a PM company here in Las Vegas and I decided to sell my property because the tenants left it in a mess. The PM continued to charge me monthly fees while I fixed up the property. He told me I signed up for 1-year term and I have to pay. The tenants left the place with pee smell and broken window and we spent over $15000 fixing the place up removing floors and repainting the whole place, a brand new dishwasher used 5 months was thrown away. PM took the safety deposit which I never got to see and he changed me monthly PM fees. He also hired a landscape guy who charged me $180 which he didn't tell me about. He said it's because any sum under $250 I don't need to know about. Now after 3 months the valve leaked again. The person who fixed the landscape doesn't have a company name. It's just some guy and the invoice is his name and a phone number. Another property the tenant destroyed the garage door by putting epoxy on it. When they left he told me I didn't pay $700 for new panels. I got another company to fix for $200. He told me to refund ALL the rental's deposit to them. Anyone of you has had these problems? How do I get out of paying this PM monthly fee if I haven't been happy with them and now I don't have any tenants? 

    I'm sorry this happened to you it sucks but your post is bit too much venting really doesn't help much. Are you talking about 2 properties under the same PM? both vacant?

    • You may have a contractual issue first and a sketchy PM.  
    • Review your contract. Have they been negligent? Have they breached the contract?
    • Consult a RE lawyer. 

    • Good luck
    2Reply
  • Karl B.
    Rental Property Investor · Erie, PA · Member since 2015 · 1k+ posts · 2k+ votes
    6y

    If all else fails you can always write appropriate reviews online about the company (Yelp, Google, BBB, Yellowpages, etc.). 

    2Reply
  • Michael King
    Rental Property Investor · Navarre, FL · Member since 2019 · 913 posts · 640 votes
    6y

    Don although I like to go for the google jugular (bad review), as does @Karl B., you have to be very careful, as anything that is not factual will probably be called libel and that can get you sued. 

    You for sure have a dodgy PM. I've had 3 PM companies manage my properties, and none of them would dare hire anyone to fix anything without asking me first. 

    As @Guifre Mora said, review your contract and that will tell you what you're on the hook for. Some of these PM companies write contracts that state the term you have to pay them for, and in my mind, that's appalling. And to terminate you may need to give them 3 months' notice. Does the PM have a manager you can talk to?

    It is very stressful when you have a PM you have to worry about, and even worse when you have crappy tenants that the PM placed for you (assuming they did). 

    Best of luck to you.

    1Reply
  • Don Thornton
    OP
    Member since 2019 · 9 posts · 1 vote
    6y

    Yes both properties are vacant. I am trying to sell them now. I don't understand if I signed a contract and I am not happy with the PM's work, do I still pay even when the property is vacant? I guess I am trying to get help here to see if anyone signed a contract for 1 year term and even if they sell the property they still have to pay? If the PM did the walk-thru and found out my last tenant left the place in a mess with dog pee smell why didn't they report to me so I can kick them out earlier? They were on a month to month lease. 

    0Reply
  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    6y
    Originally posted by @Don Thornton:

    Yes both properties are vacant. I am trying to sell them now. I don't understand if I signed a contract and I am not happy with the PM's work, do I still pay even when the property is vacant? I guess I am trying to get help here to see if anyone signed a contract for 1 year term and even if they sell the property they still have to pay? If the PM did the walk-thru and found out my last tenant left the place in a mess with dog pee smell why didn't they report to me so I can kick them out earlier? They were on a month to month lease. 

    Nobody can really answer your question without seeing all the facts. What does your PM Agreement say about termination?  You should review the agreement to see what it says about the termination process and then follow it. If you signed up to pay fees even though the property is listed for sale, then that's a hard lesson learned.

    I recommend you contact the PM, tell them you want to terminate their service immediately, and negotiate a termination fee. IF you have six months left of management, offer to pay them three months and cut them loose. Something is better than nothing.

    Warning to others: read and understand your contract! There are a lot of bad property managers out there but you have to take responsibility for failing to investigate them or understand your contract.

    The DIY Landlord Book4.7248 Reviews
    WebsiteView Page
    0Reply
  • James Wise
    Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
    6y
    Originally posted by @Don Thornton:

    Hi,

    I hired a PM company here in Las Vegas and I decided to sell my property because the tenants left it in a mess. The PM continued to charge me monthly fees while I fixed up the property. He told me I signed up for 1-year term and I have to pay. The tenants left the place with pee smell and broken window and we spent over $15000 fixing the place up removing floors and repainting the whole place, a brand new dishwasher used 5 months was thrown away. PM took the safety deposit which I never got to see and he changed me monthly PM fees. He also hired a landscape guy who charged me $180 which he didn't tell me about. He said it's because any sum under $250 I don't need to know about. Now after 3 months the valve leaked again. The person who fixed the landscape doesn't have a company name. It's just some guy and the invoice is his name and a phone number. Another property the tenant destroyed the garage door by putting epoxy on it. When they left he told me I didn't pay $700 for new panels. I got another company to fix for $200. He told me to refund ALL the rental's deposit to them. Anyone of you has had these problems? How do I get out of paying this PM monthly fee if I haven't been happy with them and now I don't have any tenants? 

     When you sign a property management contract, it's just that, a contract. In that contract what you are required to do is (or should be) laid out. This includes early termination fees. This is much like a cell phone or cable contract in that regard. I've got a sneaky suspicion that you have not actually read your contract with this company. Am I off base on that?

     Now that point aside it's difficult to tell from your post what exactly happened here in your situation. What you've wrote appears to be a very emotional and one sided vent. So without hearing both sides of the story and seeing facts such as contracts, invoices etc....It's going to be nearly impossible for anyone to provide you with valuable feedback.

    0Reply
  • Theresa HarrisPro Member
    Member since 2019 · 15k+ posts · 11k+ votes
    6y

    There should a clause allowing you to get out of your contract.  At the least a cease and desist for them to stop sending people to your place to 'fix' things.  As for the deposit, since you did the work, he should give that to you.  He is NOT entitled to keep it himself unless he's done the work. I would file a complaint with the regulatory board and give him a crappy review on any online rating to warn others.

    0Reply
  • Theresa HarrisPro Member
    Member since 2019 · 15k+ posts · 11k+ votes
    6y
    Originally posted by @Michael King:

    Don although I like to go for the google jugular (bad review), as does @Karl B., you have to be very careful, as anything that is not factual will probably be called libel and that can get you sued. 

    You for sure have a dodgy PM. I've had 3 PM companies manage my properties, and none of them would dare hire anyone to fix anything without asking me first. 

    As @Guifre Mora said, review your contract and that will tell you what you're on the hook for. Some of these PM companies write contracts that state the term you have to pay them for, and in my mind, that's appalling. And to terminate you may need to give them 3 months' notice. Does the PM have a manager you can talk to?

    It is very stressful when you have a PM you have to worry about, and even worse when you have crappy tenants that the PM placed for you (assuming they did). 

    Best of luck to you.

     It is easy enough to stick to the facts about the deposit and damage, plus sending people over to do work after they've been 'fired'.

    1Reply
  • Michael King
    Rental Property Investor · Navarre, FL · Member since 2019 · 913 posts · 640 votes
    6y

    @Theresa Harris Agreed. It should be that way, but some may get angry while venting and get cloudy on the facts. Whenever I do online reviews I have to check and recheck to make sure I stick to the relevant events. As opposed to submitting comments on forums however, where I just blurt it out and hit 'post' haha.

    0Reply
  • Theresa HarrisPro Member
    Member since 2019 · 15k+ posts · 11k+ votes
    6y
    Originally posted by @Michael King:

    @Theresa Harris Agreed. It should be that way, but some may get angry while venting and get cloudy on the facts. Whenever I do online reviews I have to check and recheck to make sure I stick to the relevant events. As opposed to submitting comments on forums however, where I just blurt it out and hit 'post' haha.

     No one here would ever do that ;)

    1Reply
  • Matthew Irish-JonesBusiness Member
    Real Estate Agent · Buffalo, NY · Member since 2017 · 2k+ posts · 2k+ votes
    6y

    @Don Thornton does your contract state you pay monthly flat fees, fees based on rent collection or whichever is higher?

    That is the first place to check. Also, if he is a professional PM company he should only use licensed and insured vendors to service your property (check your specific state laws).

    If he used a landscaper that is not insured that could be a breach of contract.

    You should review your contract carefully.

    Irish Jones Realty4.947 Reviews
    View Page
    0Reply
  • Don Thornton
    OP
    Member since 2019 · 9 posts · 1 vote
    6y

    I checked my Property Management Agreements. They state:

    1) Either party can terminate at any time with written notice of 30 days. 
    2) That if I cancel they can charge me up until the end of the lease. In the case of month-to-month tenancy they get 30 days payment beyond the end of any agreement ($75 or 7%, whichever is greater).
     
    Two properties were month-to-month and the third property was at the end of it's lease.  They charged me $1878.50 but were only due $267.50. They definitely overcharged me. I just wrote them a termination letter for the 3 properties and requested my money back. There is a fourth property whose lease ends in June. I'm sure they will quit me and I won't have to pay to the end of the lease on the 4th property. 

    That's where things stand as of now. 

    If you are using any other HONEST PMs in the Las Vegas area please contact me. I am interested in knowing the best PMs.
     

    1Reply
  • Phillip Dwyer
    Real Estate Agent · Henderson, NV · Member since 2011 · 1k+ posts · 550 votes
    6y

    @Don Thornton Feel free to contact me.  If I can't help, I know a few other companies that likely can.  

    1Reply
  • Jane S.
    Flipper/Rehabber · Colorado Springs, CO · Member since 2016 · 499 posts · 167 votes
    6y

    Don, why in he** would you be looking for yet another dodgy PM?

    Do you live in LV? Why not manage the rentals yourself? It sounds like you don't have many.

    I would NEVER turn over tenant selection to anyone much less a PM who only wants the fee in his pocket. I just got off the phone with a guy who says he "meets all the requirements in my rental ad" but when I said our policy is prequal before showing, he yelled "F**K you" & hung up. Good riddance. A PM would have been Jonny on the spot with this moron, forget due diligence, and you'd be stuck with him.

    0Reply
  • Jane S.
    Flipper/Rehabber · Colorado Springs, CO · Member since 2016 · 499 posts · 167 votes
    6y

    Don,

    Who wrote the lease for your rentals? Not the PM company I HOPE! Worth it to have an attorney make sure you have a good one. I have seen leases printed so tiny no one can even read them.

    0Reply
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