Property Management Company Woes!!
Okay, I am having problems with my property management company. I have an out-of-state rental and when I hired a property management company to manage the property. Some of the attractions were the really low rates that they charged for maintenance ($16/hr). My troubles began when I noticed that the estimates they gave me for repairs were always much lower than the final bill that I received. I complained about this and the owner said they would give me more accurate estimates but I would have to pay for the time to research the actual costs. I agreed. He didn't sound too happy about it but I considered it a fair compromise.
The current issue that we are dealing with is as a result of cleaning dispute. When I handed over the keys to the management company, I had gone over and thoroughly cleaned the home and we both inspected the home together. When we found tenants, the property needed to be painted and the painting was done at $16 and hour. Before the tenants moved in, I was having a conversation with the owner and he let it slip that they would be charging me for sending in a cleaning person to clean up after the painter. I told him no, I would not pay for a cleaner since the house was handed over in a clean condition. He told me he would get back to me but never did. The tenants moved in and the next thing is I get a bill of $150 for cleaning. I called them up and refused to pay it because we have a clause in the management contract that any charge above $100 needs to be pre-approved by the property owner.
They became really upset and sent me notification to terminate our management agreement. The owner actually said "How can I expect the painter to clean the property at $16/hour". Now this was my first time dealing with a management company but I always thought a painter had to leave the property in the state they found it and this was included in their costs.
Anyways, this company has become quite nasty. We are in the final 60 days of our agreement (after the 90 day notification) and they are refusing to send me receipts for charges that are on my account. They say that they cannot release the receipts until they send me the final packet. They have also refused to put me in touch with the tenants (I never met them and they don't know me). I have sent a letter to the tenants explaining that the property management company will no longer be responsible for the property and requesting their contact information, but have received no response.
My questions are:
* Is the property management company justified in their actions? Was I being unrealistic to expect the painter to clean up?
* Can they actually terminate based on these circumstances? And do they have the right to hold on to the receipts till the final packet? (The agreement states "Receipts will be provided" but as the office manager said when I asked for the receipts, the agreement never states when the receipts will be provided).
* What recourse do I have if I feel I have been unjustly treated? Is there a body that oversees the actions of property management companies?
* How best should I handle this transition to be sure that I continue to receive my rent checks timely?
Thanks in advance for any help and I apologize for the long post.
JS
:-(
Hello,
The property management firm you have, in my opinion, is a one horse show.
Were I you, I'd look elsewhere.
Thanks,
OTW :-D
Perhaps you should file a complaint with the Better Business Bureau? If this management company is a member of the Chamber of Commerce, perhaps you can get some leverage from them too.
In every state I am aware of you need a Realtors license to be a property management company for a fee. I'd start with a complaint to the state board which licenses realtors.
Them holding the records is a bad thing. Although the management contract apparently calls for a 90 day cancelation clause I would inform the company that I am canceling immediately because of your concerns regarding the mangement of the property. Pay them their fee for the next 2 months if you must but get these guys away from your house.