Autumn Property Mgmt Bankruptcy

[Lisa T.]

Received notice in mail yesterday that Autumn Property Management has filed bankruptcy.

We were contracted with her for less than 60 days after Strategy Properties dumped all their clients over to her without permission and no notice to clients. It took me some time to find another PM.  So she only managed our properties for under 60 days but still owes us money.

We'll file the legal paperwork for the bankruptcy but likely pennies on the dollar will result, if at all.  

Anyone in similar position?  I know it was pretty popular with Real Wealth Network pushing Strategy Properties in Detroit.  I understand Ali Boone has now partnered with Strategy Properties. IMHO, big mistake and will affect her reputation with her investors in the end just like it did RWN.  

We finally have our Detroit properties running smoothly.  Found a solid, no nonsense PM.  Big and expensive lesson learned.  

[Lisa T.]

Last month we also received an official legal notice that Autumn has filed bankruptcy.

We were caught up in the debacle when Strategy Properties dumped all their PM clients on Autumn a couple years ago. We immediately changed to RPM but moved again within that first year due to poor RPM management.

We have been with Tradewinds for 3 years and Scott has managed our properties well. He has a number of old Strategy, RPM and Autumn clients so is experienced now dealing with the problems during transition.

I suspect we recd the legal notice because we're still trying to get security deposits owed us from Autumn. Strategy transferred them to her without our permission.

I'd suggest you get a new Property Manager immediately who can connect with your tenants.  If you don't have copies of leases etc. you need to have new PM get those in place right away and have future rent  directed per new leases.  Next, you'll have to figure out what Autumn owes you, both rent and security deposits, and file with the bankruptcy court.  

I am not an attorney but if it was me, I would get your new PM in place immediately and just send a US Mail certified notice to Autumn that you have a new PM effective immediately due to their failure to ..... and include contact information at the new PM office.  (It will probably come back showing delivery attempts, just keep it for your records.)  Let your new PM  guide you what to include -- youll want to ask for sevurity deposits, rent collected and not deposited in your account, leases, tenant rent roll.  New PM will notify your tenants.  I suspect you'll also have to figure out with your new PM how to get the 2023 IRS rent certificates to your tenants by January 31st.

It's ugly but best to take action immediately and try to right the ship.