How to handle property management misconduct

Question

Looking for some advice from other landlords because I'm at a loss here.

I own a rental in Garfield Heights, OH that has been managed by the same property manager for around 2 years. Unfortunately, I've had multiple tenants placed by him who stop paying within the first 1 to 2 months, resulting in several evictions and cash-for-keys. Meanwhile, I have other Ohio rentals (including one in a worse neighborhood under a different PM) that are doing just fine.

The current situation is the worst yet. The property has produced only one rent payment in about a year due to vacancy and another non-paying tenant. My PM told me the eviction was filed on July 1, but won't provide a case number despite repeated requests. I searched the Garfield Heights court records and can't find a filing, and the court told me their records are current, so it appears it may never have been filed.

To make matters worse, I discovered that after the previous tenant was evicted, the attorney handling the case emailed my PM four times requesting information needed to pursue a money judgment for unpaid rent and damages. My PM never responded, and the court ultimately dismissed the damages claim for want of prosecution. I only learned this by calling the attorney myself.

At this point I've lost confidence in the PM, but I'm also worried about making the situation worse while there's still a non-paying tenant in the property.

Has anyone dealt with something similar? Would you:

• 1. Push the current PM to finish the eviction, then replace him?
• 2. Fire him immediately and hire an attorney/new PM to take over?
• 3. Pursue a complaint against the PM with the Ohio Division of Real Estate or another agency?
• 4. Request reimbursement from the PM for all the damages due to his negligence?

I'd really appreciate hearing from anyone who's been through something like this.

Drew Sygit · Answer

From your side of the story it appears the PMC is incompetent and negligent.

Why did you hire them?

What was your PMC screening process?

You need to review and improve before trying to hire a new one!

As soon as you have a decent replacement lined up, FIRE this one!

Of course, while looking for a new PMC, review the termination language in your current PMA. Pay special attention to any language about negligence.

Doubtful it's worth pursuing damages against this PMC as their PMA probably protects them against it.

As @Reminton Lyman suggested, pursue complaints against this PMC! Operators like this need to be put out of business for giving our industry a bad name!

Bill B. · Answer

Contact the PM that’s working out for you. Tell them if they handle the transfer of the property you will give it to them to manage. Tell them you’re willing to sign a POA regarding the transfer of management rights.  That should handle it.

Luka Jozic · Answer

Are you saying Ohio Division of Real Estate would actually help get damages from the PM or the tenant?

Richard F. · Answer

It is obvious they are not even close to properly screening applicants. You need to stop the bleeding today, and not wait another six months or longer for any reason.

Review your management agreement to determine the possible COST of firing the PM. If there is a cost for anything beyond a simple 30 day notice of cancellation, you need to demand they waive those costs due to the facts that you spell out along with written instructions to NOT re-rent the unit under any circumstance. Terminate the management agreement, sending it Certified, Return Receipt Requested.

Get the property vacated and secured so you can inspect, document, and determine actual damages before seeking damages and making complaint with govt authorities. You need to get possession and control before determining damages you wish to claim against the PM.

With so much turnover, cash for keys, etc. I would be very concerned how much of that is real, and what might be just fraud. I would demand a meeting to review the current and past rental agreements, screening results, tenant ledgers, and all inspections/photos over the entire period.

It will cost you much less to start this today rather than tomorrow.

Andrew Kim · Answer

Oh man, sorry to hear.

You've already done the most important thing: verified the court record yourself. When a PM won't produce a case number and the court shows no filing, definitely a trust killer. engage the eviction attorney directly and have them file. Line up the replacement PM now and time the termination so the new one takes over collections and keys the same week. Before sending notice, reread the PMA's termination and negligence language, and terminate in writing. File the Ohio Division of Real Estate complaint regardless of which path you pick. Reimbursement is likely uphill (low success in my experience) but the damages claim dismissed because of four ignored attorney emails is your strongest documented loss if you pursue it.

Remington Lyman · Answer

I would do 2 and 3. The division will mediate the complaint and try to settle damages with you

Remington Lyman · Answer

Potentially if they are in the wrong. They would mediate the situation and try to reach a settlement

Jimmy Lieu · Answer

Great question and welcome! Based on everything you shared, I'd be looking at replacing the PM immediately. The bigger issue isn't the non-paying tenant—it's that you've lost trust in the person who's supposed to be protecting your investment. If they told you an eviction was filed but can't provide a case number and the court has no record of it, that's a major red flag. Add in the fact they ignored multiple requests from the attorney and let a money judgment get dismissed, and I'd have a hard time giving them another chance. I'd hire a local real estate attorney to verify the status of the eviction, take over if needed, and then transition the property to a new PM. At the same time, I'd gather every email, ledger, invoice, and communication because you may have grounds to pursue reimbursement depending on your management agreement and the extent of the damages. If they're a licensed real estate broker or agent in Ohio, filing a complaint with the Ohio Division of Real Estate may also be worth considering after you've secured the property and gotten the eviction back on track. Happy to connect and answer any questions you have!

How to handle property management misconduct

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