PropertyManagementMaven: In Lease Negotiations, advising all of the parties may not be ethical......

In Lease Negotiations, advising all of the parties may not be ethical......

This is a tough one and I have talked to other property managers as to how they handle similar situations and they handle these instances differently.

Prospect applicant #1 submits an application and arranges a viewing 3 days later.  She is driving 3 hours to view the property. I offer to bring a lease for her if she gives me her move-in date and she can give me a check for the move-in monies if she wants the home.....we meet, she has no move-in date, no check and there is no lease signed....later, after deciding on a move-in date, she continues to e-mail and call wanting the lease.  I repeatedly advise her I require a check for her move-in monies BEFORE I prepare the lease.  I give her until noon on Tuesday to FedEx move-in monies.....

MEANWHILE, a second prospect applicant couple #2 views the property online, submits an application, gives me a move-in date that is a week sooner that #1, FedExs (#11 Denny Hamlin Toyota) me their move in monies and I send out a lease packet.  I receive their faxed lease signature page and consider the property leased.

#1 e-mails that she has sent the money; however, it is not received by the deadline.  #2 gets the home.  I have already put their monies in the bank and will remove sign and lockbox this afternoon.

I did not tell #1 or #2 of each others' interest in the property or that I was holding it for them.  I did not ACTIVELY advertise the property by posting on Craigslist; however, the property remained on my website and ACTIVE in our MLS.

It is MY POSITION that the FIRST applicants to followed my procedures and who wanted the property for the MAXIMUM benefit of my client property owner is the ultimate resident.

What say you?

 Wallace S. Gibson, CPM * GIBSON MANAGEMENT GROUP, Ltd.

LandlordWhisperer

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Comment balloon 5 commentsWallace S. Gibson, CPM • October 06 2009 12:24PM

Comments

Great post, Wallace!  You handled it right.  First-come is the first-served.  Property managers work in the best interest of the Landlord/Owner, so you did right to sign the first qualified tenant to meet the rental and leasing requirements.  I tell tenant prospects all the time that we work on a first-come basis, and they understand.

Posted by Eric Boyd, FL Licensed Real Estate Broker / Property Manager (Step One Realty, LLC, 904-469-6335) about 9 years ago

Eric * I e-mailed #1 that the property had been rented and she called me numerous times last night until I turned my cel phone off. 

My process is on my web site and I never told her the home was hers....

Posted by Wallace S. Gibson, CPM, LandlordWhisperer (Gibson Management Group, Ltd.) about 9 years ago

I am in agreement with you Wallace - you handled it very professionally.  I am learning very much from you and appreciate you giving us these types of details that work to save us from mistakes or unnecessary altercations.  Thank you

Posted by Diane Rice, SFR, SRES, CNC ( Rice Prprty Mgmnt & Rlty, LLC, South Holland, IL) about 9 years ago

Hey, You gave #1 every oportunity to get it together. Afeer awhile you have to move on. i think yo did the right thing. u

We are in the process of renting a home rightnow, and if # 1 does not get it together with signing of the lease,and checks ready to go. We must move on too.

Posted by Sandy and Jay Souilliard (Keller Williams Realty) about 9 years ago

Sandy & Jay * I LEARNED that I should not discuss the "potential" of #2 with #1 * that would not benefit my client/property owner so I have stopped that interchange* HOWEVER I am STRESSING the old "time is of the essence" and I continue to show the property on my website; however, I don't post it to CL in my regular DAILY rotation...

Posted by Wallace S. Gibson, CPM, LandlordWhisperer (Gibson Management Group, Ltd.) about 9 years ago

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