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  • Bad Property Manager

    Hi all

    We have an executive home which is rented just down the road and decided to get a property manager. The manager put a unemployed single mother in there. We did not know she was not paying the total rent each week for a month. When we received our first statement I had to contact the property manger. During this month we had raised a number of concerns such as she had a dog, no dogs allowed, she did not change the power to her name we received a 500.00 power bill however the manger said they didn't deal with these things. We felt there could be drugs involved he did an inspection because he was trained no problem no drugs. oH AGAIN NO RENT So eviction process starts and the same day the notice was completed the armed defenders and every other emergency vehicle descended on the property YES YOU HAVE A METH LAB. So now I start looking and although difficult to get the information I did. The tenancy application was only half completed the references provided only one was checked and that was a personal friend so now I start checking guess what YOU HAVE IT THIS IS NOT THE TYPE OF PERSON ANYONE ONE NEEDS NEAR THEM. Our insurance company are saying we are not inclined to pay you anything as we have concerns. REALLY THEY HAVE CONCERNS The costs are mounting and we are now looking at close to 300,000.00 and of course our property devalued. OH YES AND THE MANGER DID NOT LODGE THE BOND. Where to from here FAIR GO? Any thoughts out there and I have only told you half the story.

  • #2
    Can you tell us a little bit about how you went about selecting your property manager?

    Comment


    • #3
      Assuming you are not a troll and putting aside your lack of vetting your PM there isn't much you can do now. You now own a P Lab and will have to do whatever is required to get it rentable again sadly. Make sure next time you check your property manager before engaging them.
      Again assuming this isn't a wind up it also sounds like the PM may have been working with the drug dealers so you would have criminal avenues to pursue if they have any money not hidden away.

      Comment


      • #4
        Legal action I'm afraid, you have two battles - the insurer being the main one. Don't try and fight this on your own.
        Free online Property Investment Course from iFindProperty, a residential investment property agency.

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        • #5
          We will not manage our properties through PMs after few bad experiences we had with them.As it was about 30 properties we owned , so decided to have few to get managed before releasing the whole lot & not a single PM company could accomplish it instead they incurred a huge loss from EVERY property they managed. They were the tenants that they found who let them/us down due to poor strategies they had. It's a bit sarcastic however, that's what it has been and I took those properties over after the bitter experience & renovated them & up the rent & found quality tenants to move in & they continue on .


          I would rather manage properties myself and have a good 'power team ' of tradesmen, casual letting agent/s- to assist finding tenants, lawyer etc surrounded to manage better.

          When casual agents email me any/all Pre Applications, despite their pre tenancy vetting, I ALWAYS go through them personally all references , checks plus sometimes, drive bys of the prospective tenant applicant even after credit/reference checks been ticked off for more assurance. Of course, still things can go wrong, but then at least I have done my share and there's very less chance to turn things to worse, if we have the right systems in place to follow.

          We had boutique PMs to so called market leaders Auckland's leading real estate company and New Zealand's largest privately owned real estate company they equally the same, or worse- when things were not going well, when they didn't take action I even escalated to their Managers' Managers & their managers & CEO & they wrote a one line answer & simply signed themselves off : there was no accountability & always have fine print to escape. More recent incident was $20k loss due to PM 's pure negligence.

          Subsequently we decided better doing it our way, privately & connecting to like minded groups of other fellow investors etc, & truly it has been amazing & we enjoy the journey.



          There may be an odd occasion several properties are vacant as unable to get 'quality tenants in soon' , for an example these days loss of rent is $2300pw for few weeks/couple months, so we are giving a good reno in the interim and it doesn't really matter as there are other properties doing well and it balances the sheet plus with new Meth and H&S rules coming up we are not rushing to get those tenanted asap, as many gray areas still unrevealed & patiently seek tenants and do not sign them in till we get someone who we are quite confident that they are highly unlikely would cook/consume Meth & or be a troublesome tenant - it is a judgement call but at least it's a calculated risk.


          Also we are selling few so we can keep them managed plus it frees up time for us to enjoy other things we love to pursue in life.
          Last edited by Anita; 06-10-2016, 03:37 PM.

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          • #6
            Great post, Anita!

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            • #7
              We selected the Pm on the referance of their wonderful information.
              Last edited by revdev; 08-10-2016, 12:54 AM.

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              • #8
                Hi there " A Troll" can you plaese explain this term? Yes we vetted the PM and Know I will not allow this behaviour of PM to go un noticed to Land Owners as they derveserve honesty and quite frankly ligigation will cost a lot less than the issue of fixing the "P" house

                Comment


                • #9
                  Hi there

                  There is a way to fight contractual law and the Fair Traing Act, at this point we agree with the insurer but what about everyone out there Fair Go is an option also but happy for everyone to stand up. Although PM's seem self confident with their un regulated response from the government. This needs to change

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                  • #10
                    To all

                    Reading this we need to all stand together PM need a regualrtory body, frankly I will now manage our own properties.

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                    • #11
                      Hi Offo

                      This isn't good at all, I would look at taking them to D.Tribunal?

                      What are their fees? Are they expensive or cheap? A lot of landlords are attracted to cut price property management companies because they think they are saving money but really the cheapest becomes the dearest

                      Hope that helps
                      Fraser Wilkinson
                      www.managemyrental.co.nz
                      Wellington / Lower Hutt / Upper Hutt / Porirua

                      Comment


                      • #12
                        Originally posted by Don't believe the Hype View Post
                        Can you tell us a little bit about how you went about selecting your property manager?
                        A lot of landlords don't do this though, I can probably count on my hand over the last six years how many have sat down with me and actually interviewed me.....
                        Fraser Wilkinson
                        www.managemyrental.co.nz
                        Wellington / Lower Hutt / Upper Hutt / Porirua

                        Comment


                        • #13
                          You forgot to add "hope that helps" in the last post FJ :-)

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                          • #14

                            IMO, PMs (in general ) who we dealt in the past , when interviewed, they claimed or at least confided that they have the BEST systems under the sun, so confident and detail their strengths that they have admin staff and great bunch in the team to delegate so and so , however the 'outcome' has been the opposite.



                            I used to 'interview' them first 'undercover' /ie not quite identifying who I am purely to get to know them better ( ie may be emailing through their property listing online re rentals & or visiting the store asking questions about rentals & what they are looking & what needs it to apply etc etc ) to see primarily, if they worth at least been offered an interview to sit & chat as some of these PMs are worse than those tenants who apply to rent.


                            It could clearly worth hiring a PM, MAY be someone who does currently have a portfolio of properties in the same area where we intend to get them to manage might possibly do a better job, as they A)know the value of the investment B)know the socio economy area somewhat better , as they currently own/manage their own properties there


                            Personally, if I may EVER get a PM to manage any of our rentals in future, it may be a PM, possibly a 'boutique PM', with a part time one or two in their team, who DOES HAVE at least 5 current rentals that they OWN & manage for past 10 yrs at least but otherwise I wouldn't even waste time talking to them.


                            Just on another note, it was only last week a 'casual letting agent' of a leading company (who manages the largest portfolio in Manukau) highly commended of a prospective tenant & emailed their application with a note of recommendations & ask me to consider him and his partner, as they were nice and professional & also followed by phone call to speed up to secure them as the house has been vacant for few weeks. Due to the caliber of tenants she sent in the past & whilst I was in town to attend to another matter I asked the applicant to meet me and complete his partner's details too in the application to consider as Joint Owner/Landlord needs those before they make a decision. I got the forms & ran through references & the woman's ex landlord was gutted to hear that how brave she's been to apply for another property as they were still stripping the property where she just left up North which cost to them over $70k.Yes, PMs / Agents on casual basis assisting finding tenants is okay I use them purely as a ' pair of legs ' up to 'viewing' process( Casual Letting Agents have been briefed the criteria who the tenants we seek plus their application must be full information of Tenants required) so it limits the PTAs we receive from them. And collection of data/ accuracy /checking /decision making of choosing Tenants is purely done by us - as the saying goes once bitten twice shy.

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                            • #15
                              In 24 years I have yet to find an excellent PM.

                              My analysis is that they charge too little so have to take on too many clients in order to make a living.

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