Thanks for the quick responses. And yes, there is
more... a lot more. I was hoping for a simple
answer to the question about the late fees. I
didn't want to come off as someone out to bash
property managers. I also didn't want to start off
with a long complex scenerio.
Unfortunately, it isn't spelled out in our contract
with the property manager who gets the late fee.
You may ask why it matters if a late fee was
charged or action wasn't taken against a perpetual
late renter. The company that sent us overseas
really watches out for the financial well being of
the employees that take these assignments. If a
suitable renter is not found, the company pays the
mortgage until one is found. A late paying renter
sends up a red flag. Action could have been taken
to get the delinquent tenant out and a reliable one
in. (side note: the company no longer requires the
employee to sell or rent out their house, probably
due to too many problems such as ours)
The Property Manager (company)
We chose this PM since he was recommended by a
neighbor who took an international assignment (as
did we) and was satisfied with the service he
received. In addition to this PM, we also
interviewed 2 more, and made our decision after
reviewing the info to the best of our ability. We
had never been a renter, or a landlord before, so
we learned on the fly.
While we were living in Germany, we received email
statements every month from the PM. There was a
date next to the payment, but we really didn't
notice it. It appeared payment was on time, since
there were not comments or late fees included.
The contract with the tenant was for 3 years. We
found we were returning home 6 months before the
tenant was contractually required to leave. About
5 months before we were to return, we inquired with
our PM if the tenant would be willing to leave 6
months early. We received an email from the PM
that they would move out by 31 July. We could
move in Aug 2 (after cleaning was done).
Three days before we are to fly home (and our
belongings are on a ship), the PM tells the tenant
won't move out. (the PM never got it in writing).
Then he tells us they want 3 months rent for their
troubles. Had the tenant requested compensation
when we originally made the request, we could have
come to some agreement.
It's at this time the PM emails us and tells us the
tenant would like us to give positive payment
history so they can get another place. And now
includes the info that they were late 25 times.
The PM told us that 'he' paid the money until the
tenant finally paid. (had we known this, we would
not have permitted this to happen. We knew going
in that the tenant had had a bankruptcy in the
past, but we are forgiving people and willing to
give people a chance)
So, we return scrambling for a place to live. The
tenant doesn't leave for another month and a half,
and also stops paying rent. The PM tells us not to
pursue eviction since then the tenant would just
pay up and stay for the remainder of the contract.
In the end. they didn't pay for the last 3 months
and left us with a $950 water bill (water is billed
to occupant).
AND.. our property manager sent us inspection
reports indicating the home was being taken care of
even though the yard was trashed and damage was
done in the house. It is clear that the PM rarely,
(or never) physically inspected the property and
house.
The damages to the house, rent, and water bill were
way more than their security deposit. So, we are
out over $10,000.
I have since found through a lawyer, that the
tenant had 3 bankruptcies (we knew about one), has
a state tax lien, and a line of creditors trying to
collect. Also they had been previously evicted,
something our PM didn't tell us.
What I find totally ironic (from some research)....
is they seem to have an expensive cottage, have a
boat, and could (I'm assuming) afford an expensive
wedding at an exclusive club for their daughter
just months before moving out.
So, we are trying to recover as much as we can. We
are not rich, so we returned very short on cash
(unable to buy some essential things we got rid of
prior to moving, like a riding mower, snow blower,
etc. things that we planned to purchase on our
return.) Money we did have went to replace the cars
we sold prior to moving and other expenses related
to moving back into the house.
The money owed to us is not enough to justify an
attorney (attorney fees will eat up a lot of what
we should get). I will probably take the PM, and
the tenants to small claims court.
After that, I will be filing a formal complaint
with our state real estate licensing board. Hope
the PM gets severly disciplined, then he won't
likely be able to inflict harm on other's like he's
done to us.
Whenever there was a problem (washer went out, we
bought a new one; electrical issue, we paid an
electrician even though it was the power provider's
issue; clogged drain- paid for a plumber even
though it was baby wipes from their grandchild). We
took care of it. We never had any communication
with the tenant - it was all through the PM. But
we would bend over backwards to have a good
landlord/tenant relationship. But instead, we got
screwed.
So, as Paul Harvey would say 'that's the rest of
the story'.
