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Updated over 1 year ago on . Most recent reply

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Nad Oli
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Helping my tenants sue their previous management company , suing the seller.

Nad Oli
Posted

Hello,

I am seeking help with a situation involving my tenants and their previous management company. I recently purchased a duplex, and the previous owner had employed a property management company. One of the apartments was rented out with tenants. However, after the sale, I did not receive the prorated rent payment, leading us to believe it was an oversight on the tenants' part. Once the second month started, we issued them a late payment notice for both months. We also provided them with a new contract, which they did not sign. This led to an argument as they claimed ownership of the appliances in the house, despite the bill of sale showing me as the owner.

Upon further discussion, it came to light that the property management company failed to inform the tenants about the sale and the change in ownership. They were instructed not to pay the rent. Additionally, my tenants have provided evidence that the appliances are indeed their possessions. It appears that they replaced the appliances themselves after they broke down, and the property management company did not provide replacements.

As for my situation, I would like guidance on whether I should consider suing the seller, either through private or small claims court. Regarding my tenants, I would appreciate advice on how they can pursue legal action against the property management company.

After conversing with my tenants, I have come to realize that they are genuinely good people, and I want to ensure they are not taken advantage of.

Thank you for any assistance you can provide on how to proceed in this matter.

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Nathan Gesner
  • Real Estate Broker
  • Cody, WY
41,235
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Nathan Gesner
  • Real Estate Broker
  • Cody, WY
ModeratorReplied
Quote from @Nad Oli:

Before you starting threatening to sue, you should at least have a conversation with the Seller and the Property Management company. Some of this doesn't add up.

More than one appliance broke during their tenancy and they replaced them out of pocket? 

Did the owner/PM refuse to replace the appliances? Were they even aware that the appliances broke? Did anyone investigate to see if they could be repaired or if they were abused/neglected?

Have you asked the PM and Owner if they notified the Tenant of the pending sale?

Why didn't you inspect the property before buying? Why didn't you talk to the Tenants before buying? You signed a contract to buy a property with appliances, but you didn't even look at the property to see if the appliances existed?

I recommend you start by talking with the Seller or PM to get their side of the story. Your Tenant could be playing you like a fiddle.

  • Nathan Gesner
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