Does anyone know if there is a Texas law that states all late fees must go to the property managers? We are using a property manager in San Antonio that has collected $200 a month in late fees from our renters for a year and a half off a property I own. The property manager has advised us there is such a law but I can't find a reference to it. It seems there is no incentive to enforce tenants to pay on time if there is such a law.
Thank you for any help.
I live in Midland tx. I have no idea if this is a law or not. I would tell the management company to show me the law.
There is no such law. This would be something that is typically addressed in your agreement with the property manager. Although not uncommon, I agree with you that having such an agreement really reduces the PM's motivation/incentive to get the tenant to pay on time since there is a built-in financial incentive when they pay late.
So the PM has collected 3,600 and not given it to you??
What does your PM agreement say??
Have you verified that this PM company is actually licensed and insured??
If your PM agreement doesn't state that the PM keeps late fees as part of their service then you might try to get them to say in an e-mail they haven't paid you the late fees.
Then look at possibly going after them for recourse as it borders on theft.
No legal advice.
Thank you all for the responses. It has given me enough backing to confront the PM. My wife and I became accidental landlords by virtue of jobs taking us to another state and not selling our house.
The contract does not state anything regarding PM keeping late fees. He is licensed and insured. It is a legit management company, I am thinking there might be some shenanigans between him and renter. Renter has paid late every month for a year and a half. The PM has made $3600 in late fees and $3600 in regular fees off our property. Our rent is deposited in n our account by PM anywhere from 3 to 5 days after rent is paid causing us to dip into savings to cover the rent. The excuse is always that their "system" is malfunctioning. We do have an email that explicitly says it is Texas law that they keep late fees.
I feel stupid just getting my attention on this now but as I said we are accidental landlords.
Again, thank you all.
You could help SA investors if you let us know who you're dealing with. Good property managers can be hard to find, and the earlier you can weed out the bad ones the better.