My Former Property Manager STOLE My and Tenant's Money!
My former property manager, Davis Property Management South (managers and owners of the property management company are Sam Davis and Eddie Davis (his brother) whom I found here on BP) stole my money and my tenant's money and refuse to return. Here is what happened (sorry for a long post).
I found Sam through BP recommended by Curt Smith to engage him for a rehab work on one of my properties (this post, ). (@Curt Smith , I could not find Curt's original post titled "two ATL contractors I really liked". Was that post deleted?)
Anyway, after they finished the rehab work, they proposed to manage the property by themselves too, which after negotiations, I agreed. After a couple of months, they found a tenant and took a security deposit with them. I was supposed to receive my first rent the first week of September. However, two weeks passed, I did not receive any money. So, I sent an email inquiring about the status of the payment and did not get response for a couple of days. Then, I tried to call them only to find that the phone number I was given was disconnected. So, I tried to contact them with all other email addressees and phone numbers that I found from the Internet and through mutual acquaintances. No responses.
At that point, I was panic, thinking (and knowing) that I was duped and that they took advantage of the fact that I am an out of state (and out of country) investor (please do not start the whole discussions about people should not invest out of state etc.).
They finally contacted me two weeks later to tell me that they were "on emergency leave" and be back in three week. I told them that I cannot wait for three more week and asked them to immediately disburse the rent to me to which they did not respond. After several more futile attempts, I terminated the management contract.
After I terminated the management contract , I asked for the transfer of a security deposit to my new management company and the September rent, they refused, saying that under the management contract they are entitled to keep the security deposit as their one time marketing and management fee. They also said that after the tenant moves out, I as an owner have to pay back the deposit. I repeatedly told them that the contract does not say such things and that even if the contract says so (which it does not), it is a violation of Georgia Real Estate Law to use Escrow money for any purpose other than damages when a resident moves out of a rental space. Sam Davis of Davis Property Management South has refused to communicate with me and to return the tenant's security deposit and disburse the September rent to me.
I, through my new property manager, filed a request for investigation at Georgia Real Estate Commission and filed a police report as a “theft by taking”. Is there anything I can do to go after these guys?