I saw this on the news and thought it post worthy. A local "property management" CEO was sent to jail for bad rentals. I wonder how much of this type of thing is going on in my dear city?
I posted this this morning. Sadly this type of thing from what I have seen has only happened from the small time guy who is most likely not licensed.
Well, this was one of the guys that screwed me over, too. He is NOT licensed, which is what I found after the damage was done. Now that he is in jail, I can actually serve him even though there is very little chance I get some money back. McNutt was initially very reliable, did repairs for very reasonable prices, and even found me a possible lease purchase tenant that helped fix up my property. However, in lieu of getting a lease purchase option down payment, he gave the tenant two months free rent so in essence I paid for the repairs. The tenant paid McNutt in cash. As soon as I terminated my management agreement with him (based on losing another possible lease purchase tenant for a different property because he did not make the repairs in time as he promised), the tenant stopped paying me. Now I have to proceed with eviction.
Still after terminating my agreement with McNutt, he continued to harass one of my other tenants asking to inspect the property because he supposedly had a buyer. I was never informed of this until recently and I don't know how he could have sold my property without my consent but it may have been another scam he could have planned on the potential buyer.
Ironically, I got the news of McNutt's arrest from another management company I hired after McNutt and terminated also within a short period of time because they were going out of business without telling me ahead of time. Now they are eager to send me the past rents :-)
Thankfully, I am now with a very reputable management company that I was referred to that otherwise would not manage my few properties. In addition, I have an offer on one of my properties and just received a call from another potential buyer from my listings on postlets.com which posts to a large group of sites without any additional efforts.
Hey Sabrina, not sure how I missed your post, but just read it. I am sorry to hear of your woes here in Memphis. I am just cutting my teeth as a buy and hold investor. I am close to quitting the day job and making this my full time effort.
Even though I am new to the game, I see a lot of frustration from renters that I talk to and also local contractors that I work with. I think there are some significant issues with outside investment and poor property management here in town. I don't know if it is better or worse in other areas, but there are too many stories just like yours floating around regarding the Memphis market. It find it a bit embarrassing, because I am from Memphis and love my town.
I hope the situation has resolved itself and you are working with a good property manager.
I just saw the original post. I find it so funny when people who run and own small business use terms such as CEO, CFO, etc. That guy was no more a CEO as I am a Astronaut. Calling small business owners a CEO is an insult to actual CEO's. I have worked for real CEO's, it is a very difficult job that very few are qualified to do. CEO's typically are senior officers and report to a board of directors. President would is fine for larger small business with multiple employees. One person shops should be owner, manager, etc.
@Alex Craig I believe that was perfectly said.. I totally agree. I have worked with several CEO's as well. I have not found many that are truly qualified to hold that title.