Property manager keeping my rent

[VAL A.]

I'm managing my daughter's condo in another state for her.   I hired someone thru a referral to oversee two properties at $200 per month.  Issue with the condo, tenant late for past 4 months and resulted in court papers being filed in Feb for eviction, Notice to Pay or Quit just served one week ago.  Tenant to bring all past due current by the 1st of May.

Issue is that the person I hired (not a formal property management company) has now collected money from the tenant as of last week...and had the tenant make the money order payable to "him" instead of my dau as the lease calls for.  A week has passed and the PM has not placed any money in my daus account.   He diverted these funds claiming he's owed money for work and charges in connection with court filing that I've never seen  receipts or proof of.   What is my legal recourse here?  He was only given authority to meet with the tenant, serve papers, and receive monies payable to my daughter----not to divert funds to himself.    

[Max T.]

Oh no!

Sounds like you may have to take him to court. Demand documentation of what he claims you owe him while letting him know you are pursuing legal action, absent his cooperation.

A letter from an attorney can be very persuasive.

Oh and make sure to clearly terminate your management agreement if you haven't yet. Change locks, inform tenants not to engage with him, and hire professional management.