Help with real estate contract

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  #1  
Old 08-24-09, 02:16 PM
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Help with real estate contract

...or, lack thereof.

I own a rental condo, have had it for 3 years and it's always been rented. No down time on renters.

My previous property management company chose a "different career path" June 1, 2009. I had them for two years and they were great, so I was sad to see them go. Plus, my tenants moved out that month. So, for the first time, my rental has been sitting empty since June 30th.

I have been showing the condo myself, but I own two businesses and it's hard for me to show during my work hours. I've also advertised and interviewed new property management companies.

One property managment company consists of 3 young men (certified for prop. mngmnt here in CO) that were recommended to me through a friend.

I met with them, showed them the condo, they were positive, upbeat..."oh, yeah, we can get this rented asap", but in a soft rental market as it is now...that didn't happen.

Here's my question:

I've never signed a property managment agreement with them. I've asked them and they said "Oh, we'll do that when we get a renter in".

Supposedly (I say that only because I have met this potential renter or have been given her contact info), there is a lady that "wants to move in this weekend" and that they did her application, background check, reference checks and collected the full deposit for the condo and "all are great".

BUT, I haven't seen a thing. And, badly as I want a good, quality tenant, it's my property and

1) I need a signed property managment agreement between myself and this group

2) See her application for rent

3) see the results of her background checks

4) see her references, know that she has steady income

5) See the receipt of the $500 deposit.


I still have ads up on the condo, forwarded one response today to this prop. mngment group to contact and the owner of the prop. management gets back with me and says "I think we need to take down the ads now because she's moving in this weekend".




I told him just what I typed above in what I needed before she or anybody else moves into MY property.


Does all this sound strange to you? What should I be looking for? I have 3-4 property management companies that want to work with me asap......so, what if this owner drags his feet and doesn't produce the documents that I've asked to see?


THANK YOU! I know I probably posted this in the wrong area..if so, I apologize.
 
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  #2  
Old 08-24-09, 02:33 PM
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DO NOT let anyone move in....you have no contract of any sort...

If they have keys then you need to get a locksmith to change the locks. If you have an alarm..change the codes.

You are going to be soooooo scr#w#d if someone moves into your place w/o all the things you mentioned and a valid contract.

Go to one of the other companies and refer the person to them....if it works out wave any background fees..but not the deposit. Thats gone..and neither you or the renter will ever see it again.

Nice young men my A$$!
 
  #3  
Old 08-24-09, 04:43 PM
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Now that I've asked for the paperwork and agreement signed between myself and them (property management), they're saying that I'm "too demanding" and want to end our agreement---(that never was an agreement).

I almost doubt that they even had someone to move in this weekend and if they DID, why would they be "offended" for me to ask for copies of the paperwork? I didn't yell at them, cuss them out, I just told them that I needed that before this person (whom they never gave me her name, her info..etc) moved in.
 
  #4  
Old 08-25-09, 04:30 AM
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If it were me, I would jump for joy that they want to end the "agreement". There appears to be something very wrong with that outfit. Just be sure you have something in writing by either them or you, preferably both.
 
  #5  
Old 08-25-09, 06:56 AM
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I see red flags all over the place and I would run, not walk, the other way!
I've never heard of a company that doesn't want any contracts or paperwork of any kind. Very strange and I would not trust them.
They may very well have a lady that wants to rent your condo, but they would likely be the only ones that ever see any money. I'd rather have my condo empty temporarily.
 
  #6  
Old 08-25-09, 09:21 AM
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So true!. It hit me strangely before when I asked for a contract and he said "oh, we do that later", so red flags have been there. I guess since a "friend" referred them to me, I wanted to believe they'd get someone in.





I'm looking for a new property management company now. Is it the norm for them to ask for an upfront fee for $300 or more (non-refundable), $60-$200 per month to advertise and up to $500 for "Operating account" for maintenance?
 
  #7  
Old 08-25-09, 09:34 AM
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Wow...they want you to give them $1000 so they can make money off your property?

Didn't work that way for me back in VA...but since there was a large military community, maybe it WAS different circumstances.

I guess to see if its normal in your area is to contact more companies..if they are all pretty much in the same ballpark, I guess its normal.
 
  #8  
Old 08-25-09, 10:05 AM
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Yeah, I've gone to BBB, NARPM and contacted over 50 property management companies and every single one wants an upfront fee (that price varies from $150-$300), $60-$200 per month to advertise when empty and then 10% of monthly rent, plus 50% of first month's rent AND a $100-$500 account for maintenance emergencies.

But, I usually do the advertising myself and I do all the maintenance on the condo. My family is all in the electric, HVAC, plumbing, construction business, so they help fix those calls.

My appliances are all new in the condo, I have purchased service warranties on them all. So, if they need repair, I call the company to come out and fix.

I would do this all myself, but like I said, I own two businesses and am going back to night school, so I don't have the time to show the condo.


If I could find a property management company that does "partial management", to where they get the renters in, do the background checks (those are expensive. I joined a landlord site to where I could check people's backgrounds. They're up to $60 per person. So, if a couple wants to move in, it's $120.00 to do checks on them!!), do the application and collect rent monthly, then that would be good.
 
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