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My First Property Management Experience

By
Real Estate Broker/Owner with Spotlight Realty

Well, the Tomato is hosting a Carnival of Scary Real Estate stories, and lord knows I can't deny everyone this one...

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It was a dark and stormy...morning. My third day on the job managing a one bedroom condo, also my very first property management gig. The owners moved out to Japan, and came to me asking about Property Management. I told them I'd never done it before, but it's just a one bedroom condo, how hard could it be?

I got the contract, and we set up the appropriate accounts. They left for Japan, and I found a nice young recently married couple to rent the place. So a small condo, in a professionally managed association, the place was rented, and I was on easy street.

So before the tenants moved in, I wanted to have the place professionally cleaned for them. So I called a friend and asked if he knew a good cleaning lady. I call her up and set up a time, 9:00 Saturday morning.

I get there that morning to let her in at 8:45, 9:00 rolls around, 9:15, 9:30... I call her up to see where she is, and it goes to voice mail. 9:45, voicemail. Finally 10:00 rolls around, and I get in touch with her. She had to move around some appointments and wasn't going to be able to make it. Now it's short notice for me to find someone else, so I ask her if she can do it tomorrow morning, she says yes 9:00am would work.

I get there Sunday morning again at 8:45 to let her in. She shows up at 9:45. It's her and her daughter, they have all their supplies... Awesome. I let them in and tell them to call me if they need anything.

Sure enough, I get a call from the daughter at 11:00. "Jon, I need you to come here, my mom cut her finger." I ask her "Is it bad? Should I call 911?" She says no, but she wants me to come over. So figure it's not pretty but it's not bad, I stop by the store and buy some cotton balls and hydrogen peroxide.

I show up at the property and the mother is sitting on the ground with some paper towels around her finger, and the daughter is standing with her back turned to her mom (she couldn't stand to look). I look around the room real quick, there isn't any blood splattered around, the paper towel is not soaked, how bad could it be?

So they ask me to look at it because neither of them can. And I lean over, and thinking is a small cut, I give her the "let me see this little cut" So I remove the paper towel.

I saw blood and bone. This wasn't a deep cut, THE WINDOW HAD FALLEN ON HER FINGER!! Think more like a fat guy taking down a chicken wing in one bite. The window had removed her nail and skin from the bone just under her nail bed.

The smirk dropped from my face and I freaked "WE ARE GOING TO THE HOSPITAL RIGHT NOW!" I ask which window, and they point me over (well the daughter did). So I lift the window, and underneath is the cleaning rag, and the fingertip and nail. I grab both, hand them to the daughter and hightail it for the nearest hospital. I made it in 5 minutes. During the drive, the cleaning lady told me I looked pale.... Yes, the fingertipless lady told me I looked pale.

After I got them to the hospital, I went back to the property and had the new tenants moving in within hours, and upon closer inspection, there were spots of blood all around the window and wall. I had to spend the next 3 hours on my hands an knees cleaning up the blood, and finishing the 1/2 done cleaning job.

Now if you think that's bad. On top of all of that, the cleaning lady didn't have workers comp, and the landlords owned the property outright and didn't have homeowners insurance. My first communication with them after they arrived in Japan was telling them the story and advising them that they will be needing legal representation.

I figure, in my first 3 days I had an experience that Property Managers doing it for 20 years have never seen. Wonderful.

As far as the carnival, if that one doesn't get me in the top ten, I can't wait to read the ones that beat it.

Craig Bartels
The Indy Realty Shop - Indianapolis, IN

oh my goodness,now that is horrible.

 

I will say I have about 80 units myself, my property manager manages mine as well as 30 othter units. . I will have to say I have never had an experience like that.  

 Goodness!  Why didn't they have homeowners insurance?

Oct 28, 2006 01:27 PM
Laura Monroe
Inman News - San Francisco, CA
Dir. of Industry Engagement & Social Media
Hey Jon That was good reading, very well written! Glad to see you back~
Oct 28, 2006 01:30 PM
Roberta Murphy
San Diego Previews Real Estate - Carlsbad, CA
Carlsbad Real Estate and Homes

Did the tipless finger get itself put back together again?

I am thinking of the headless horseman....

Oct 28, 2006 01:35 PM
Carole Cohen
Howard Hanna Cleveland City Office - Cleveland, OH
Realtor, ePRO

What a nightmare! Yes, what happened to the finger and what happened regarding the owners and the cleaning lady?

 

Oct 28, 2006 02:54 PM
Sharon Simms
Coastal Properties Group International - Christie's International - Saint Petersburg, FL
St. Petersburg FL - CRS CIPS CLHMS RSPS
Proves that no matter how simple the situation seems, you should only hire people who are licensed and whose liability insurance AND workman's comp policies you have seen and checked to be sure they are valid and still in force.  
Oct 29, 2006 09:44 PM
Rich Kruse
Gryphon USA, Ltd. - Columbus, OH

This week I am taking over management of about 60 units in a low income area.  I am sure there will be some stories.

Guns, knives, dogs, drugs, vandals, etc.  Why should today be different.

Ok - Here is one.  Last year, one of the tenants was calling every 2 days about having a security light replaced in the back yard.  It was dark back there and she didn't want anyone coming into the yard at night.  The rest of it was that she didn't want anyone coming into the yard to steal the marijuana she had growing back there.  2 things on this.  1. She had achain link fence, so the light made the illegal drugs MORE visible to people like me and the police.  2.  She was on the Section 8 program and the government was paying her rent, so by extension providing a free place for her to produce illegal drugs.

Oct 29, 2006 09:58 PM
Jon Ernest
Spotlight Realty - Brookline, MA

Craig - They didn't have it because no bank was requiring them to have it, and it was just an extra expense to them.  Lets just say they like to cut their expenses as much as possible.

Thank you Laura

Carole and Roberta - well it kind of got worse, because there was no insurance, the hospital we originally took her to, actually refused her assistance, and for some reason she didn't go to another (public) hospital to get it cleaned and looked at.  In those extra days, the wound managed to get infected. Then she informed us of all her additional costs that she couldn't pay while she wasn't working.  Her rent, her car payments, her daughters school supplies, her monthly cost of food, her utilities, her plasma tv that she was renting (in the bedroom), her 61 inch hdtv she was renting in the living room, her condo down in Brazil that has been under construction for 4 years that is still incomplete and uninhabited but she is still paying for.... there was more, but that's just what I can remember.

Sharon - you are ABSOLUTELY CORRECT.  My property management lessons learned:

- Landlords w/out homeowners, RUN

- Before taking a contract, check for ANY possible signs of neglect to the property 

- Only hire fully licensed and insured companies to do work, regardless of owners wishes.

- No matter how small of an injury, call 911 (even if you are first responder certified)

- Have an attorney on speed dial

 

I think my "favorite" part of this whole ordeal, was that right after this happened I called my Dad. My dad helps manage a steel manufacturing plant in the midwest.  I told him that a cleaning lady just lost a piece of her finger....

And quicker than I could blink he goes "A Finger? That's $7,800.00 " 

 

Oct 29, 2006 10:14 PM
Home Design
Alpharetta, GA
Home Design and Real Estate

Wow!  what a grim story!  Keep your head up and remember that this stuff doesn't happen everyday. Good Luck!

Oct 29, 2006 11:08 PM
Kerri Brencsons
Lift Interiors LLC - Scotch Plains, NJ
Oh my goodness. You poor thing! Youre probably rethinking this gig about now.
Oct 29, 2006 11:34 PM
Susan Trombley
Trombley Real Estate - Wake Forest, NC
Broker/Realtor, Raleigh, Cary, Wake Forest, Youngs
OH wow. I guess maybe that is why I really did not want property management as a career.
Oct 30, 2006 12:27 AM
Sonja Babic
Sonja Babic/PRIME Realty NC, LLC - New Bern, NC
New Bern NC, PRIME Realty NC, LLC
Thanks for reminding me why I don’t want to do management! Hope your carrier got better!
Oct 30, 2006 01:18 AM
Jon Ernest
Spotlight Realty - Brookline, MA
Me poor thing?  Out of the three parties involved, I think I walked away with the least damage.
Oct 30, 2006 01:22 AM
l kk
Fort Lauderdale, FL
Wow, that was crazy.
Oct 30, 2006 02:27 AM
Dave Rosenmarkle
Highland Realty, Inc - Fairfax, VA
33 years of providing fully satisfying service!

Jon

All good lessons learned. There were some good suggestions above. The trial by fire (cut in this instance) won't happen to you again.

They don't speak up much because they don't want the competition, but there are a lot agents out there who are managing multiple properties successfully.

While many others have been complaining about the diminished market in 2006, the agents managing properties are raising rents and taking home more consistent fees.

If inclined, I would urge you to take a property management class. See if it appeals to you before throwing in the towel over this condo. I have a friend that I have posted about before who only works with renters, apartment buildings and manages a fair number of properties. He made over $300,000 in 2005. Not too shabby! 

Oct 30, 2006 03:27 AM
Craig Bartels
The Indy Realty Shop - Indianapolis, IN

Dave,

 

How many properties was he managing to make 300k?  Wow, that is most impressive?    What kind of rents does he receive on these he manages?  In Indianapolis, we get about 10% of gross rents received for our services, it would take quite a lot of apartments to pull down 300k here:)

 

Oct 30, 2006 10:16 AM
Lynsey Russell
Century 21 Elite - Lakewood, CA
I have a client that might need property managment services. I have no expertise in this area but I do not want to pass it up any suggestions? What is the going fee/commission? I do not want a finger episode!
May 16, 2007 09:32 AM