Sometimes, you’ll need help managing your business. Bringing on contractors and property managers just makes sense as you grow, but that decision doesn’t always lead to positive results. It may be necessary to learn how you can file a complaint against property management companies.
In most cases, it’s tenants who complain about or take legal action against a property management company, but they are far from the only ones seriously affected by failing managers. The same goes for landlords. If their management company fails in their responsibilities, their entire business could be at risk.
What do you do when your property manager ignores you, causes problems with tenants, isn’t performing well, or is otherwise not doing his job? Learn how to immediately report poor property managers and where to report them.
Amazing Property Managers Support Landlords
Good property managers can make all the difference in managing multiple properties. Your properties will be managed by them, allowing you to balance what you do and how much time you spend on it.
What are the benefits of a top-quality property management firm?
Ideally, they’ll provide the following:
- Rent collection includes late payment fees and rent price setting.
- Tenant searches include screening and interviewing, as well as advertising and screening
- Tenant management: complaints, repairs, inspections
- Property maintenance, including routine maintenance, emergency repairs, and common areas.
- You should research the laws of your state and localities to ensure that all practices comply with them.
- Financial tasks include budgeting, financial reporting and taxes.
The exact tasks performed by any property manager depend on the company’s services and the contract you have in place. If you notice that your property manager is slacking off, taking fast action is essential to ensure you don’t lose tenants, spend too much, or get sued.
Property Management: When it goes wrong
Bad property managers can quickly become a problem. Negligent property managers can land you in legal trouble. You could be held responsible for mistakes made by property managers when they represent your rental company through contracts.
Property management is prone to negligence in many ways. These are the top issues you need to be aware of:
- Verification of violations of federal fair housing laws or state housing laws
- Tenant long-term injury can result from non-disclosure regarding serious topics, such as mold or lead paint
- Tenant safety is not being met by repairs
- You can enter a rented apartment without prior notice
- Illegally withholding security deposit for too long, or for incontinence
What to do if your property manager ignores you or your tenants
What do you do when you discover that your property manager isn’t performing to your standards? You take action. Here’s our step-by-step guide on what to do.
Step 1: Directly Address the Problem
Contact the property management staff and express your concerns. It is important to immediately communicate your concerns via email, phone, or letter.
The company may not be aware that a team member has fallen behind in their responsibilities. It is possible to resolve the issue by simply talking to the company.
Step 2: When possible, contact higher-level management
Contact the higher-ups if your property manager works for a contractor or reports to another department. Irresponsible managers aren’t going to solve your problems, but you may be able to get a high-quality replacement from the company.
Step 3: Go through your contract
Before you move forward, make sure that you fully understand the agreement with your property management company. You should find out exactly where the managers are not adhering to the agreement’s requirements and collect evidence.
It is also important to examine the termination and arbitration sections of the contract. These areas will explain what happens if you terminate the management agreement.
Step 4: Fire Your Property Manager
Don’t keep losing money—fire your property management team once you have reviewed the lease. You know they aren’t meeting the set goals, and it’s time to move on. They have already proven that they are unable to handle your business requirements, even if they wish to retain you as a client.
Step 5: Recover your Business Needs
It is now time to get your business back on track. Although you may eventually file a lawsuit against the property management firm to recover your losses, it is important to protect your future profits.
Resign from the management position and/or hire a company to do this as soon as you can. Make sure your tenants’ needs are met, and tell them that you are remedying the previous management issues. It is important to communicate this with tenants, because there might be issues that you don’t know about, or they may be upset.
Step 6: How to File a Complaint against A Property Management Company
Once you’ve secured your business, it’s time to file a complaint against the property manager or management company. This isn’t always a straightforward process. You might need to file a complaint with the holding company, the Better Business Bureau or any state agency that handles management licensure.
Contact the Owner
If you were working with a management team member, you would want to file a complaint with the company’s owner or boss as soon as possible. This may be something you have tried before, but it is important to alert the other party to the problems even after being fired.
Real Estate Association And/Or NARPM
If the manager is an NARPM member, or the local realty association, if licenses are needed in your area, you can file a complaint with them. These groups work together to create a code of conduct for property managers. Non-compliance with the code can result in a member being removed from the organization or other disciplinary actions.
Better Business Bureau
The BBB allows you to file a complaint. The Better Business Bureau will then contact your property manager in order to request a review of your rating. This could lead to positive action.
Sue the Property Manager
For your losses and other violations, consult an experienced real estate attorney. You may be able to recoup some or all of your losses, but this will depend on the manager’s business structure and several other issues.
Streamline your Tenant Screening
As you take back your property responsibilities, you’ll likely be overwhelmed with tasks. Finding new tenants soon falls behind in these situations, and that’s something all landlords want to avoid.
Save yourself time and money by streamlining your tenant screening process through RentPrep’s enterprise services. These screening options are great for landlords who need to process a lot of applications and work without the assistance of a property manager.
Have a look at our services today for enterprise clients.
FAQs on how to handle bad property management companies
Can I sue a property manager company?
To recover your losses, you may be able to sue the property management company if they don’t fulfill their contract. It will depend on what the contract says and if you can prove that you suffered a significant loss.
If the company caused your tenants injury or property loss, they may be able to sue you. However, this wouldn’t be an ideal situation for you. In the end, you want to support your tenant’s efforts for retribution.
It may be more difficult to sue an LLC if the property management company you work with is an LLC. LLCs are subject to different rules and have limited assets that can be claimed. To find the LLC owners and file the necessary filings, a specialist real estate company will be required. It is possible that you decide this route is too costly.
What are the most common signs that a management company or property manager is having problems?
If you are concerned about your property management company falling behind, or not fulfilling their obligations, there are some warning signs.
There is a problem if property managers don’t get back to you or your tenants within one day. It is not your responsibility to contact the property manager for any updates. Property managers should reach out to you.
Property managers must be as responsive to tenants as possible. Tenants who need immediate repairs or assistance should be able receive it. If you start receiving calls from tenants directly, there’s a problem with the property manager’s work.
Check to see if inspections of property are being conducted as agreed. You may need these inspections before, during and after you move in. If inspections aren’t done, you could deal with colossal tenant or property issues without knowing.
How do I find a great company to manage my property?
Before you hire property managers, it is crucial to do your research. Check on their performance record before committing to their services, but don’t stop there. To make sure everything is working as it should, keep checking back.
These are some key questions you can ask while interviewing property managers to determine if they’re a good fit for your management needs:
- Which licenses, insurances and certifications do they have and to what code of ethics?
- How long have they been managing properties? Where were the properties located.
- Do they offer services for leasing, brokerage, and property management?
- How does their rent payment collection work?
- How does the owner payout system work?
- How often do financial reports get sent out?
- Are tax documents required by the company provided at year’s end?
- Do you use in-house contractors or outsourced vendors?
- What kind of vacancy rates does their managed property have?
- What fees are associated with these services?
- How does the management agreement operate and how does it automatically renew.
What are the top mistakes to avoid when looking for a property management firm?
As you are interviewing potential property management companies, you’ll likely be able to get a sense of whether or not a company is a good choice. Some red flags may be less obvious than others.
When working with a new company to manage your property, be aware of the following:
- Inexpensive appearance
- Unprofessional behavior or language
- Slow to respond to inquires or late for appointments
- Tenants will only be able to work regularly during business hours
- No proof of work or references
Notification of bad property managers is a necessary step
Bad property management companies can lead to poor business. The lack of a reliable point for contact with tenants, as well as a dedicated manager for you, will result in poor business. If you’ve identified a problem with your management company, take action immediately to minimize stress and costs.
Once you’ve removed a poor company, review the work they did in detail as you move forward:
- All tenant records should be reviewed
- Rent payments must be paid on time, properly tracked and kept current
- Check property inspections for any omissions
- Verify that vendor invoices are properly paid
This information will help you to set goals, expectations, tracking measures, and track your progress for future property management companies. Highly vetting your next company will be essential, but don’t assume all companies will fail you. The right company is out there—you just have to look.
