Real Property Management Twin Cities RPM, Real Property Management Company Billed $920 for services never rendered. Edina, Minnesota
On 9-27-11, I signed a contract with Real Property Management Services, allowing them to rent out and manage my home. According to the contract I signed, RPM's services were to begin on Nov. 15, 2011. I paid RPM $250 to advertise and market my property, and was told that this was the only fee I would be charged until they placed a suitable tenant in my home. After placing the tenant, their property management fee would be 10% of the monthly rent.
On Oct. 10, 2011, RPM showed my home to a potential tenant. This tenant informed RPM that he wished to rent my home, and he filled out the necessary paperwork for background checks, verification of income, etc. On Sat, Oct. 15th, the potential tenant knocked on my front door, and when no one answered (my daughter was home alone at the time), he left a letter in my door stating that he would pay me $5000 if I would bypass both RPM and my real estate agent (the home was still for sale as well), rent the house to him on my own, until his divorce went through, then sell the house to him in 9 months for $75,000 less than I was asking. The letter stated that I had until noon on Monday to give him an answer (essentially 48 hrs). The letter and this man's conduct made me very uncomfortable, so I simply did not respond to him.
About a week later, I forwarded a copy of the letter to Ron Huckabee, the owner of RPM, since I decided that this potential tenant had acted in a unethical manner, and I did not feel comfortable renting my home to him. Ron, the owner, called me and told me that this potential tenant wanted to rent my home, that he had passed the background checks and income verification, and that I had no choice but to rent my home to him. When I declined, stating that this man's actions made me very uncomfortable, Ron stated that I had no choice since the potential tenant had passed all of RPM's criteria. He then threatened to sue me if I refused to leave my house by November 15, and allow this man to move in, since I had "signed the contract." He spoke to me in a very condescending and unprofessional manner. When I indicated to Ron that I was not at all comfortable with this situation, and wished to terminate my contract, he informed me that the contract stipulates an early termination fee of 3 months of management fees, which in my case is $920. On October 25, 2011, I sent Ron an email, officially terminating my contract with RPM, and the next day, I received a bill in the mail from RPM for $920 for "early termination".
Since RPM's management services were not to begin until November 15th, I do not feel there was an early termination. RPM also never placed a tenant in my home, so there were never any services rendered to "terminate early". In addition, I am appalled by the manner in which I was spoken to by Ron, the owner of RPM. I am a very well-educated professional, and am not used to being addressed in such a disrespectful manner.
1 Updates & Rebuttals
Real Property Management-Twin Citie
Edina,Minnesota,
United States of America
HONESTY IS THE BEST POLICY
#2REBUTTAL Owner of company
Thu, November 10, 2011
In response to the complaint by Diana Danilenko Real property management was hired to market, rent and manage the property. The management agreement on file states Oct 18th signed and sent by Diana. On the management agreement she indicated a move in date of Nov 15.
Sent the leasing manager to the property and setup the property to be marketed with pictures and sent the information to all the websites. We marketed the property on over 250+ websites.
Our leasing agents showed the property.
A potential tenant filled out and application to rent. We did full background checks on this individual as promised. This person did have an interest in purchase but the owner said no and we focused on the rental part. I have personally spent several hours negotiating with Diana and this potential tenant.
A real estate agent contacted Diana and had a potential tenant that wanted to rent her property also. I believe this agent went around me and worked with Diana directly and potential broke real estate laws. I will be checking into this in the future.
By state law when dealing with applications you must look at the first applicant and accept or decline then go to the next application. Based on my companies requirements to approve the first applicant checked out with flying colors. I did not see the letter he left but he said he put a letter on her door step to see if he could purchase I have not seen this letter.
Regardless Diana did not want him to rent and I wanted to make sure she would not breaking fair housing law by discriminating or that it might look that way since he passed our background checks. I had her send me a letter stating her reasons so I could have it on file. In negotiations with him she decided that Nov 15 was incontinent for her to move out so she said he could not move in till Dec. 1. The property was advertised as requested for a move in of Nov. 15. Once she sent the letter on why she did not want him to move in she sent another email that said she will be cancelling the management agreement per her attorneys recommendation. I did call the first applicant back and said the owner has terminated our contract and that she did not wish to lease to him. I did refund his application fees as a courtesy to him.
The second potential applicant was from a real estate agent and I suggested they fill out the applications so we can do a background check to see if the qualify. The agent said they did not want to have me do a credit check and I stated I must protect my client (Diana) and do a full background check as I do with each applicant. The agent did not like this but I recommended to Diana this was prudent in understanding the situation of this potential tenant to protect her interests.
I have staff to assist in the leasing of my properties but in this case wanted to make sure we handled Diana's property with upmost attention so I was personally involved to negotiate and assist in these matters. I was in no way unprofessional and will defend this position to the utmost. It is very important to follow Federal, state and local laws and help my clients know them so they can make appropriate decisions. It may be inconvenient at times to live by the laws but in the end it will help everyone.
In this case from the start Diana asked to reduce my management fee and I did so by 30 percent and have never given such a big concession but wanted to make her happy.
The same page she signed the management agreement it clearly states section 15 under terms the cancelation policy.
The owner can cancel for any reason but are responsible for a 3 month management fee if they wish to cancel. I will be asking for this as agreed by all parties and for work we have done. The only monies collected have been the marketing fee of $250.00.
If any supporting paperwork is need I will be happy to send it over.
Thank you,
Ron