- July 8, 2020
Better Business Bureau (BBB) has been a go-to business referral platform for consumers looking for companies with excellent ratings. However, BBB has fallen short of transparency and integrity by going against recommendable business ethics. There have been several companies reporting extortion and blackmail by the business grading platform with the promise of getting an A+ rating. The truth is that the companies that conspire with BBB in a pay-and-play are openly known to be the exact opposite of the excellent grades provided on the website. Reputable companies like Microsoft and Starbucks, which are known to be scaling the globe, never get higher ratings, despite having no complaints at all.
It’s surprising to search for a firm like Time Warner Cable, which is trailed with complaints from consumers, and see an A+ rating. A report by CNN Money that investigated the BBB revealed some disturbing “behind-the-scenes” dealings. The enterprise grader highly rated HCR ManorCare, a nursing home with many branches across the country, yet the federal investigators established that HCR ManorCare subjected their elderly residents to unnecessary medical procedures only to bill them more.
What do these companies have in common?
- A bank charged with preying on senior citizens
- A mortgage agent accused of discriminating against minority applicants
- A medical research company reported to be paying peanuts to the doctor
All these companies vaunt having an A+ grade on BBB.
In another news article published in Time on March 19, 2013, reported that the Better Business Bureau had suspended one of its LA subsidiaries in Southland for allegedly extorting local businesses and forcefully compelling them to pay in exchange for a better rating and to “look the other way.”
Select a Property Manager with a Low Rating on BBB
Better Business Bureau’s unscrupulous dealings with mortgage agents show the gradual encroachment of the ill practice into the real estate industry, and property management companies are the latest victims.
Cases have been reported of BBB blackmailing property managers out of their Fiduciary Duties and Responsibilities to landlords. What the Better Business Bureau fails to understand is that a property manager’s contract with a real estate investor is a fiduciary agreement. That means that the housing agent must express the highest level of loyalty and maintain an ethical and contractual demeanor to operate in the landlord’s best interest. The fact that BBB is not perturbed by forcing a management company to ask property owners to write positive reviews on BBB is an unethical practice. The housing agent commits a breach of law by doing so.
Another fact that BBB seems to forget is that the property manager’s primary responsibility is simple: to manage the property on behalf of the landlord. Their role is to conduct property inspections and schedule maintenance projects to ensure housing units are fit for occupancy. Therefore, they’re obliged to meet the wishes, wants, and expectations of the real estate investor. If a client wishes to approve and sign maintenance budgets, then the property manager needs to comply. One value of hiring a property manager is that they provide a buffer between landlords and tenants. They are responsible for scrutinizing tenants, enforcing lease agreements, and ensuring shorter vacancy cycles.
Interpreting Good and Bad Property Management Reviews
Landlords invest in real estate to receive the maximum returns of their investments. Most of them look for agents who will act in their financial interest. That said, complaints from renters, such as a residential manager withholding a fraction of the deposit amount, may show that the manager is actually acting in the property owner’s best interest.
Furthermore, a tenant may lament that their house agent increases the rent without proper adherence to protocol. That may help people searching for a rental apartment to be wary of such a property manager, but, on the contrary, it shows a real estate investor that the agent has a strong assertiveness to get high market rates of the property for higher revenues.
Red Flags for Bad Property Management
As an investor, there are some specific things you should look at when reading the reviews and testimonials about a property manager. For example, take note if landlords complain that a particular property management company consistently delays reports, lacks proper communication channels, or conducts late repairs without putting tenants on notice. Such reviews should be a red flag that the property management company in question is unprofessional and not the right match for you.
Make the Right Move and Switch to a Reputable Property Management with Ratings from a Credible Company
Being a landlord should never be a headache and a hassle. If you are still dealing with high vacancy rates, poor communication, limited services, late payment, high eviction rate, among other problems associated with bad property management, it’s time to move on to a better option. You might have had a bad experience with your property owner, but that doesn’t mean all property owners are as bad. There are plenty of companies out there with experience, knowledge, and are fully committed to delivering on their promises. What’s more, there are credible firms such as Property Management Quotes.com that ready to help you find a property management company worth your partnership.
If you are looking for a trusted website where you can find professional property management services, please check out PropertyManagementQuotes.com. We have a large pool of reputable managers, and you can find them at no cost at all.