Property Manager Problem

Started by PauG • 6 replies • 1466 views

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PauG (Maryland)
Posts: 53

Posted:

Our community has had the same property manager for over twenty years. Within the past five years he has really slacked off. He has failed to uphold his end of the contract. For example he let the trashbins fall into disrepair and trees were growing inside them. He would not lift a finger to correct it. Our streetlights had broken glass, and he did not maintain them either.

This year it was a struggle to get him to do anything. Our board decided to hire a new property management company. We gave the old one a 30 day notice that we would not renew our contract with him. This is in accordance with his contract that we give him 30-days notice in writing before the contract expires on June 30. We faxed him the letter because he has a P.O. Box and would not give me a mailing address. Then a board member that did know it, dropped it off at his house.

He spoke to our president and said this is not going to fly. Whatever he means by that, I don't know. He then said to her to read article 6 in the contract and then hung up. Article 6 states the board has to give him 60 days notice of complaints and that he has 60 days to correct them. If he doesn't comply we can terminate. By the wording I take this to mean that anytime during the contracted year we can do this. But what we are doing now is we are simply not renewing his contract.

Some board members are worried he is not going to cooperate. Any advice?

MelissaP1 (Alabama)
Posts: 13,836

Posted:

This is splitting hairs here. Yes, he's right about the 60 day notice DURING his contractual agreement. I will give him that. However, that is DURING his contract. The 30 day notice is for 30 days BEFORE the end date of the contract. See the difference? It's NOT much I will grant you.
His contract ends on June 30th? If so, May 30th, a 30 day notice that your HOA is cancelling his contract should have been sent out. He has 30 days to work the rest of this contract. If he so chooses, he may submit another bid for the job. However, I am hoping that your HOA already has someone in mind and has proper time to get things together. It's cutting it close!
Sounds like this guy is grasping a straws to keep his job. Are you their only client? The 60 days is more in reference to his job performance than contractual length. He may have that confused.
I had a contractor issue where the former President gave his friend the contract in May about 3 years BEFORE I started. I fired that contractor/friend and hired a new one in April. The contract agreement originally had April as the contractual date. However, since the previous president started the other guy in May, I had to shell out BOTH payments to BOTH contractors for that month. It was proven that the former contractor had a "struck deal" starting a month later than the real contract stated. Caused a big mess! It was very difficult in giving the proper notice since I didn't know the mistake. I was lucky to get the original contract back on track to the right month after that.

Former HOA President

GloriaM (North Carolina)
Posts: 829

Posted:

The 60-day notice is during the course of the contract, should you have reason or cause to let him go. The 30days before the renewal you may cancel the contract with proper notice. He can't hang on when you want to let him go.

BradD2 (Florida)
Posts: 418

Posted:

I suggest you get ready to change the locks and send a letter to all the homeowners introducing the new property manager.

HaroldS1 (Arizona)
Posts: 314

Posted:

And if this guy was paying your taxes and receiving all your mail, be sure to have everything changed to prevent bills going astray and not getting paid timely. Our property tax bill continued going to the old MC, who never bothered to forward them until it was discovered just before a sheriffs auction of our common area.
Just an aside: I think giving him - or any MC - 60 days to comply with anything is dumb. Is that a usual clause in MC contracts? Harold

JM2 (Oregon)
Posts: 439

Posted:

Hi PauG:

Be sure that the "Agent of Record" on your state incorporation is changed by the new manager. Typically, that's the manager, however, some communities use their lawyer, some use one of the board members, typically the president if they do.

Contact all your vendors and let them know that you're changing managers, and give them an adequate timeline to provide bills either to the new manager or directly to the Board President. Check on taxes as well.

You have the right to not renew the contract at any renewal time.

JPM

PauG (Maryland)
Posts: 53

Posted:

I appreciate all the replies. Great advice.
Our HOA has found a new management company that has an excellent reputation. We met with them on May 30 and were impressed. They plan to send out a letter introducing themselves to the homeowners.

Gloria, you're right. The 30-days is notice not to renew the contract. The 60-days is to file a complaint with him and if he did not comply we could have fired him in the course of the year. This guy is lucky we kept him until the end of the contracted year.

We have a feeling he may try to give us grieve, but we have a lawyer.

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