Property Mgmt Co filed Chapter 7 Bankruptcy - What to do now?

Warren, Michigan
Managing Your Property
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Property Mgmt Co filed Chapter 7 Bankruptcy - What to do now?

Karen Durfee
Real Estate Investor · Turlock, CA · Member since 2017 · 3 posts · 1 vote

My property management company filed Chapter 7 Bankruptcy and I cannot reach them.  I'm sure many of you from Warren, Michigan have heard of them. They are Autumn Property Management Co, aka ProWay Property Management Co and Strategy Propertty Management Co.  They have been horrible and I need to find a new property manager.  Anyone have some good recommendations?  Also, since I was notified of their Bankruptcy claim, do I still need to adhere to their 60 days notice to terminate the contract?  (Actually, I didn't sign a reacent PMA contract with them since the last ones just auto-renewed.)

I may also need a real estate lawyer there if I need to get out of my contract. I'm taking recommendations for them as well, in the Warren, Michigan area.

Thank you.

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Bob S.
Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes
2y
Quote from @Karen Durfee:

My property management company filed Chapter 7 Bankruptcy and I cannot reach them.  I'm sure many of you from Warren, Michigan have heard of them. They are Autumn Property Management Co, aka ProWay Property Management Co and Strategy Propertty Management Co.  They have been horrible and I need to find a new property manager.  Anyone have some good recommendations?  Also, since I was notified of their Bankruptcy claim, do I still need to adhere to their 60 days notice to terminate the contract?  (Actually, I didn't sign a reacent PMA contract with them since the last ones just auto-renewed.)

I may also need a real estate lawyer there if I need to get out of my contract. I'm taking recommendations for them as well, in the Warren, Michigan area.

Thank you.

You are overthinking it. simply hire a new one.  YES that simple. Call the tenants , let them know you are hiring a new one. In the mean time pay me the rent, 

Good luck 

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  • Michael SmytheBusiness Member
    Real Estate Agent · Metro Detroit · Member since 2023 · 4k+ posts · 3k+ votes
    2y

    What are they going to do if you terminate your management contract with them ASAP?

    Your bigger challenge will be getting your tenant info, lease and security deposit from them.

    Focus on the tenant contact info, lease & ledger for now.

    Once you get that, then pursue the security deposit - which, from seeing two other PMC's file, you have almost no chance of getting:(

    Logical Property Management4.9464 Reviews
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  • Bob S.
    Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes
    2y
    Quote from @Karen Durfee:

    My property management company filed Chapter 7 Bankruptcy and I cannot reach them.  I'm sure many of you from Warren, Michigan have heard of them. They are Autumn Property Management Co, aka ProWay Property Management Co and Strategy Propertty Management Co.  They have been horrible and I need to find a new property manager.  Anyone have some good recommendations?  Also, since I was notified of their Bankruptcy claim, do I still need to adhere to their 60 days notice to terminate the contract?  (Actually, I didn't sign a reacent PMA contract with them since the last ones just auto-renewed.)

    I may also need a real estate lawyer there if I need to get out of my contract. I'm taking recommendations for them as well, in the Warren, Michigan area.

    Thank you.

    You are overthinking it. simply hire a new one.  YES that simple. Call the tenants , let them know you are hiring a new one. In the mean time pay me the rent, 

    Good luck 

    3Reply
  • Jeffrey EdwardsPro Member
    Real Estate Broker · West Bloomfield, MI · Member since 2018 · 152 posts · 77 votes
    2y

    How many properties do you have in Warren? 

    I self manage my 10 units.  I will manage for others but I don't actively advertise.  As long as they are not in Detroit, I'm willing to help.  Give me a call if you're interested. 

    Edit: I personally have 2 rentals in Warren so I have a good relationship with the City and I'm aware of all their requirements. 

    [email protected]248-270-2740
    1Reply
  • Lisa Hammond
    Real Estate Professional · Newton, KS · Member since 2016 · 44 posts · 36 votes
    2y
    Quote from @Bob S.:
    Quote from @Karen Durfee:

    My property management company filed Chapter 7 Bankruptcy and I cannot reach them.  I'm sure many of you from Warren, Michigan have heard of them. They are Autumn Property Management Co, aka ProWay Property Management Co and Strategy Propertty Management Co.  They have been horrible and I need to find a new property manager.  Anyone have some good recommendations?  Also, since I was notified of their Bankruptcy claim, do I still need to adhere to their 60 days notice to terminate the contract?  (Actually, I didn't sign a reacent PMA contract with them since the last ones just auto-renewed.)

    I may also need a real estate lawyer there if I need to get out of my contract. I'm taking recommendations for them as well, in the Warren, Michigan area.

    Thank you.

    You are overthinking it. simply hire a new one.  YES that simple. Call the tenants , let them know you are hiring a new one. In the mean time pay me the rent, 

    Good luck 


     This. And also reach out to the tenants directly to see if they have their leases. Let them know that if they don't have their leases, can they still log into portals to get their ledgers and records of payments? This would at least help you determine an approximately lease time. If you get absolutely nothing, get another lease out to the tenant with a clause that this new one super cedes any other leases due to loss from current PM company. I would also get with an attorney immediately. Review all your previous documents and owners statements from them because you'll need to put a claim in for any tenant deposits they're holding - and you'll be covering those deposits on your own if needed in the meantime. 

    0Reply
  • Bob S.
    Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes
    2y
    Quote from @Karen Durfee:

    My property management company filed Chapter 7 Bankruptcy and I cannot reach them.  I'm sure many of you from Warren, Michigan have heard of them. They are Autumn Property Management Co, aka ProWay Property Management Co and Strategy Propertty Management Co.  They have been horrible and I need to find a new property manager.  Anyone have some good recommendations?  Also, since I was notified of their Bankruptcy claim, do I still need to adhere to their 60 days notice to terminate the contract?  (Actually, I didn't sign a reacent PMA contract with them since the last ones just auto-renewed.)

    I may also need a real estate lawyer there if I need to get out of my contract. I'm taking recommendations for them as well, in the Warren, Michigan area.

    Thank you.


     Just contact the tenants , and have them pay you directly until you find a new PM, You do not need an attorney, just move on 

    0Reply
  • Josie Brown
    Detroit, MI · Member since 2022 · 118 posts · 49 votes
    2y

    Hi Karen! You definitely will want to find a new property management company and work on getting the tenant's lease, ledger, and contact information. A new property manager can try to help with this during the transfer process as well. I have worked with other investors in similar situations so feel free to reach out to me directly if you have any other questions!

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