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#284290 - 03/31/09 03:52 PM Ethics question regarding business solicitation?
ReoArsenal Member Registered: 01/30/08 Posts: 55 Loc: Los Angeles	Posted this in another forum before I realized this one may be more appropriate. Sorry for the double post but any responses would be apreciated. Basically I am an onsite manager but also have a real estate license and have several off-site management gigs. On the block that I live and manage, there is what looks like a very poorly managed 14 unit building, which I know I could handle much better. There has been a vacancy in one of the units for over 6 months now and I am having a hard time finding it advertised anywhere aside for some street flags and sign. Based on the sign it is managed by one of the larger companies here in Los Angeles. Is it wrong of me to write the owner a letter stating I could get the place rented and manage the property more efficiently since I live right next door. Is this violating an existing contract? In real estate sales you wouldnt approach an owner until a listing expires.
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#284430 - 04/01/09 09:10 AM Re: Ethics question regarding business solicitation? [Re: ReoArsenal]
Jim Erickson Veteran Member Registered: 03/31/04 Posts: 508 Loc: Twin Cities, MN	YES! Sales or Property Management involves contracts creating agent/principal relationships. I am not an attorney and I am not giving legal advice. _________________________ Twin Cities Real Estate Services
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#284431 - 04/01/09 09:20 AM Re: Ethics question regarding business solicitation? [Re: Jim Erickson]
Bigtoe Veteran Member Registered: 10/14/07 Posts: 1215 Loc: Outer Banks	Forget about ethics, read this. http://en.wikipedia.org/wiki/Tortious_interference _________________________ Your Outer Banks real estate agent. Learn how to buy an Outer Banks Foreclosure property.
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#284474 - 04/01/09 01:26 PM Re: Ethics question regarding business solicitation? [Re: Bigtoe]
ReoArsenal Member Registered: 01/30/08 Posts: 55 Loc: Los Angeles	I see. How would that apply to mass mailing then? If I send a mass mailing saying I live and manage a property very close by and send it to everyone in the neigborhood? I still technically know that some of the recipients are under contract. Is it the difference between not targeting one property and saying that they are doing a crappy job?
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#284495 - 04/01/09 03:53 PM Re: Ethics question regarding business solicitation? [Re: ReoArsenal]
Jim Erickson Veteran Member Registered: 03/31/04 Posts: 508 Loc: Twin Cities, MN	General mailings are ok. Contacting a specific property owner directly where there is an established principal/agent relationship is not ok. If you are not a broker you should talk to your broker.If you are a broker you should have a dialog with an attorney. _________________________ Twin Cities Real Estate Services
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#284498 - 04/01/09 04:21 PM Re: Ethics question regarding business solicitation? [Re: Jim Erickson]
ManFromTheBand Veteran Member Registered: 08/23/05 Posts: 704 Loc: Spring Hill, FL	you can't target specific homes that you know to be listed - you can target a street or a neighborhood. ultimately it's the intent that is important. are you looking to snake another agents listing? or farm an area? _________________________ Check Out my Blogs - Spring Hill Real Estate - Hernando County Real Estate and Spring Hill Real Estate Buyers & Sellers Q&A Forum Check out my Google Profile or connect with me on Facebook, LinkedIn, or Twitter!
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#284504 - 04/01/09 05:03 PM Re: Ethics question regarding business solicitation? [Re: ManFromTheBand]
Alan From Florida Veteran Member Registered: 05/10/05 Posts: 906 Loc: Tampa Bay Florida	Is it legal that is a question for the legal people Is it unethical HELL YEA. If you know it to be listed with a broker then you are both rude and unethical. MASS mailings are ok but in your case you are targeting a specific owner and then trying to discize it. _________________________ Alan Plager E-Pro Prudential Tropical Realty Over 2500 Units Sold Please click here to request my list of reo and or investment properties
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#284545 - 04/02/09 02:20 AM Re: Ethics question regarding business solicitation? [Re: Alan From Florida]
Paul Oaks Major Contributor Registered: 06/23/04 Posts: 3370 Loc: Central Illinois	Unethical? Not!!! This is a property management situation and not a listing contract. Those are two entirely different situations. Property management usually provides for performance by the mgr and are based on occupancy rates of the property in addition to other profit centers. If the mgmt company is doing little to advertise the vacancies in a property then they are not fulfilling their obligation to their clients. Often absentee landlords do not pay close enough track of the breakdown of their property. I also have a landscape business and using your logic I would neve be able to contact any potential customer currently being serviced by another contractor because it would be "unethical"! That is a load of bull and you know it. I have 3 out of state rental properties that are managed by others but I actually am an informed owner that watches my quarterly statement. If I were not I would be greatful to get a letter notifying me that my current mgr was not doing everything he could to keep my property occupied. The letter writer may not get my business but it will definately prompt a serious conversation with my property mgr and a review by my attorney to determine if he has breached his contract for management of my property. If he breached he is gone and if not he has till renewal to perform or the new guy will get his shot!
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#284546 - 04/02/09 02:32 AM Re: Ethics question regarding business solicitation? [Re: Alan From Florida]
ReoArsenal Member Registered: 01/30/08 Posts: 55 Loc: Los Angeles	I am asking regarding property management and not a real estate listing for sale. I dont know, but it seems different to me. I would never contact an owner of a home I know is for sale by another agent. However I am seeing this 14 unit property next door to where I live being managed "professionally" like a dump. There has been a vacancy for several months and I can not find any print or web rental advertisement for it. All they have is flags and signs. Exterior maintenance is also a bit sketchy. It doesnt seem unethical to me in this case, but maybe its just my underlying annoyance looking at the stupid flags every morning. BTW my broker told me to stay away so I suppose I am wrong on this one.
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#284547 - 04/02/09 02:38 AM Re: Ethics question regarding business solicitation? [Re: Paul Oaks]
ReoArsenal Member Registered: 01/30/08 Posts: 55 Loc: Los Angeles	Originally Posted By: Paul Oaks Unethical? Not!!! This is a property management situation and not a listing contract. Those are two entirely different situations. Property management usually provides for performance by the mgr and are based on occupancy rates of the property in addition to other profit centers. If the mgmt company is doing little to advertise the vacancies in a property then they are not fulfilling their obligation to their clients. Often absentee landlords do not pay close enough track of the breakdown of their property. I also have a landscape business and using your logic I would neve be able to contact any potential customer currently being serviced by another contractor because it would be "unethical"! That is a load of bull and you know it. I have 3 out of state rental properties that are managed by others but I actually am an informed owner that watches my quarterly statement. If I were not I would be greatful to get a letter notifying me that my current mgr was not doing everything he could to keep my property occupied. The letter writer may not get my business but it will definately prompt a serious conversation with my property mgr and a review by my attorney to determine if he has breached his contract for management of my property. If he breached he is gone and if not he has till renewal to perform or the new guy will get his shot! Thanks Paul. I just read your response after my own post. That is what I was thinking originally but my Broker who also happens to be my Father seems a bit uneasy about it. Maybe I will send a letter to the owner just as a neighbor notifying him about what is going on without the business solicitation.
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#284624 - 04/02/09 04:13 PM Re: Ethics question regarding business solicitation? [Re: ReoArsenal]
BillJames Member Registered: 03/30/09 Posts: 33 Loc: Albany,NY	I'd find out more about the owner, he might just be a slumlord and not care _________________________ Mortgage Acceleration Payoff Calculator-within 3.5 seconds it will reveal your savings for your specific situation How to Lower the Interest on your HELOC-so that you never pay more than 2.7% in HELOC interest
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#284884 - 04/04/09 12:38 AM Re: Ethics question regarding business solicitation? [Re: BillJames]
shana Major Contributor Registered: 11/06/07 Posts: 1520 Loc: Nevada	Can anyone point to a specific private association rule that would prohibit this kind of solicitation by its members? REOArsenal, are you a member of NAR? Does the NAR Code of Ethics address this? (not that I give a crap about NAR) I can't see that soliciting specific property owners for business would be unethical. however, I would be cautious about mentioning the current property manager and their alleged lack of performance.
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