Property Management Company steals from you, what can you do?

Property Management Company steals from you, what can you do?

Member since 2018 · 7 posts · 0 votes

I have been in the rental business for over a year with a PM company in Philadelphia. They have literally stolen thousands of dollars from me, overcharged me hundred of dollars in management fees, refused to disburse collected rents to me. 

I have been talking to them for 4 months now. In one month, they charged back to tenant for $6100 of damages to the apartment. The tenants already moved out, and it is very difficult to collect any of that money from them. So they deducted that money from the rent collected from my account. In addition, they did not have any receipts or invoices on the actual cost of repairing the damages. As I demanded, they fabricated two very crude invoices saying they actually spent that much money cleaning and repairing the apartment. Then the next month, they charged another $4200 for cleaning and turning over a six bedroom apartment.

They just do not acknowledge that they screwed up on the accounting and overcharged me on 3 months' management fees.

Why is it that I am the landlord and I have to beg to get my money from the management company, and they can take and charge whatever to my account as they please? I am at the mercy of these crooks! This is so unfair!

What options do you think I have in order to get the money that belongs to me? Are there any legal actions I can take?

They are currently holding thousands of dollars of security deposit and last month's rent. I am afraid that if I cancel the contract with them, not only will I not be  able to get the overcharges and stolen money back, I won't be able to get these monies they are holding.

What can I do? I am looking for a good attorney, please recommend. 

Thank you

Susan

Thank you so much for your input.

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Investor · Columbus, OH · Member since 2015 · 625 posts · 601 votes
7y
@Susan Shen Name the company!
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  • Contractor · Olathe, KS · Member since 2015 · 89 posts · 33 votes
    7y
    @Susan Shen I would contact a attorney. It sounds like they would have breached the contract. But that only allows you out of the contract. If they are doing illegal business practices you may try a news out let. Some have a problem solvers unit for stuff like this. However I would start with an attorney. Also it sounds like terminating and getting with a reputable company should be on your list to get done right after you contact a lawyer. Do not let this go another minute. .
  • Contractor · Olathe, KS · Member since 2015 · 89 posts · 33 votes
    7y
    @Susan Shen Also the story sounds a little off. No PM should make repairs without your approval.
  • Member since 2018 · 7 posts · 0 votes
    7y

    I know, it is ridiculous. In our contract, there is a limit of $350 when they have to get approval.... But they do not need approval for turnover due to time constraints, that is why they claim the $6100 is used for tenant damages to apartment..

    The approval does not mean anything,  without any approval or communication, they just take and charge whatever from the collected rent and disburse the left overs to me, because they collect and control the rent and the rent becomes their money, and I have to beg to get paid ......

  • Attorney, CPA, Broker & Author · Scottsdale, AZ · Member since 2018 · 532 posts · 488 votes
    7y

    @Susan Shen Assuming the property manager has a real estate license, contact your state licensing board and consider filing a complaint. The board may not get you your money back, but they will definitely get the attention of the property management company (assuming they're licensed).

  • Investor · Columbus, OH · Member since 2015 · 625 posts · 601 votes
    7y
    @Susan Shen Name the company!
  • Investor/Real Estate Agent · Allen, TX · Member since 2012 · 33 posts · 10 votes
    7y
    Property management involves renting, leasing and holding security deposit. Thus, the property manager will need to hold an active broker license. Suggest you contact your state real estate license board to see what remedies are available. If property manager does not have the necessary license to conduct real estate activities, then he or she is breaking the law. I would then consult an attorney.
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