All Forum Posts by: Puja Devi

If your PM is licensed in their state then start by going to their regulatory board (e.g., The Colorado Real Estate Commission) to file a complaint. If you hired an unlicensed PM then good luck ever getting that money back.

 Agreed. Agents who generally take on small portfolios to manage are only doing so because they're not great agents to begin with.

First thing first, I would consider either driving by the properties or contacting the tenants and asking them if they know what's going on with the agent. Their tenants may be able to tell them what's going on.

I would follow that up with a visit to the agent's office. Then notify the real estate commission and file a complaint.

Do not call an attorney. This is too small an amount and will waste your time. I recently had a claim of $25,000 against a CPA and all the attorneys told me it was too small an amount to bother with. They suggested another route, which I took, and the CPA offered to pay me $10,000 to make the problem go away, which was more than I expected.

Contact the Ohio office of Real Estate and Professional Licensing: https://com.ohio.gov/divisions-and-programs/real-estate-and-...

Ask them how to file a complaint against a licensed property manager. They should point you to the right office. When you initiate a complaint, the first thing they will do is let the PM know a complaint has been filed against them. They will encourage the PM to resolve the issue and make it go away. There is a very good chance the PM will drop the charge just to get rid of you. Nobody wants the state investigating their files, even if they are 100% innocent.

Come back and let us know how it goes.

I have all of the documents; the case is quite black and white in that regard.  

In Oregon, the case must be presented to the PM first (which is the professional first step anyhow), followed by an appeal to the Realtor's Licensing Board, and ultimately court (small claims or other as appropriate).

I'd like to hear if anyone has faced a similar or same situation (as the owner or the PM), how they approached it, and if it was worth the effort.

Thanks All for your responses. We have notified the current PMC of termination, and the company has agreed to work with us to come to an amicable resolution on open issues. Let's see how it goes. We have also started the due diligence process of selecting the next PMC. Any PMC suggestions for this area would be great. The property is in Rivertown, MO. 

I know it's difficult, but I would probably send the PM a demand that you they are not allowed to accept any more partial payments. The tenant must pay in full or the PM is to evict. I would also demand they act on your instructions to have the unauthorized animals and tenants removed. Let them know you will hold them financially responsible if they fail to follow your instructions and that you may file a complaint with the commission.

If they refuse to communicate or act, file a complaint with the commission. Just knowing that a complaint has been filed will likely motivate them to change their behavior and avoid an investigation.

In the meantime, start looking for a new property manager. 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. Regardless of how you find them, try to interview at least three managers.

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

2. Review their management agreement. Make sure it explicitly explains the process for termination if you are unhappy with their services, but 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, 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. Think of 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. The fact that a tenant is complaining online might be an indication the property manager dealt with them properly so be sure to ask the manager for their side of the story.

7. Look at their marketing strategy. Are they doing everything they can to expose properties to the widest 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!

Hi @Olivier Colson - I'm a broker & investor in NYC/NYS. I own properties with section 8 tenants and am currently in the process of organizing the leases so as to sell the properties vacant next year. 

You're correct, the housing authorities in your area are going to be super tenant friendly. I speak from experience as a landlord trying to adjust the section 8 provided rental rates EVEN AFTER HUD issued new guidance on my zipcodes.

You can try to not-renew the current leases but prepare for a potentially uphill battle. You will have to first notify the tenants' case manager at their local housing authority who will likely want to dig into why you don't want to renew - in which case like others have mentioned, it's a good time to lawyer up and/or document every instance of them breaking lease guidelines.