Careful screening of management suggested for egregious property

Q. Our 96-unit property is 85 percent to 90 percent rentals. Some of these renters are not properly screened and show no regard for community rules.

Our property manager of eight months has said that she has never seen a property with as much damage or with so many children roaming around unsupervised. Some tenants are seen loitering in doorways, drinking, and going from unit to unit at all hours.

Dozens of pit bulls have been brought in by tenants, even though dogs weighing more than 20 pounds are not allowed. These dogs are not leashed, and the owners do not remove their waste.

We recently hired security for the property and are sending out letters of violation and following up with fines. We plan to hold a meeting with the police department and the security people to form one or two sweeps on the property each month.

Our property manager needs to do the two walk-throughs as stated in our management agreement. Most of our board members are getting the feeling that she may bail out on us.

What steps can our board take to find a strong, competent property management company that is willing to take on an egregious property such as ours? Can this property be saved?

A. Before contacting any management company, your board needs to discuss what functions you want the management company to perform.

You have some special needs. For example, you want a manager to walk the property twice a month. In addition, the manager may be required to attend additional monthly meetings, such as those pertaining to security issues. The company may also be involved with more legal issues in dealing with owners and renters.

Your management company must understand that more time will be required to help stabilize your community. For example, the company should place more pressure on unit owners to control their renters and to evict those who are causing continuous problems. Your management company should also inform all renters and owners of this by mailing copies of your rules and regulations to them. You may want to send reminder flyers throughout the year when there are problems that need their cooperation.

The homeowners need to define what characteristics make a strong manager. Once you have written a list of requirements, contact some management companies. You can call the local chapter of the Institute of Real Estate Management and the Community Associations Institute for a list. Your board also may call other associations to obtain recommendations, the Better Business Bureau and the ombudsman's office of the Nevada Real Estate Division.

Before accepting any proposals, ask the management companies to inspect the property and to meet with your board to discuss any special needs. This way, the companies will have complete knowledge of your property which they will need when submitting written proposals.

The proposals should include a base management fee with extra costs stated as part of a "menu system," where the company would receive additional payment when work that is not part of the normal monthly functions is performed.

Your property can be saved. There are a number of management companies that specialize in problem properties. It is amazing what can be accomplished with commitment, expertise, support and teamwork between a board and management company.

Once the residents begin to see changes in attitudes and in the property, you will find residents, both owners and renters, in support of those changes.

Questions for Barbara Holland may be sent to Association Q. & A., P.O. Box 7440, Las Vegas, NV 89125. Her fax number is 385-3759.

Barbara Holland, Certified Property Manager, is president and co-owner of H&L Realty and Management Co. She is a member of the Institute of Real Estate Management and is the author of two books on the subject. Holland is a past president of the Greater Las Vegas Association of Realtors.

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