NC Property Manager isn't paying Landlord rent collected

[Zach Gordon]

I am a out of state owner and had a very bad property manager in NC that has since been replaced for a small 4 unit building. They didn't collect rent timely, didn't charge for late payments, didn't evict non-paying tenant, let the property run into disrepair, etc..  All of that is bad, but nothing illegal.

I have received their ledger that shows when rent was actually paid and noticed that the Property Manager has withheld money that they have collected. 

I settled on the Property on August 24th, and rent for the August Period wasn't collected until August 29th or September. I believe that even though the rent was for the Aug 1st to August 30th time period, it was collected after I owned the property so it should be mine. There is nothing in the sales contract that say's how past due rent should be handled. There are also funds that were collected months into ownership that were not sent to me.

Has anyone experienced a situation like this from a property manager and how was it handled? I have requested the funds I am entitled to, but doesn't sound like they are going to pay.

If I get an attorney, am I able to go after them for pain and suffering and have them pay my legal fee's if I win? Does anyone have a good recommendation for an attorney in the Concorde NC area that will be able to assist.

Thanks

zach

[Chris Martin]

It's hard to know to answer without all the details.

Your third paragraph seems to say you just bought the property in August. The standard purchase contract state how to prorate rent in 7.(d). You should be entitled to rent from August 24 forward, but the contract should have detailed how accounts are handled if not current and you didn't use the standard form.

Are you out more than $10,000? If so, file with NC REC. If not, file in small claims. Regarding "If I get an attorney, am I able to go after them for pain and suffering and have them pay my legal fee's if I win?" You can try anything, but I've never seen that in NC small claims. You may get legal fees paid if you win. Depends on the judge.

Most property managers in NC use a standard management agreement like NC Realtor Form 401. A Property Manager may withhold money that they collect depending on the agreement, specifically page 2, Item 5(i) describing an escrow fund. With limited information, I am speculating.

Not sure how much you were out. Brokers take a REC complaint seriously. That's the best process to take, IMO.  That's the path I've taken when amounts are > $5K. Less than that, it may not be worth your time.

[Account Closed]

What "pain"?  What "suffering"?