Lawyer recommendation to sue property management company

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Nathan GesnerBusiness Member
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Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
4y

Before suing, consider filing a complaint with the state board of REALTORS or whatever governing body oversees property managers. One phone call may be enough to motivate your PM to negotiate some sort of settlement just to avoid an investigation.

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  • Sean RooksPro Member
    Rental Property Investor · High Point, NC · Member since 2017 · 272 posts · 304 votes
    4y

    Caplan Law Group and Shaheen Law Firm both have litigation attorneys on staff that could help. 

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  • Maya Torres
    OP
    Rental Property Investor · Norfolk, VA · Member since 2017 · 142 posts · 76 votes
    4y

    Thank you! I was thinking Shaheen as well. 

    Maya 

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  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    4y

    Before suing, consider filing a complaint with the state board of REALTORS or whatever governing body oversees property managers. One phone call may be enough to motivate your PM to negotiate some sort of settlement just to avoid an investigation.

    The DIY Landlord Book4.7247 Reviews
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  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    4y

    @Maya Torres

    I have an attorney as well if you want to send me a message.

    One thing to double check is your PM agreement. Some of them are crazy. I had a company who would not be held responsible even if they knowingly broke the law. It had to be “gross negligence”. Of course I refused to sign but this is one area investors really need to read in these contracts.

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  • Natalie Schanne
    Real Estate Agent · Princeton, NJ · Member since 2016 · 1k+ posts · 1k+ votes
    4y

    @Maya Torres - i would pull out my property management agreement and read what I had signed. If I signed something like “PM may spend up to $500 without my permission” and PM may charge these fees (1/2 months rent renewal) etc. Then I would believe that until the contract was terminated that I would be obligated to the fees I agreed to and that I would expect the pm to take proper and reasonable care of my property as per their agreement. (Some contracts say they charge $100-200 to “check in” on your property if they have to go more than once a year during the lease renewal (which generated a separate fee).

    I was discussing helping someone sell their property which was under contract with a PM. When I read their contract, it said if they wanted to sell, they agreed to list it with the PM brokerage and pay the PM 6% (3/3 split) for that listing. When I pointed out this clause in the contract, the person I was talking to ended up using the PM they claimed they didn’t like to sell their property instead of terminating the contract (which on paper auto renewed on a yearly basis for another year) and using me.

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  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
    4y

    @Sean Rooks Unfortunately, we've had a LOT of investors come to us after being screwed by their previous PMC:(

    The challenge is, most attorneys are going to want a $5k+ retainer fee to start a lawsuit.

    So, the price to recover a few hundred, or even a few thousand dollars, can get pretty steep.

    Also, check your PMC contract as many now have arbitration requirements.

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  • Maya Torres
    OP
    Rental Property Investor · Norfolk, VA · Member since 2017 · 142 posts · 76 votes
    4y

    Thanks everyone for your input. In a nutshell, my PMC placed a tenant that has not paid rent since November. Rent relief was filed on behalf of the tenant in December and we’ve been following up with our PM who’s been telling us that they’re just slow to approve applications. We finally decided to follow up with rent relief on our own and were told that the application was approved and the only thing they’re waiting on is for the tenant to fix a discrepancy with dates on her end before they disperse rent relief. They ended up telling us that nobody has been in contact with them for an update since January. I have an email from my PM saying she spoke to them in April and they reassured her everything was good on their end and we just needed to wait. We told our PM about the discrepancy and she switched her story up to say that she knew about it but hasn’t been able to get in contact with the tenant to let her know. The tenant who btw, her contract ended on 5/31 and is still living in our property. Our PM failed to tell us she didn’t move out until I asked her for an update 2 weeks later. Only reason I waited 2 weeks is because PM said it would take 2 weeks to schedule move out inspections and such. PM company just now filed a motion for eviction. And she’s been living rent free for 8 months and we have no rent relief. At this point, I want to fire the PMC and sue but not really sure how to move forward with a pending court date. (I would prefer not to sue and spend so much money but I do want them to be held accountable). Suggestions?

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