Why Owners Fire Property Managers: Top 7 Reasons
No, this is not a subject everyone wants to blog about. Nobody wants to get fired (or admit they have been fired). But it happens and we like to talk about the things that every other company is afraid to address.
So, let’s just get this out of the way first: We’ve been fired and we have received clients that have fired their previous property manager.
There are many reasons that owners fire property managers. In this post we will go over a few reasons why property managers get fired. If you find your relationship with your property manager has a lot of these qualities, it may be time to move on!
First, trust is important in any relationship. If there is no trust and trust works both ways, then normally we end up parting ways.
#2 Lack of Communication
Here are a few ways that a property manager shows lack of communication:
- Not answering phone calls or texts
- They don’t reply to your emails
- Owners are not getting their monthly statements
- Not getting their disbursements.
These are usually signs that a property manager is incompetent or trying to hide something. Those are reasons owners fire property managers.
If you are an investor, you know fees are an important piece of investment success. Don’t get fee’d to death! The minute a property manager fees someone to death, chances are the owners will start looking elsewhere.
#4 Failure to Follow Through
Of course, failure to follow through is a sure sign of incompetency. Asking a property manager to do something and them telling you “yes” they can, and then failing to do it! They have to follow through. A property manager has to have the systems in place to deal with the MANY requests, complaints and issues that are part of the business.
#5 Over Promise, Under Deliver
Often people experience this in the initial intake process. An owner calls in and the manager meets with them or talks to them and promises them rainbows and unicorns. But once the owner signs up with the company, they are met with empty pockets and voicemail. Here are a few items that are overpromised in the property management world:
- Over exaggerated rent prices
- Too low maintenance costs
- Unrealistic turnover and leasing timeline
At Access, we prefer to over deliver and under promise. We want to provide exceptional service, but can’t do that by underperforming.
#6 The Grass is Greener On The Other Side
I’ve had many owners tell me all about what the other property management companies do. If they would simply ask me, and I would challenge anybody “If you are going to leave me, where would you go?”. I can tell you a lot about many of the local property managers and they could tell you a lot about me as well. We all do things a little bit differently. We are all great at some things and not great at other things.
The grass isn’t always greener on the other side.
#7 Bad Tenants
To begin with, I always tell owners that I can’t screen for crazy and I can’t screen for stupid. Once we screen and place that tenant, we don’t know exactly how they are going to live. They could be spotless or they could live like pigs and pay their rent every month.
We also run into issues where owners are upset because we can’t collect on bad debts. Normally this happens when we don’t place the tenant. A different management company or a DIY’er places that tenant. That somebody most likely didn’t collect the correct information needed to collect on a person. If you want to collect on somebody these are items you have to have:
- Social security number
- Driver’s license
- Bank accounts
- Place of employment
- Pay stubs
Here are some other leasing mistakes we see made on a regular basis.
Why Owners Fire Property Managers
These are reasons I have seen why owners fire property managers. There are many more but these are the most common. Reach out if you have any other questions. We would love to answer them.