Property managment company holding onto rent

5 Replies

I own a rental property in Michigan. My experience is limited to 4 years renting the property and use of a property management company. I have had problems with the service for the last 6 months. The most recent tenant moved out. The property management company is holding onto the rent from October and November, which I should have received from them 10/20 and 11/20. They ignore my attempts to get them to send the funds to me. I decided to cancel the service. They responded to this by asking me to sign a cancellation form. I did. It said I would receive my funds 21 days after cancellation (did not say business days). This was sent to them 12/15. Now it is past due, they are once again ignoring any communication I send them on the matter. Any advice on the next step?

Contact your lawyer, have them send a letter to them, to me they are stealing from you and in breach of your contract that says they will send you the income every month, assuming you have paid them in full.

Rental income are trust funds and not something to mishandle.   A quick phone call letting them know that the Michigan Real Estate Commission will be your next point of contact will close this out for you very quickly. 

If they are a member of an association of REALTORS somewhere, file a complaint with their association.  That should get their attention.  If you're a member of an association like the RPOA in Grand Rapids and they are too, you could file a complaint with the association.  You could also take them to small claims court.  You probably won't need an attorney for a small dollar amount.  Just be sure to have your proof all lined up before going to the hearing.  Some property owner associations also provided assistance with small claims cases.  And, they might have an attorney on call for free advice.  Good luck!

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

We hate spam just as much as you