Property Manager closes and doesn't complete payout from Eden

Member since 2023 · 12 posts · 4 votes

Hoping for some help in this. My PM went out of business and was "closed" Jan 1, 2026. Upon switching to a new PM, I learned that a lump sum payment was made to the old PM for 5 months of rent (about $6k). PM acknowledged receiving the money when sending out the tenant ledger but never transferred me the money. Is there any recourse I could take that would recover this money? It has been too long to have Eden pull funds back and reissue to me. Naturally, the old PM is not returning my calls or emails. Any sound advice is appreciated!

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William WhitleyBusiness Member
Accountant · TN · Member since 2025 · 144 posts · 91 votes
7mo
While I know there's a cost to it, I would encourage you to have an attorney deal with this on your behalf. The former PM is more likely to respond to an attorney representing you than responding to you directly. While there is no guarantee you will ever receive your payment, you have a better chance with legal counsel than without.

I hope it works out for you.

Bill
Accountable Balance Bookkeeping, LLC
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Brad NowakPro Member
OP
Member since 2023 · 12 posts · 4 votes
7mo
Thank you.
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Arman AhmedPro Member
Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2024 · 2k+ posts · 905 votes
7mo
@Brad Nowak

Tough situation. Gather all docs- management agreement, tenant ledger, payment records, emails showing they got your rent. A demand letter from an attorney often gets results and may tap their insurance or bond. Acting fast with clear proof gives you the best shot at getting your money back.

[email protected]614-418-6081
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Brad NowakPro Member
OP
Member since 2023 · 12 posts · 4 votes
7mo
Thank you, Arman! Great insight. I appreciate it.
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Bo SmithPro Member
Hinton, WV · Member since 2026 · 1k+ posts · 373 votes
7mo
That's brutal, sorry you're dealing with this. File a complaint with your state's real estate commission since PMs are licensed. Also check if they had errors & omissions insurance - sometimes that covers client funds. Have you already checked if they filed for bankruptcy? That changes your recovery options completely.
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Michael SmytheBusiness Member
Real Estate Agent · Metro Detroit · Member since 2023 · 4k+ posts · 3k+ votes
7mo
Quote from @Brad Nowak:

Hoping for some help in this. My PM went out of business and was "closed" Jan 1, 2026. Upon switching to a new PM, I learned that a lump sum payment was made to the old PM for 5 months of rent (about $6k). PM acknowledged receiving the money when sending out the tenant ledger but never transferred me the money. Is there any recourse I could take that would recover this money? It has been too long to have Eden pull funds back and reissue to me. Naturally, the old PM is not returning my calls or emails. Any sound advice is appreciated!

Options:
1) Call Eden as they may claw it back from previous PMC for other properties they pay them on.
2) What licenses did previous PMC have?
- Hopefully some type of real estate license, allowing you to contact the state's real estate board to lodge a protest.
3) File complaint with state's Attorney General's office
4) Hire an attorney.
Logical Property Management4.9446 Reviews
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Brad NowakPro Member
OP
Member since 2023 · 12 posts · 4 votes
7mo
Thank you for the reply Michael. Not sure what licenses they held and unfortunately they are no longer in business so taking funds from other properties is likely nit possible. That said, im not sure if the company is still active or not either. I could certainly look that part up.
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