Suing Property Manager breach of contract and negligence

Suing Property Manager breach of contract and negligence

Developer · Santo Domingo, Distrito Nacional · Member since 2016 · 121 posts · 53 votes
Good Day Everyone! I have a big problem. I hired a property manager in Jacksonville, Fl to manage my property. This property manager for the year I been with him has been a nightmare. Tenant screening was horrible, his tenants was late paying rent, and now he has abandoned my building. Now the tenants skip the property as of today per his email he simply canceled out agreement as of today without doing a walk through on the property etc. Leaving the property vacant unsecured. I am an out of town investor. I realized he is not licensed in the state of Florida and he told me he was licensed and insured. I sent him a cancellation notice to cancel are agreement on april 30, 2017. Can I sue for damages done by tenants that exceed the security deposit, breach of contract, negligence as a property manager? Here is his email Final Collections: April 2017 $0.00/ / For April 2017 $0.00/ / For April 2017 Vacant Address: .......as of 03/06/2017 ....... as of 04/14/2017- Tenant Skipped Out Final Expenses Paid Out: $0.00 RDS Mgmt Fee For ..... $0.00 RDS Mgmt Fee For ..... Bank Deposits: As of 04/14/17 None Outstanding Invoices: None Final Security Deposit Audit: As of 04/14/17 $0.00 on hand for ..... $550.00 on hand for ...., ...............accepts the termination notice immediately as of 04/14/2017...Please provide us your current business address so all property correspondences can be turned over via certified mail asap...Thanks! Here is a copy of what he wrote me on an email
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Rod HanksBusiness Member
Insurance Agent · Dallas, TX · Member since 2013 · 743 posts · 462 votes
9y

You have a challenge, not a problem. I'm assuming this PM was not referred by another investor whom you trust and also you didn't verify his credentials or speak to his references. Of course you can sue and you will probably win, but after you consider attorney fees, court costs, your time away from your business, etc and the real possibility you will never collect on a judgement.... is it worth it? Properly screen your PM and you will lessen the chance of this happening again. 

GoodLuck!!!

Rod Hanks Insurance4.9155 Reviews
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  • Rod HanksBusiness Member
    Insurance Agent · Dallas, TX · Member since 2013 · 743 posts · 462 votes
    9y

    You have a challenge, not a problem. I'm assuming this PM was not referred by another investor whom you trust and also you didn't verify his credentials or speak to his references. Of course you can sue and you will probably win, but after you consider attorney fees, court costs, your time away from your business, etc and the real possibility you will never collect on a judgement.... is it worth it? Properly screen your PM and you will lessen the chance of this happening again. 

    GoodLuck!!!

    Rod Hanks Insurance4.9155 Reviews
  • Investor · Wasilla, AK · Member since 2016 · 277 posts · 139 votes
    9y

    Good news.... you're free of a bad management company before they slowly bleed you to death.  

    I wouldn't try to sue... too hard to prove responsibility unless your contract with the specifically states that they would be responsible for damages... and then even so.... do they have any money?

    Where to go from here?  I've had to find a new manager for a New York property from Alaska.... that was tough... I'm sure if you grit your teeth and get it done, you can find someone decent.  This is where the work part of the business come in.  I hope you can find someone with integrity to work with you.

  • Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
    9y

    You need to file with DBPR if he is not licensed. Bad licensees are a problem, unlicensed people providing services requiring a license are even worse. 

    You can file here:

    http://www.myfloridalicense.com/dbpr/re/documents/re-2200-1.pdf

  • Kim Meredith HamptonBusiness Member
    Real Estate Broker · St Petersburg · Member since 2014 · 2k+ posts · 2k+ votes
    9y

    @Joel F. I agree with @John Thedford, unlicensed activity is at a all time high because investing and PM is a hot ticket!!! File right away with the DBPR as John provided. We must clean these people up and report. Failing to report allows this individual to go and do this again to someone else. 

    In addition, please make sure that you conduct due diligence with whomever you hire. Check them out on DBPR and make sure licensed and if they have any complaints filed against them

  • Developer · Santo Domingo, Distrito Nacional · Member since 2016 · 121 posts · 53 votes
    9y
    Rod Hanks thank you!
  • Developer · Santo Domingo, Distrito Nacional · Member since 2016 · 121 posts · 53 votes
    9y
    Sam LLoyd thank you for your reply.
  • Developer · Santo Domingo, Distrito Nacional · Member since 2016 · 121 posts · 53 votes
    9y
    John Thedford I filed with the state and attached all supporting documents. Thank you for your reply.
  • Developer · Santo Domingo, Distrito Nacional · Member since 2016 · 121 posts · 53 votes
    9y
    Kim Meredith Hampton I filed as soon as I was aware that he was not licensed. I saved all support documents and emails so the state to go after him or his organization.
  • Rental Property Investor · Jacksonville, FL · Member since 2015 · 343 posts · 142 votes
    9y

    I live in Jacksonville FL and will be placing my primary residence as a rental needing a PM. Can you share his details so we don't choose make the mistake and EVER select this character?

  • Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
    9y

    @Mitchlyn D.

    Go to www.myfloridalicense.com to verify if someone is a licensee. You can also look up their history for complaints and actions taken.

  • Developer · Santo Domingo, Distrito Nacional · Member since 2016 · 121 posts · 53 votes
    9y
    Rod Hanks it's probably not a good idea for me to sue with attorney fees etc so I would have the state go after him. I learned from my experience not to trust no one do all due diligence before entering into an agreement.
  • Developer · Santo Domingo, Distrito Nacional · Member since 2016 · 121 posts · 53 votes
    9y
    Mitchlyn Davis I can't give up his company name or personal name then he will sue me. If everything goes smoothly his company and name will be on ripoff website. John Thedford gave you good suggestion to go to state database do your research on PM.
  • Professional · San Antonio, TX · Member since 2015 · 87 posts · 67 votes
    9y

    Here's an excellent way to avoid bad property managers.

    The best place to go to search for a great property manager is the National Association of Residential Property Managers website - www.NARPM.org

    You can search for members in the local area where your rental property is located.

    Look for members with designations like Residential Management Professional (RMP) or Master Property Manager (MPM). These are property managers that are way above the rest, and the ones that can be trusted to provide quality service and care for your investment property.

    Also another designation to look for if you can find it is a company that has there CRMC designation. There are only about 60 management companies that are Certified Residential Management Companies. (CRMC).

    These are companies that have been audited by the National Association of Residential Property Managers and have demonstrated a high standard of both procedures and customer service.

    Again, the best way to find a good property manager is to seek a property manager out and has invested in advanced training and education and has attained designations; usually, they also have years of experience and a proven track record.

  • Developer · Santo Domingo, Distrito Nacional · Member since 2016 · 121 posts · 53 votes
    9y

    @Account Closed thank you will do! Investing away from your city is very risky!

  • Rental Property Investor · Jacksonville, FL · Member since 2015 · 343 posts · 142 votes
    9y
    Originally posted by @John Thedford:

    @Mitchlyn D.

    Go to www.myfloridalicense.com to verify if someone is a licensee. You can also look up their history for complaints and actions taken.

     Ok. Thanks!!

  • Investor · Sapulpa, OK · Member since 2013 · 146 posts · 50 votes
    9y
    Good luck ever collecting from that guy. Best option might be to assess the total damages, make a plan to fix everything and correct course, then figure out a better way to manage properties from out of state.
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