Burned by property manager, seeking a new one and advice!

[Elizabeth Aguilera]

We have a newly renovated property in Baltimore that has been empty for a few months because we lack a PM.  (This is an out of state property for us)

Last year, we connected with a property manager through these forums at BP. We did interviews with them, etc. A few months into the process they ghosted us and then when the owner resurfaced more than a month later she said she was no longer going to do PM. She agreed to refund a portion of our money since they never completed the onboarding process. That was in April. Since then, she has sent the keys as agreed but hasn't produced the payment as she promised.  

Two questions: 

Is there something else  I can do before I blast their name everywhere with an accurate review of what happened and how terrible they are and/or file in small claims?

And....does anyone know of a great property manager in Baltimore we can check out? We'd love to connect with someone that others have hired in the past.

Thank you!

[Joe Norman]

Sorry to hear you are dealing with this. Maryland doesn't regulate PMs (which is a whole other story), however if the PM does have a real estate sales license (i.e., they're a Realtor) then they can be subject to discipline by the Maryland Real Estate Commission, and you can be compensated from the MREC Guarantee Fund. I don't think we're allowed to post links but if you Google "maryland real estate commission guarantee fund" then one of your first links should be to "File a Complaint". I suggest you do this regardless of whether the PM is licensed or not.

Pro Tip: Even in states where licenses are not required for a PM, it's always a good idea to hire one who has voluntarily obtained one. This gives the owner client peace of mind as well as some protection.

Non-humble self promotion: I own and operate Blue Door Residential Property Management (and am fully licensed) and would be happy to talk about your needs if you want to shoot me a PM.

[Nathan Gesner]

Just because someone is a property manager doesn't mean they are a good one. You must do your research to verify they are competent in the field. The answer above from Joe indicates he would be a good place to start.

Remember: cheaper doesn't mean you'll make more money.

Start by going to www.narpm.org to search their directory of managers. These are professionals with additional training and a stricter code of ethics. It's no guarantee but it's a good place to start. You can also search Google and read reviews. Try interviewing at least three managers.

1. Ask how many units they manage and how much experience they have. Feel free to inquire about their staff qualifications if it's a larger organization.

2. Review their management agreement. Make sure it explicitly explains the process for termination if you are unhappy with their services, especially if they violate the terms of your agreement.

3. Understand the fees involved and calculate the total cost for an entire year of management so you can compare the different managers. It may sound nice to pay a 6% management fee but the extra fees can add up to be more than the other company that charges 10% with no additional fees. Fees should be clearly stated in writing, easy to understand, and justifiable. Common fees will include a set-up fee, a leasing fee for each turnover or a lease renewal fee, marking up maintenance, retaining late fees, and more. If you ask the manager to justify a fee and he starts hemming and hawing, move on or require them to remove the fee. Don't be afraid to negotiate, particularly if you have a lot of rentals.

4. Review their lease agreement and addenda. Consider all the things that could go wrong and see if the lease addresses them: unauthorized pets or tenants, early termination, security deposit, lease violations, late rent, eviction, lawn maintenance, parking, etc.

5. Don't just read the lease! Ask the manager to explain their process for dealing with maintenance, late rent, evictions, turnover, etc. If they are professional, they can explain this quickly and easily. If they are VERY professional, they will have their processes in writing as verification that policies are enforced equally and fairly by their entire staff.

6. Ask to speak with some of their current owners and current/former tenants. You can also check their reviews online at Google, Facebook, or Yelp. Just remember: most negative reviews are written by problematic tenants. A tenant complaining online might indicate that the property manager handled them appropriately, so be sure to ask the manager for their side of the story.

7. Look at their marketing strategy. Are they doing everything possible to expose properties to the broadest possible market? Are their listings detailed with good-quality photos? Can they prove how long it takes to rent a vacant property?

This isn't inclusive but should give you a good start. If you have specific questions about property management, I'll be happy to help!

[Drew Sygit]

@Elizabeth Aguilera are they even in the business anymore?

How much money are you out? Is it even worth pursuing?

[Saeed Jacob]

Quote from @Joe Norman:

Sorry to hear you are dealing with this. Maryland doesn't regulate PMs (which is a whole other story), however if the PM does have a real estate sales license (i.e., they're a Realtor) then they can be subject to discipline by the Maryland Real Estate Commission, and you can be compensated from the MREC Guarantee Fund. I don't think we're allowed to post links but if you Google "maryland real estate commission guarantee fund" then one of your first links should be to "File a Complaint". I suggest you do this regardless of whether the PM is licensed or not.

Pro Tip: Even in states where licenses are not required for a PM, it's always a good idea to hire one who has voluntarily obtained one. This gives the owner client peace of mind as well as some protection.

Non-humble self promotion: I own and operate Blue Door Residential Property Management (and am fully licensed) and would be happy to talk about your needs if you want to shoot me a PM.

 Hey Joe, would like to connect with you about managing a few properties of mine in the Baltimore area, please reach put at your earliest convenience 

[Russell Brazil]

Yeah as @Joe Norman mentioned above, Property Management is an unlicensed activity in Maryland. Id actually like to see that change...and both Joe and I are both heavily involved in lobbying in Maryland. 

If the person was a licensed real estate agent, there could be recourse against them. But any random dude off the street can call themselves a property manager in Maryland.

I self manage my properties in other parts of Maryland. If I did own properties in Baltimore, without question I would hire a reputable property manager. Baltimore has a lot of landmines on landlord/tenant issues.   It's a place that requires specialized knowledge, skills and processes. Dont just hire even a random agent who says they do PM. Got to be someone who knows what youre doing.

Looks like you reached out to Joe for PM. Youd be in good hands with him.

[Elizabeth Aguilera]

Quote from @Joe Norman:

Sorry to hear you are dealing with this. Maryland doesn't regulate PMs (which is a whole other story), however if the PM does have a real estate sales license (i.e., they're a Realtor) then they can be subject to discipline by the Maryland Real Estate Commission, and you can be compensated from the MREC Guarantee Fund. I don't think we're allowed to post links but if you Google "maryland real estate commission guarantee fund" then one of your first links should be to "File a Complaint". I suggest you do this regardless of whether the PM is licensed or not.

Pro Tip: Even in states where licenses are not required for a PM, it's always a good idea to hire one who has voluntarily obtained one. This gives the owner client peace of mind as well as some protection.

Non-humble self promotion: I own and operate Blue Door Residential Property Management (and am fully licensed) and would be happy to talk about your needs if you want to shoot me a PM.

Joe, thank you for your knowledgeable response! I really appreciate it. 
Yes, this person is a licensed real estate agent in Maryland so this is a great place to start. I'm going to follow your advice and file a complaint through MREC. Even if we are never compensated we definitely want to put this on the record for others or at least for the MREC.
We own several units in other states and self-manage but want a PM in Baltimore because it is a unique city.
I'd love to talk to you about our PM needs and I'll send you a message. 
Thanks again! 

[Elizabeth Aguilera]

Quote from @Nathan Gesner:

Just because someone is a property manager doesn't mean they are a good one. You must do your research to verify they are competent in the field. The answer above from Joe indicates he would be a good place to start.

Remember: cheaper doesn't mean you'll make more money.

Start by going to www.narpm.org to search their directory of managers. These are professionals with additional training and a stricter code of ethics. It's no guarantee but it's a good place to start. You can also search Google and read reviews. Try interviewing at least three managers.

1. Ask how many units they manage and how much experience they have. Feel free to inquire about their staff qualifications if it's a larger organization.

2. Review their management agreement. Make sure it explicitly explains the process for termination if you are unhappy with their services, especially if they violate the terms of your agreement.

3. Understand the fees involved and calculate the total cost for an entire year of management so you can compare the different managers. It may sound nice to pay a 6% management fee but the extra fees can add up to be more than the other company that charges 10% with no additional fees. Fees should be clearly stated in writing, easy to understand, and justifiable. Common fees will include a set-up fee, a leasing fee for each turnover or a lease renewal fee, marking up maintenance, retaining late fees, and more. If you ask the manager to justify a fee and he starts hemming and hawing, move on or require them to remove the fee. Don't be afraid to negotiate, particularly if you have a lot of rentals.

4. Review their lease agreement and addenda. Consider all the things that could go wrong and see if the lease addresses them: unauthorized pets or tenants, early termination, security deposit, lease violations, late rent, eviction, lawn maintenance, parking, etc.

5. Don't just read the lease! Ask the manager to explain their process for dealing with maintenance, late rent, evictions, turnover, etc. If they are professional, they can explain this quickly and easily. If they are VERY professional, they will have their processes in writing as verification that policies are enforced equally and fairly by their entire staff.

6. Ask to speak with some of their current owners and current/former tenants. You can also check their reviews online at Google, Facebook, or Yelp. Just remember: most negative reviews are written by problematic tenants. A tenant complaining online might indicate that the property manager handled them appropriately, so be sure to ask the manager for their side of the story.

7. Look at their marketing strategy. Are they doing everything possible to expose properties to the broadest possible market? Are their listings detailed with good-quality photos? Can they prove how long it takes to rent a vacant property?

This isn't inclusive but should give you a good start. If you have specific questions about property management, I'll be happy to help!

Nathan,
Thank you for your very specific points. We interviewed her pretty in-depthly but we didn't ask to speak to other clients or check on some of the other points you mention. This is super helpful.
As we begin to look again we will keep a copy of this list handy. 
Thanks again.

[Elizabeth Aguilera]

@Drew Sygit, 

Good questions. I'm going to take @Joe Norman's advice and file with the state real estate commission. She is a licensed realtor and said she handed off her property management to a contractor, who didn't do a good job. She then decided not to do PM work anymore but she didn't let any of the clients know until we bugged her for more than a month to respond. I was wondering if it was even worth it and while we may never get our money back I'm glad there is an avenue to file a complaint.

Thanks!

[Elizabeth Aguilera]

Quote from @Russell Brazil:

Yeah as @Joe Norman mentioned above, Property Management is an unlicensed activity in Maryland. Id actually like to see that change...and both Joe and I are both heavily involved in lobbying in Maryland. 

If the person was a licensed real estate agent, there could be recourse against them. But any random dude off the street can call themselves a property manager in Maryland.

I self manage my properties in other parts of Maryland. If I did own properties in Baltimore, without question I would hire a reputable property manager. Baltimore has a lot of landmines on landlord/tenant issues.   It's a place that requires specialized knowledge, skills and processes. Dont just hire even a random agent who says they do PM. Got to be someone who knows what youre doing.

Looks like you reached out to Joe for PM. Youd be in good hands with him.

 Thanks Russell! 

I'm going to follow @Joe Norman's advice and follow up with the MREC. The person we hired is a licensed realtor so I hope this is helpful for us and for anyone else who might work with her. We self-manage in other states but decided we wanted someone to PM in Baltimore because it's so unique there. 

Thanks again.

[Jessica Stinnette]

You should also consider posting reviews of your experience with facts, not opinions, to the public for their awareness. This should include google & yelp as many seeking property management go online to read reviews, too.