DisHonest Property Management Company

9 Replies

Anyone in the Indianapolis area familiar with Honest Property Management Company or their owner Annie Scott? If so, I’d like your opinion. If not, avoid them like the plague.

The name of this company should be DisHonest Property Management Company. The owner, Annie Scott, speaks out of both sides of her mouth so often, she literally can’t remember the last lie she tells you.

We bought a property from her last year and subsequently hired HPM to manage the rental for us. As we are OOS investors, we relied on Annie to protect our best interests while also accounting for the well-being of the tenants.

Unfortunately, Annie’s standards for acceptable living conditions are FAR below anything we’ve ever seen and not what we want for our tenants. The filth and accumulation of garbage she allowed the tenants to live in was something out of the show ‘Hoarders.’ It was obvious that the annual inspections her company was contractually obligated to make of the property, either didn’t get done at all or was done and never followed through on.

As we had inherited these tenants when we purchased the property, we had to keep them until their leases expired. One particular tenant (the one who had the most abhorrent living conditions of all) was renting from us for 3/4 of market rent and when we suggested the rent be brought to close to market, she refused to do it.

The total cost to rehab the property once that tenant moved out was close to $25k. Needless to say, we fired Annie and DisHonest Property Management shortly thereafter. We’re still trying to recoup some of the damages done to our property under her watch 3 months later.

Annie is a nice person. I could never tell if she was intentionally deceiving, incompetent or both though. In any event, I would never rent from her or hire her to manage any of my properties again.

To be fair, you could lead a horse to water . . . .  If a tenant chooses to live in filth, a PM has a limited arsenal of weapons at her disposal.  What did you expect her to do?  Issue a citation? There's nothing in your OP to suggest you authorized her to evict.  

Sounds like an AWFUL experience.  I'm a property manager in Detroit.  I was always worried someone would become a hoarder because it's actually a protected class because it's a mental health disability.  If it came to that, I would have to just give lease violations for the trash.  The courts always favor the tenants too so if they were there under a year, it could be a real issue because it is so much harder to evict if they were paying the rent.  It seems she could have raised the rent significantly at the year end and then evicted the tenants based on nonpayment of rent.  That's a faster eviction. There could have been things missed in the prescreening.  I just made a Youtube video about paying people a home visit before renting to them in my Secrets of Section 8 Revealed playlist.  That would have shown they were hoarders.  

 I'm very sorry you went through that experience.  Out of State investors have risks.  The relationship between a property manager and investor needs to be built on trust. We try to get our investors to come to Detroit and spend a few hours with us.  It's been tough with the pandemic!  People aren't game for a trip right now.  The trust needs to be both ways too.  We don't work with every investor who has come here for a tour.  When I don't like them, I use sign language in the car to my husband to find a really bad area and let's push them out of the car and take off.  I'M KIDDING!  But it has been tempting.  I do hope things go well for you going forward!  

@Kyle Smith dealing with a garbage PM is a lousy experience.  Thanks for sharing.  We need more posts like this so that we can all avoid mistakes, learn from one another and hopefully, put terrible businesses out of business.   

Originally posted by @Kyle Smith :

Anyone in the Indianapolis area familiar with Honest Property Management Company or their owner Annie Scott? If so, I’d like your opinion. If not, avoid them like the plague.

The name of this company should be DisHonest Property Management Company. The owner, Annie Scott, speaks out of both sides of her mouth so often, she literally can’t remember the last lie she tells you.

We bought a property from her last year and subsequently hired HPM to manage the rental for us. As we are OOS investors, we relied on Annie to protect our best interests while also accounting for the well-being of the tenants.

Unfortunately, Annie’s standards for acceptable living conditions are FAR below anything we’ve ever seen and not what we want for our tenants. The filth and accumulation of garbage she allowed the tenants to live in was something out of the show ‘Hoarders.’ It was obvious that the annual inspections her company was contractually obligated to make of the property, either didn’t get done at all or was done and never followed through on.

As we had inherited these tenants when we purchased the property, we had to keep them until their leases expired. One particular tenant (the one who had the most abhorrent living conditions of all) was renting from us for 3/4 of market rent and when we suggested the rent be brought to close to market, she refused to do it.

The total cost to rehab the property once that tenant moved out was close to $25k. Needless to say, we fired Annie and DisHonest Property Management shortly thereafter. We’re still trying to recoup some of the damages done to our property under her watch 3 months later.

Annie is a nice person. I could never tell if she was intentionally deceiving, incompetent or both though. In any event, I would never rent from her or hire her to manage any of my properties again.

 I'm confused my man. You accused this PM of talking out of both sides of her mouth but it's actually you who appear to be talking out of both sides of your mouth. On one hand you complained that she didn't fix anything. On the other, you complained about the $25,000 you had to spend to fix the property. Which one is it? You're either mad she didn't fix the property or you are mad that you had to pay to fix property. If you have a credible issue with your property manager it cannot be both. It sounds to me like the reality and cost of property management and the rental property business just set in. It's the business itself and your lack of experience in it that's upsetting to you.

@Kyle Smith this is a case of trust but verify. Some of it could have been avoided if you asked for pictures from their annual inspections, If they were contractually obligated to do inspections, then they should have been providing pictures.

Originally posted by @Kyle Smith :

Anyone in the Indianapolis area familiar with Honest Property Management Company or their owner Annie Scott? If so, I’d like your opinion. If not, avoid them like the plague.

The name of this company should be DisHonest Property Management Company. The owner, Annie Scott, speaks out of both sides of her mouth so often, she literally can’t remember the last lie she tells you.

We bought a property from her last year and subsequently hired HPM to manage the rental for us. As we are OOS investors, we relied on Annie to protect our best interests while also accounting for the well-being of the tenants.

Unfortunately, Annie’s standards for acceptable living conditions are FAR below anything we’ve ever seen and not what we want for our tenants. The filth and accumulation of garbage she allowed the tenants to live in was something out of the show ‘Hoarders.’ It was obvious that the annual inspections her company was contractually obligated to make of the property, either didn’t get done at all or was done and never followed through on.

As we had inherited these tenants when we purchased the property, we had to keep them until their leases expired. One particular tenant (the one who had the most abhorrent living conditions of all) was renting from us for 3/4 of market rent and when we suggested the rent be brought to close to market, she refused to do it.

The total cost to rehab the property once that tenant moved out was close to $25k. Needless to say, we fired Annie and DisHonest Property Management shortly thereafter. We’re still trying to recoup some of the damages done to our property under her watch 3 months later.

Annie is a nice person. I could never tell if she was intentionally deceiving, incompetent or both though. In any event, I would never rent from her or hire her to manage any of my properties again.

Curious what the rough scope of work was for 25k ?   All for one unit?  How much was deferred maintenance?  

If the unit had a lot of deferred maintenance it may have been why it was rented out for 3/4th of market value. 

It is terrible if there was dishonesty going on here. However, if you inherited tenants, it is likely they were already living in unsanitary conditions of their own making. A PM can't really force the tenants to tidy up, and it is up to the owner to determine if they are willing to evict over these kinds of issues. Sometimes, it may not even be a straightforward eviction - you have to let the lease expire and issue a notice of nonrenewal, wait for them to either move out or not, and then proceed to eviction if needed.

I have seen houses in the condition you describe and usually those tenants have been there for YEARS and of course their rent is below market and after they move out, the cleanup and rent ready effort is massive. They usually leave tons of personal belongings behind, appliances full of rotten food, everything is absolutely filthy, and then only after you get a junk removal service (which with the dumpster will cost a few thousand dollars alone) can you actually assess the structural issues. Needless to say, a house like that will also need all new flooring, especially if they had carpet, and will need to be completely repainted. We can assume some drywall damage and usually kitchen cabinets are falling apart. Those are all big expenses individually, and will certainly add up.

The question I have is how much did you investigate the condition of the property prior to purchase?