Georgia property management issues

[Dan Veld]

Hi looking for any advice, my property manager in the Atlanta area hasnt paid my owner draw in 5 months.  They keep answering questions but always excuses when it comes to getting the money owed.  Any thoughts?  Should I report them to the real estate commission?  

[Nathan Gesner]

What excuses are they giving? Have they provided evidence? Is the home rented or vacant?

There are a lot of unanswered questions so I can't possibly determine what is right/wrong here. However, here are some recommended steps:

1. Write a letter demanding payment and/or a justification of why you have not been paid. Give them no more than a couple weeks to respond and demand their response be in writing. Let them know you will report them if they fail to comply.

2. If they don't answer, or fail to answer to your satisfaction, contact the commission and tell them you would like to file a complaint. I don't know about every state but in my state the commission will contact the agent first and try to motivate them to resolve the issue before a formal complaint is filed. This is usually enough to resolve the issue. If it does not, file the complaint and see what happens.

3. Start actively looking for a new manager. You don't have to wait until this issue is resolved before switching. As soon as  a new property manager is found, send written notice of termination to your current manager. Let them know you where to send security deposits, tenant files, keys, etc. Be very clear about the termination date and that you will not pay any penalties or fees because they have breached the contract (I'm assuming they've breached the contract but you will have to decide this).

How to find a new manager:

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!