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My property management company and I just broke up. The house is rented, tenant just moved in a month ago, lease goes through June of next year. I'm very tempted to save myself the 10% of the rent ($65) each month by just having them mail the check to me now. I get the feeling I'd live to regret to this. It sounds easy enough, but I keep having little questions like - do I need to get them to sign a new lease or is the old one still valid even though the landlord is now different? Can I just write an addendum thingie?
I'm actually thinking that if I can figure out the lease thing, the rest won't be so bad. I mean, yeah, things can break and I'd have to fix 'em, but I can make phone calls from Charlotte just as easily as from Detroit (oh, didn't I mention I live 700 miles away from the house?).
Yes and from this quote "I'm actually thinking that if I can figure out the lease thing" yes yes yes
I do it all myself but not 700 miles away a good PM will be worth the 65 bucks you need someone to look after your investment you can not do it from 700 miles away.
First of all, re-read your agreement. Is there no clause covering the issue of the fact that your property manager put this tenant in the property and is due at least a portion (usually 1/2) of the commission for the balance of the term? Don't you have to give them some kind of Notice?
Why did you " break up " with this company?
yes, you need a professional management company. Interview a few on the phone, ask to see their management agreements and what ever else they require (insurance liability rider for instance), and see if you might be able to get a recommendation from a realtor you might know in the area. You are too far away for this to work out well for long, without one.
*sigh*
Yeah, I figured that's what y'all would say. And I suppose I agree. I was just sort of hoping that there'd be a chorus of "nah, there's nothing to it! Here, let me rewrite that lease for you! And I'll send you cookies, too!"
Thanks for the advice, guys.
Quote:
Originally Posted by KonaKat
First of all, re-read your agreement. Is there no clause covering the issue of the fact that your property manager put this tenant in the property and is due at least a portion (usually 1/2) of the commission for the balance of the term? Don't you have to give them some kind of Notice?
Why did you " break up " with this company?
Wow. Assume much?
While I'm sure my ex-property manager would thank you for your concern for their well being, I find it interesting that you assume I ended the relationship. Without giving any notice no less. Rest assured I've read the agreement many times, and have broken no part of it.
No it was actually your well-being (as far as possibly breaking a contract that could cause sticky legal problems) that I was addressing although, yes, I did infer from your post that you had ended the relationship. We have had a couple of owners decide to go elsewhere for whatever reason and they appeared very surprised that we planned on holding them to the contract regarding notice and commissions on existing tenants or bookings.
It's just somewhat unusual for the company to be the one ending a business relationship but of course, it does happen. I should have said "why was the agreement terminated" perhaps.
It appears that your ex-property management company worked diligently to find you a good tenant. One month after the tenant moves in and signing a one-year lease, did you terminate the management company thinking you can save $65.00 a month and the "hard and time consuming work" was over - and it would be so easy for you??? This is the reason why property management companies have contracts for 6 months or a year stipulating if the owner cancels, they are liable for the balance due to the PM for the "scheduled rent".
Please, please get a property management company. My old landlord was a couple hundred miles away and it was absolutely miserable. Whenever anything went wrong (and it did....often) it took him a few days to get back to me, much less fix anything. Emergencies?? HA. We had our electricity go out due to faulty wiring and we went 4 days without hearing from him after repeated calls and emails. Plus, when any work was done we had to fax over quotes, get those approved, send pictures of the finished product, plus receipts and whatnot to 'prove' it was done. Huge hassle.
I tried talking our old landlord into getting a property management company to take over but he refused. I would highly recommend getting a PM if you are that far away from your rental... it will save you and your tenants a lot of headaches.
If you're in town, maybe not. 700 miles away, I'd say yes unless you have someone who can help you. You can "make calls" from 700 miles away but sometimes you need someone you can trust to give the big picture.
It appears that your ex-property management company worked diligently to find you a good tenant. One month after the tenant moves in and signing a one-year lease, did you terminate the management company thinking you can save $65.00 a month and the "hard and time consuming work" was over - and it would be so easy for you??? This is the reason why property management companies have contracts for 6 months or a year stipulating if the owner cancels, they are liable for the balance due to the PM for the "scheduled rent".
You fail at guessing/speculating. Interesting little story you came up with there, though.
My thanks to the people who managed to simply answer my question and give their advice. I do believe I'll follow it.
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