Property Management Company will not pay me out now that I switch

[Jeff Betschart]

Wondering what action I can take against a PM company that has not paid me my last month's rent on 8 properties and all deposits that they have for my properties. Is there a time limit before I can press action against them? Not sure what the next steps are but I sure hope no one ever chooses to use them if this is how they treat people who have been with them for 4 years. 

[Bjorn Ahlblad]

Most PM's have to have a RE license. You can report them to the RE board in your state their license would be in jeopardy. Don't wait too long. Get a lawyer and take them to court. Good luck!

[Richard F.]

Aloha,

What does your management agreement say about termination of the contract, and automatic renewal? Did you give them written notice, in accordance with the contract?

Deposits are a separate issue, they belong to the tenants, and must be transferred to you or returned to the tenants. Do you have documentation of what the current deposits are that they are holding, or are you just assuming they have deposits?

If you do not have appropriate documentation, it will be very difficult to succeed in recovering the funds.

[Joe Norman]

If your PM is licensed in their state then start by going to their regulatory board (e.g., The Colorado Real Estate Commission) to file a complaint. If you hired an unlicensed PM then good luck ever getting that money back.

[Nathan Gesner]

Quote from @Jeff Betschart:

Wondering what action I can take against a PM company that has not paid me my last month's rent on 8 properties and all deposits that they have for my properties. Is there a time limit before I can press action against them? Not sure what the next steps are but I sure hope no one ever chooses to use them if this is how they treat people who have been with them for 4 years. 

You should have a written agreement that stipulates when you'll get paid, how you'll terminate management, etc. If they're violating that agreement, you can file a complaint with the Missouri Real Estate Commission: https://pr.mo.gov/realestate-h...

[Jeff Betschart]

I have documentation of everything. I have a copy that shows the deposit amounts for each property. I gave written notice and know the rents for October have not been received either. 

[Richard F.]

If you are saying the PM did not receive October rents for all of the tenants, I would knock on doors asap to meet with the tenants to confirm whether or not they did, or tried to, pay. It may be the PM's ship is sinking, and they have stopped ops. Provide tenants with written notice of change in management and your full contact info. Let them know they may lose their deposit if PM does not turn them over at some point. Once you have the full picture, contact your local Real Estate Commission.

[Melanie Thomas]

I would recommend you take a look at your PMA to ensure this is not already spelled out. Lots of questions here. Did you have any unpaid maintenance bills, attorney bills, termination fees that is eating into your draw? Have you requested final accounting and hired a new PM or self managing? Good luck, happy investing!

[Caleb Brown]

Could you PM what management company? Always like to know which ones have negative feedback 

[Drew Sygit]

@Jeff Betschart what's their response when you contact them?

Knowing their response will help us give you better advice:)

[Jeff Betschart]

No this is the PM not paying me after I told them I was switching companies. They are doing everything they can to drag their feet. They have received all the money from tenants, there is no back due fees,no legal issues they are just a crappy company. If you want specifics message me but until I get my money I will not be throwing out any names.

[Amanda Lizana]

I’m so sorry you are going through this! I’ll go over there myself for you!

[Bob Stevens]

Quote from @Jeff Betschart:

Wondering what action I can take against a PM company that has not paid me my last month's rent on 8 properties and all deposits that they have for my properties. Is there a time limit before I can press action against them? Not sure what the next steps are but I sure hope no one ever chooses to use them if this is how they treat people who have been with them for 4 years. 

How long has it been ? Do you have any invoices that need to be paid , maybe they are reconciling. What did they say when you called them ?  

[Matt K.]

I would love to know who it is... 

i has a stupid issue with a company no near this bad, but it was frustrating. I'd be talking to an attorney ASAP for a demand letter at this level...