Owners please read before selecting Morgan Properties! The Good, Bad, and Ugly.
Please note that I keep this house is great shape. I have always kept it in the condition where I and my family would move back in tomorrow.
Morgan Properties has been managing my home in Muncie for 6 years. I live out of state. Morgan Properties had to evict 80% of my Tenants. I have been pleading for Morgan Properties over the last six tenants to do a basic credit check with a company like Experian. They have always refused. They state they are unable to pull credit because of the Fair Housing Laws. They testify if they run credit for my house they would have to do it for all the properties they manage. This is not true. They could easily change their business model. In simple terms they could put on their website that some home owner requires a credit check. With a simple credit check, Owners could qualify risk and require a two months deposit if necessary.
In my humble opinion, they do not run credit checks because it is easier for them to get tenants. If nobody is renting they do not make commission. The “background check” that is done by Morgan Properties falls short to protect the owner’s property. Please consider this before choosing this management company.
Morgan Properties will also will not let you out of the contract. After the last eviction I had to buy them out of 10 months remaining on the contract. They were unable to see my point of view on how they are costing me money. I could not let them put another tenant in the property with their past performance on evictions. It would have cost me more, with one additional eviction.
As an owner, I understand that a management company cannot guarantee a tenant will pay their rent. Even someone with great credit can be evicted for failure to pay the rent. But when the eviction rate is above 50% something needs to be addressed with the screening process. Their standard deposit is only one month’s rent without a credit check. If you decide to go with Morgan Properties, I suggest you have them raise the deposit to two times rent. This will minimize your risk. I was never informed of this option until I sent them my letter to end the contract.
A couple of things to point out just from the last tenant:
1.We paid to have their contractors do some maintenance work. They replaced the sink 2 years ago in the kitchen. I found out after having one of my contractors go through the property that the sink was never bolted down.
2.The last tenant in the home was allowed to have one small lap dog. Morgan Properties sent me a picture. I just found out from the neighbor shortly after moving in they got a second dog that was a large breed. I had to replace the carpet after the last tenant because the dogs tore holes in every room. I do not believe in the 6 years they were managing my property that they ever stopped by just to check on my property. The only time I ever recall them checking on the property was during an eviction.
3.The last tenant stole the washer and Dryer. Morgan Properties called me to report it. I had to ask Morgan Properties to call the police department and file a report. I would have expected them to do this without me having to ask. I would need the report to file the loss on my taxes.
On the Flip side. Morgan did an excellent job collecting payments and evicting tenants shortly after they defaulted on the payment. The Staff is very nice and they respond quickly. They do provide routine service like AC Services and lawn care if you care to have that done. They also will pay the mortgage if you have one. They will provide quotes to have your house repaired after they do an eviction. I have found that after an eviction it is much cheaper to sub contract the work out then use Morgan’s Services for large jobs. If you have a single issue called in by the tenant they do a good job.
About Morgan properties: They need to change their procedure when finding a tenant. For my property they seem to always go the easy route. Again, I will point out, that they had to evict 80% of my tenants in 6 years. The background check on tenants that are done by Morgan Properties falls short. They need to provide credit checks from a company like Experian. This provides better service and protection for the owners.
Final Thought… When choosing a Management Company to start a business relationship, make sure you both are looking out for the best interest of the property. As the owner, you are giving up your asset. The Management Company has no risk in your investment. When a tenant gets evicted, it is the home owner’s responsibility to cover the cost of all the repairs. If your management company has to evict 50% or more of the tenants, you are losing the most money. The number one priority of the management company should be to put someone in the house that has the means to pay the rent. I strongly suggest that you find a company that does Credit Checks. When a credit check is done they can set the deposit as needed based on risk. I was able to find a company in the Muncie area that does do Credit Checks and background checks. They compile all the information on the credit and send it to me. Then I decide what the deposit will be based off the RISK of the credit report. Do some research and choose a company that is looking out for your investment.
I will also be creating a web-page / discussion board for owners. This website will be broken down by management companies surrounding the Indianapolis area. Owners will be able to go to the site and write reviews, provide feedback, and how often their management company is doing evictions. As owners we need to have a place for collaboration for this area. Look for it soon or message me for an update.
Product or Service Mentioned: Morgan Properties Property Manager.
Reason of review: Not looking out for my Asset.
Monetary Loss: $7200.
Preferred solution: Let the company propose a solution.
I liked: Collecting payments, Collecting payments staff is very nice and they respond quickly.
I didn't like: Business model.