Plano, TX · Member since 2017 · 151 posts · 5 votes
I have a tenant contact me for a negligent property manager we hired. She showed the records of her contacting the PM for repairs with no or delayed responses. Some were pretty bad like AC/heating or major appliances broken for a prolonged time.
We knew this PM was not top notch (he is always behind in forwarding the rents, almost never provided statements so we have been kept in dark regarding repair works or eviction), but we had no idea he was also being negligent toward the tenant. Now we have hired another PM to replace him, and are arranging contractors for the repairs. But now the tenant asked for compensation from us.
How should we handle this? The tenant is good in paying their rents on time, but I don't think we should be the one to take the hit.
Real Estate Broker · Hyde Park Tampa, FL · Member since 2019 · 2k+ posts · 3k+ votes
7y
Zoe, this tenant did you a big favor. First, she could have withheld rent until the repairs were made. She didn't. And, she could have let this PM continue on being "not top notch" (why was that acceptable to you? Being late in forwarding rents is a serious issue!) but she reach out to let you know. You're the owner. You hired the PM to represent you and to abide by Landlord - Tenant Laws. My recommendation is to make amends, compensate the tenant, and get the repairs made now. It's simply one of those times when you have to cowboy up and make it right.
Rental Property Investor · Indiana...mostly · Member since 2019 · 468 posts · 245 votes
7y
Based on what you've noted, I would compensate the tenant by saying, "I'm incredibly sorry for the PM's poor performance. I wish you would have been able to reach me sooner. Here is my number in case this ever happens again. The good news is that I've replaced the PM. " That's all I would do.
If this was a 5 or 10 year perfect tenant, I might do something more though.
Real Estate Broker · Hyde Park Tampa, FL · Member since 2019 · 2k+ posts · 3k+ votes
7y
Zoe, this tenant did you a big favor. First, she could have withheld rent until the repairs were made. She didn't. And, she could have let this PM continue on being "not top notch" (why was that acceptable to you? Being late in forwarding rents is a serious issue!) but she reach out to let you know. You're the owner. You hired the PM to represent you and to abide by Landlord - Tenant Laws. My recommendation is to make amends, compensate the tenant, and get the repairs made now. It's simply one of those times when you have to cowboy up and make it right.
Zoe, this tenant did you a big favor. First, she could have withheld rent until the repairs were made. She didn't. And, she could have let this PM continue on being "not top notch" (why was that acceptable to you? Being late in forwarding rents is a serious issue!) but she reach out to let you know. You're the owner. You hired the PM to represent you and to abide by Landlord - Tenant Laws. My recommendation is to make amends, compensate the tenant, and get the repairs made now. It's simply one of those times when you have to cowboy up and make it right.
In the middle of fixing things, the tenant wasn't super responsive herself, but anyway. For compensation, the tenant didn't give a number, how should I calculate this? The tenant originally wrote us and wanted a month of rent back, but I think that's a bit too much - on top of fixing all the items. It was the PM who messed up. Not us. We were kept in dark the whole time.
As long as the issues are being addressed the I would sit back a moment and find out what is going on. Give your property manager time to sort this out. You are paying them to handle it. Let them do their job and at least listen to their solution. You are an owner and hire people to handle your issues. Go sit on a beach and drink rum :)
As long as the issues are being addressed the I would sit back a moment and find out what is going on. Give your property manager time to sort this out. You are paying them to handle it. Let them do their job and at least listen to their solution. You are an owner and hire people to handle your issues. Go sit on a beach and drink rum :)
We've been having issues with the PM anyway, like he's months behind in sending rents over, and even though the contract requires our approval for repairs more than $300, he never ever does that. We've given him notice already. I'm sure he'll have his side of story if I asked, but based on how he deals with us, that's enough.
Plano, TX · Member since 2017 · 151 posts · 5 votes
7y
The tenant originally said they were prepared to take the PM to court. Now the PM is let go, will they have a case against us? They never dealt with us directly. When they wrote us they said they didn't want to deal with the PM anymore and wanted to break out the lease without penalty. And wanted a month's rent back for their loss.
Real Estate Broker · Coppell, TX · Member since 2011 · 5k+ posts · 4k+ votes
7y
Tough situation, especially now that you've terminated the property management agreement. That was probably the time to get it from them. Now they'll have no incentive. You may have more than one battle going on. Lots of factors to consider. My first thought is you will not get anything from the property manager to compensate the tenant. You may be lucky to get your back rent and deposit from them.
The other thing I would consider is when the lease ends, how long the tenant has been there, how well they have paid and requested repairs, etc, and if you want to keep them.
Sounds like they have been fairly good. Remember vacancy costs you money. You might have down time with no rent, and might have to spend more on repairs/updates to get it rented again and also pay a releasing fee. So small compensation to the tenant might cost you less if you want to keep them.
I do like the wording above on one response to them....sorry, thanks for letting us know...in the future, etc.
Property management and good/great property management is a tough part of the system. No one likes their property manager.
Tough situation, especially now that you've terminated the property management agreement. That was probably the time to get it from them. Now they'll have no incentive. You may have more than one battle going on. Lots of factors to consider. My first thought is you will not get anything from the property manager to compensate the tenant. You may be lucky to get your back rent and deposit from them.
The other thing I would consider is when the lease ends, how long the tenant has been there, how well they have paid and requested repairs, etc, and if you want to keep them.
Sounds like they have been fairly good. Remember vacancy costs you money. You might have down time with no rent, and might have to spend more on repairs/updates to get it rented again and also pay a releasing fee. So small compensation to the tenant might cost you less if you want to keep them.
I do like the wording above on one response to them....sorry, thanks for letting us know...in the future, etc.
Property management and good/great property management is a tough part of the system. No one likes their property manager.
Bruce, thanks for you reply.
I'm not expecting the PM to compensate. I just offered to reimburse the tenants for a couple of small things they paid for, and half month's rent off.
About the PM, he's actually months behind in paying us. But I suppose by the legal agreement he has to pay us, or we have a strong case to take him to court, right?
Real Estate Broker · Coppell, TX · Member since 2011 · 5k+ posts · 4k+ votes
7y
@Zoe Lee I'd say that compensation sounds good to the tenant. Yes you have strong case in court and with TREC. It is worrisome to me that they are months behind in paying you and also not keeping up with tenant complaints/repairs. I'd start getting all your documentation in order, so you can act quickly. It gets more risky as time drags on. You'll want your property management agreement. The documentation you have from the tenant. Your correspondence with PM. You financial records from PM.
Best wishes and good luck. Based on all this you might consider doing the management yourself. Even if you are long distance.