Pascagoula, MS - 1st time investor - property manag. unethical

2 Replies

I bought a property last Dec. out in Pascagoula, MS and used the property management associated with the real-estate company, I flew out there, saw the property and like the forward to when I was back out of state, I emailed over a few questions about some fees that had been deposited back into my account after months of having a renter (which btw - I had to ask them to list the property for rent after 1 month of not seeing it listed anywhere), the owner said if I was going to ask questions I should find someone else...

this is my first go at real estate investing, although I had read a lot and listed to a lot of podcast for a year or so before, I felt like he was attaching me when I called. Fast forward to having only emailed a few times in the last 2 months, both went unanswered, had a warning from my mortgage company that the hurricane may have damage it so I asked for  a virtual walk through....silence... (also import to note is part of their sale is every 60 day property visit and photos updated on Buildum site...they have never posted one picture in 11 months). 

Today I sent a very professional email, as my renter is late over 15 days and according to my management contract they will contact me by the 10th is issues for rent/monies, and I had heard nothing, they also never respond to a visit or pictures of my property...and then he responded to my email with 30 days notice to cancel on agreement, I need to find new management...

I was already looking but thought I had to go through March as a renter that they provided is through March, I am needing a bit of mentor support on what then happens to the tenants monies that are in escrow from move in, do they need to transfer that to me, or to a new property management company? Are they liable for the services for the next 30 days, meaning are they just not even going to contact the tenant for the late rent /fees? 

I have never posted here - but research often to help support my learning but really wishing I had a mentor right now to help me navigate this nightmare that I thought I worked so hard to not have happen...I am nervous as an out of state investor and knowing no one with integrity in the area to check on my property....

I have already emailed another management company that I found through Bigger Pockets threads, I hope to hear from them tomorrow...but thought I would post to the brilliant mind of BP and see what might come of it. Thank you for helping to support a new to realestate and overwhelmed educator. -Cheers. 

That's unfortunate that you experienced that type of management. It sounds like they should not be in the business if they can't provide better service and transparency. We recently sold our property management division that I had started years ago within our brokerage to provide property management services to investors who we represented in a purchase. We always communicated within 24 hours of receiving a call or email from an owner and quickly provided any information requested. The property management company that we sold to isn't quite as fast with communications but they do a good job. Communication is key in that business and you need to be sure the new company that you choose to go with is good with and agreeds with your expectations on communication. If your property management agreement states that the management company will do certain things within certain time frames and then they do not follow through on those things, it is grounds for cancelling the agreement and depending on what it is, possible grounds for a formal complaint with the licensing authority. When you transfer, yes, the current property management company is bound by the management agreement until th final day of the agreement (or the last day it's active which would be the 30th day after the 30 day notice is given). Also, the security deposits or any funds being held on your behalf or the tenant's behalf should be passed along to the new management company to be held in their escrow account or dispersed to you if it's money that should have already been paid out to you. Feel free to ask any more questions and I'll do my best to help. I'm a broker and previous property manager as well as a real estate investor who currently self managed some of my properties and I have several with a management company. (FYI I'm not an attorney so none of this should be taken as legal advice 🙂)

Thank you so much @ClintBolton It is unfortunate, but thank you so very much for all your details, right now I am trying to get them to answer if they are going to collect my rent...or if the 15 day past due rent is why they are non-responsive, my fear is that they are giving 30 days notice so they will not have to do an eviction as my renter has not paid for Nov. and I will for sure be providing formal complaints as I have loads of emails as evidence to their lack of basic property management. I am really trying hard not to let it defeat me, but I feel at such a loss from so far away, tomorrow it should help in talking with a new company hopefully they will be able to help me navigate through this. Wishing I had your knowledge but I guess all learners have to start somewhere. :)