Help finding a lawyer to proceed against a bad property management company

Member since 2021 · 8 posts · 0 votes

Hello,

I am seeking assistance in finding a real estate lawyer who specializes in helping clients get out of contracts with property management companies. The final straw was when my property went into abatement after an inspection, due to the property management company's failure to address tenant requests for the exact items that caused the issue. This lack of response was a major factor in my decision to seek legal assistance. I am bleeding funds and I need to act quickly. My property is in Baltimore city. I would greatly appreciate any guidance or recommendations. Thank you for your time.

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Charles Granja

Rental Property Investor · Kansas City/Chicago · Member since 2021 · 126 posts · 113 votes

I mean, you might be better off taking the case on yourself.

You can break a management agreement whenever you want, but there are fees associated with that. I would imagine the best actions would be to immediately fire the management company, pass the keys onto a new one, sue the old one in small claims court for the listed damages. This is assuming that you can prove that the issue was their fault, and not yours.

The problem is that the cost of litigation is very high, likely not worth it. It is also risky when you consider that if you lose, you do not get reimbursed for legal fees.

If you feel that you will win rather quickly, why not represent yourself? The process is rather straightforward. It is just a headache to learn.

Would love to hear what others will say. When I sued someone for breach of contract it costed probably around $1500, but I filed, did majority of the work, and had my attorney there for negotiations. Another time I sued someone for breach of contract and it costed around 12-15k, this was a complex and much longer case.

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Kristin Boekhoff
Orlando, Baltimore · Member since 2023 · 24 posts · 9 votes
1y
Jae,
Diana Khan is a well-known real estate attorney in Baltimore City. She doesn't "specialize" in this per se, but I have used her for several real estate legal issues. You can tell her I referred you if you like.
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Charles Granja
Rental Property Investor · Kansas City/Chicago · Member since 2021 · 126 posts · 113 votes
1y
I mean, you might be better off taking the case on yourself.
You can break a management agreement whenever you want, but there are fees associated with that. I would imagine the best actions would be to immediately fire the management company, pass the keys onto a new one, sue the old one in small claims court for the listed damages. This is assuming that you can prove that the issue was their fault, and not yours.
The problem is that the cost of litigation is very high, likely not worth it. It is also risky when you consider that if you lose, you do not get reimbursed for legal fees.
If you feel that you will win rather quickly, why not represent yourself? The process is rather straightforward. It is just a headache to learn.
Would love to hear what others will say. When I sued someone for breach of contract it costed probably around $1500, but I filed, did majority of the work, and had my attorney there for negotiations. Another time I sued someone for breach of contract and it costed around 12-15k, this was a complex and much longer case.
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Jae Yoo
OP
Member since 2021 · 8 posts · 0 votes
1y
@Charles Granja

While you certainly make valid points, I’ve come to realize that this unscrupulous company is quite devious, and getting things transferred from them could be a challenge. So, pursuing litigation has its advantages. I’m considering having a lawyer send them a certified letter, though I know that will still come with a significant fee, which is still preferable to full service. Additionally, I don't have the time to sift through all the legal jargon and pinpoint where they’ve breached the contract, so it's worth having a lawyer review it in my situation. I admire that you've handled most of the filings yourself, but I’d prefer to take a more hands-off approach. I understand that means paying the right professional for their services.
Would like to hear other opinions if there are any out there!!

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Drew SygitBusiness Member
Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
1y
@Jae Yoo you'll find it will cost more to sue the PMC than you will recover.
While contemplating that, do the following:
1) Review your PMC contract to determine how to terminate. You may need to seek legal counsel on this.
2) Get all the info about your rental property as possible: leases, rent ledgers, tenant contact info, etc.
3) Start looking for a new PMC
4) Execute your termination notice
5) Once transfer is complete, circle back to decide if worth suing them.
[email protected]248-209-6824
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