Problems before any lease signed

[David Dokter]

Not sure what to do here, I have a new property manager relationship for a duplex. One side has been listed for about 2 1/2 months, I keep being told that it’s getting “great activity”, “wont last long” and will be rented “end of this week”, every two weeks or so when I have to call to check in. I’ve been told this on and on for months.

The other side I was told was listed before the tenant living there moved out, but has sat empty for a month after move out still hasn’t been cleaned, updated or repaired and I haven’t been given any assessments. I also haven’t seen any active listings for it similar to the first unit listing. I have to reach out every time to check in, and I feel like everything’s an exaggeration or runaround to kick the can down the road yet nothing is happening at all.

I signed a contract and I know some expenses have been shouldered such as photos and clean out of the first unit, so not sure of my options or if this is all normal. I have units in other states and have never had this issue before. Can I back out now at this point?

[Noah Laker]

Sounds like an inattentive PM and presumably they've violated the contract (I'm not a lawyer, talk to your lawyer). 

If I were you, I'd fire them fast and get a new PM involved quickly. Vacancy is often your greatest expense as a landlord. 

[Noah Laker]

Sounds like an inattentive PM and presumably they've violated the contract (I'm not a lawyer, talk to your lawyer). 

If I were you, I'd fire them fast and get a new PM involved quickly. Vacancy is often your greatest expense as a landlord. 

[Melanie Thomas]

Hi David, I would recommend you read your property management agreement to find out exactly what you can do without incurring any termination fees. Will likely be minimal since the units are currently vacant. Best of luck to you!

[Patricia Steiner]

What starts out crazy, only ends crazier.  

Pull out that PM Agreement and find out how the requirements to terminate. If it will be painful to do so under the Agreement, I would let the PM know that you need daily updates on what is being done to rent your property and set up a time for that call.  You're going to have to make yourself a priority in that PM's life and/or suggest that you mutually agree to terminate.  

What you've experienced would be unacceptable to me.  My recommendation:  BOLT!

[Chris Seveney]

@David Dokter

1. Read the agreement to see what it says

2. Even if it’s not clear, have the discussion with the PM that is “hey this isn’t working out and it’s best we part ways” - even if you have to throw some $ at him it will be in your best interest to do so and save you in the long run

[Michael Smythe]

@David Dokter not uncommon service from a PMC, but not acceptable.

Your PMC should be giving you regular updates, NOT you calling them.

If both units are vacant, this is the best time to change PMCs.

Review your contract for termination procedure and fees.

[Nicholas L.]

@David Dokter

you haven't provided us with a lot of information here.  it sounds like your PM has definitely fallen down on the job here... but I also have to ask, what was agreed to, and what have you done?  is the unit in good shape?  are the photos good?  is the price reasonable?  are you getting any showings?  we in the forums don't have any of this info.

and... you say the empty side hasn't been cleaned, updated or repaired... OK... how much does it need, who was supposed to do what, and by when?  how much will it cost?  was the PM expecting you to find contractors if the repairs were major?

you say you have units in other states so... just to be candid... i'm a little surprised at how passive you're making your own role sound.  you manage the managers, right?

[Prashant P.]

The other question is your rent in line with the market?  Did you specify the rent that you want or did the PM specify the market rent.  

If you specified a high rent, the PM will have a difficult time renting the unit.

[Nathan Gesner]

Quote from @David Dokter:

A good PM will communicate with you proactively, and they certainly won't allow a rental to sit vacant for two months without some serious conversations.

I recommend you read the PM Agreement to see what is required for termination and move these properties to someone that knows about customer service. Your agreement may include some termination fees, but you should demand these be waived. Pay them for the expenses they've incurred, but do not pay them anything else because they've failed to perform to standard.

If they insist on cahrging termination fees, threaten to report them to the State Commission. That will usually get them to drop you and walk away.

[Tim Bratz]

It feels like you've already identified that this person/management company isn't for you. I'd move on quickly, and make sure that you set up clear expectations with the next people you have managing your properties. Making sure third-party management controls the controllables is big. What is well within their control that could lead to vacancies getting filled?