Why Property Managers Fire Owners: The Down and Dirty
Last week we discussed Why Owners Fire Property Managers. This week you see the other side of the story. This is kind of a touchy subject. Not a whole lot of companies would put this video out there.
We will give it a go because we like to talk about things that others don’t.
Sometimes owners feel that when they switch property managers it’s their decision, but that’s not always the case. We don’t look for owners to fire, but it does happen. This post is about why property managers fire owners. Here are some of those reasons.
The first reason property managers get fired is due to crazy high expectations. It’s the number one reason because it can really encompass a lot of items. A few of the things that come to mind are:
Unrealistic Rental Rate
I have some owners that say, “Hey my mortgage is this amount, I need my rental rate to be this other amount”. Rental rate is what the market bears and not based on your mortgage payment. It is something to keep in mind when you buy the property. Make sure you can make money based on rental rate. Rental rates do go up and down.
Unnecessary, Frequent Home Visits
Some owners want me to stop by their property every week. I just can’t do it. We have over 600 tenants and over 340 units. I can’t hit your property once a week. To be honest and upfront about it; such frequent visits are unnecessary and an invasion to the tenant living there.
Unrealistic Landscaping Expectations
This may seen unreal, but I have owners come to me and ask “Why hasn’t the tenant put down $500 in new bark around the house.” or “Why hasn’t the tenant trimmed the trees?” Things like that are not the tenants responsibility. A tenant’s not going to landscape your entire property.
We do not have a problem getting quotes for people. BUT don’t ask me for three quotes for a $60 job. I don’t have time to do that. Our vendors don’t have time to do that. We manage A LOT of maintenance work, so we know how much routine items cost. You can learn more about our maintenance on our services page here.
Continuously Asking for Discounts
Another reason that owners get fired is if they constantly ask for discounts. I have owners that will call me every year and want to lower their management fees. My response to that is if your boss came to you two years in a row and asked you for a pay cut, would you still be working there? Most people would say No. They’d say no after the first year. Thats the reason we sign a contract. We charge what we feel is a very fair price for the work that we do. You get what you pay for. We don’t discount. Some companies do. May be they feel they are worth less and that’s the reflection of the service you will get.
Not Reading Your Monthly Statement
This seems like a simple one. We send out monthly statements. This ensures that you are always in the loop with your rental properties. We get emails occasionally from owners that never want to look at their monthly statements, but always ask every question that can be answered just by that statement. We simply ask that you take two minutes to look it over. It will explain and answer 95% of your questions. We are always here to answer questions or if you need help reading the statement.
To see an example of our monthly statement, download a copy of our Owner Handbook.
Not Putting Money Into Your Property
This is a reason property managers fire owners. If you don’t put any money in your property and you take all the returns, the property gets worn down, dilapidated. The tenants will complain and then we can’t fill the property. It makes us look bad and the owner look bad. And now I look bad because I can’t fix up a property to make it habitable. So you have to put money into your property.
Treating Your Property Manager as an Employee
This is an important one. We are not your employee but your business partner. We make money when you make money. If your home is vacant: you aren’t making money and I’m not making any money. We both want to succeed and we work as partners to do that. We are flexible, but we have many processes in our system and software that won’t allow us to do one off’s. As property managers, we repeat many of our processes daily, weekly, or monthly, so if we are asked to change a process for one person, we have found it isn’t viable. In the past we have tried to personalize some processes, but we have found that these items are forgotten, performed incorrectly or inefficiently. So, we ask you to treat us as your business partner because that’s how we view you in our book.
Why Property Managers Fire Owners
These are reasons why property managers fire owners. Every property manager does it. Just not every one will be honest and direct with you.