My Property Manager From Hell

August of last year Mrs. YFS and I decided to dip our toes into the rental real estate market. We choose one of best areas for rental properties in my opinion. This is an area with cheap properties, high rent to ownership ratio’s and tons of government assistance. Despite the negative press section 8 tenants get, our experience with payments has been great!…. So far

Our problem wasn’t the tenants it was a low integrity piece of shit property manager. You see, we interviewed about 10 property managers and only 2 would take our small portfolio of no homes at the time. I wasn’t going to buy a rental property out of state then look for a property manger. This is the mistake that one too many out of town landlords make. They identify a property then look for someone to manage it. Rookies! I wanted a team in place before we purchased the first home.

Besides, who knows the rental market better than a seasoned property manager who lives in the area? No matter how savvy or smart I think I am. Nothing makes up for actual experience with the market you’re serving.

It came down to two companies and 1 of them backed out of the interview at the last minute. So, by default we went with this guy. Everything was fine and dandy until money changed hands. Then all his promises went out the window. Fast forward about 6 months into the management of our property with this guy and all types of bad stuff starts to pop up.

Let me share an email exchange with you between me and our “ex” property manager.

Me:

I received a $70.00 bill for “Improperly prepared Material refuse out on wrong day” the volume was 2.0 cubic yards. The city removed the items on 6/21/11 Can you look into why the city had to remove 2 cubic yards of litter from property 1? Please see the attached file for the official notice from the city. Thank you

Him:

I’ll check on it

Me:

(2 weeks later) Were you able to follow up on the non-compliance notice? This notice coincides with the removal of the fence. Was the fence debris removed completely from the property 1’s site or set out for the city to take?

Him:

Yes it’s probably for the old fence. . You may have to pay for disposal of the fence materials from the City. We did not figure this cost into the cost of removing the fence. The City normally takes everything but they must have determined this amount of debris is over the limit they will take. Normally a debris person would charge upwards to $300 to remove it and take it to the dump. The price the City is Charging is much cheaper that a private debis hauler would have charge. I guess the only thing for you to do is pay it.

Me:

The city is not charging a 60 dollar fee for taking the debris. The city is charging a 60 fee for putting the debris out on the wrong day. The notice states “Improperly prepared material, refuse out on wrong day”. I don’t think I should have to pay a fee for a mistake that was caused by your contractor.

Him:

Would you like me to charge you $300 for debis removal from the property? Instead of $60 from the City?

Me:

The city did not charge for debris removal. Your contractor was correct for putting the debris on the street for the city to take. What was done incorrectly was the day the debris was put on the street. Hence, a private contractor was not needed for debris removal.

Him:

If you had of paid $300 for removal at the beginning we wouldn’t be having this crazy discussion. Pay the $60 no matter what day it’s supposed to go out. You don’t understand what we go through here with the City. You have to trust me that I’m taking care of you. If you don’t then hire someone you do Trust!!! End of Discussion!!

Me:

You’re confusing me. I paid what you quoted me and what you quoted me only. I was provided 1 price for removal and 1 price for removal + rebuild. I chose removal. Which you told me included removal of the fence and debris. Then I receive a bill for 60 dollars from the city so I was curious as to why. Then I find out the non-compliance letter is for fence debris put out on the wrong day so I notified you. This has nothing to do with trust, this has more to do with me receiving a bill for what I thought was taking care of. But, if you won’t take care of it, I will. No problem, have a nice day.

Him:

Yes Please take care of this bill from the City. Now that I know what it’s for then It’s something you need to pay. It’s much cheaper for you to pay this than it would have been for me to increase the cost of the project by a larger amount. I didn’t do that is because I got the job done for a very inexpensive cost in the first place. You need to trust my decisions for your property. I work very hard so that you make a profit.

Those who know me personally know that this didn’t sit too well with me. This was just one of many altercations that me and this gentleman had concerning our rental properties. I’m glad I followed my gut on this one and didn’t purchase more properties in the first year without testing him out. I believe in systems and efficiency and despite my lack of knowledge at the time of the real estate market of Upstate NY. I know how to effectively lead a project and build a team.

This particular team member who happens to be integral to our real estate success just wasn’t working out. Any question of his methods or proposal was with met with a “just trust me, or you have to trust me” verbage. As my knowledge of real estate grew I started to realize he was not working in our best interests, but I’ll write these thing later.

Let’s get back to the story.

Me: (a few weeks later)

I would like to discontinue using <name of his company> as the property manager for my property effective 9/1/2011. I think you would agree that our differences in personality, business experience and goals are too much of a hurdle for us to establish and sustain a professional business relationship.

Moral of the story: Never ever ever ever do business with someone who does not keep your best interest at heart. My wife simple said “I’m surprised you lasted this long with him”

Oh and this is how he responded to my request for termination.. He’s such a classy one isn’t he?

Him:

Let me know next year if you made the right decision of not taking my advise on purchasing Investment properties and also for moving your properties to a non legal property management company. Your new property management company is not a NYS Licenced Real Estate Broker and he can’t be held liable for your investment properties or your money here. I’m a licenced professional Real Estate Broker and all my actions are regulated by NYS. You have no recourse with this illegal Property Management Company. In NYS you must be a Licenced Real Estate Broker to own a Property Management Company or your breaking the law. Good Luck because your going to need all the luck you can get.

I got quite a chuckle out of his response. The reason being is that I performed a significant amount of research and inquired with several real estate agents and insurance brokers about my current property manager. Needless to say all his claims were false. My reply was simply.

Me:

Thank you for your concern. I wish you the best.

Reader thoughts!

What are your thoughts on my property manger from hell?