Hired a Prop Mgmt Company, failed to collect correct deposit amt

[Ryan Esposto]

- Hired a property management company in May 2011 to manage my rental property

- Typical management agreement between me and the company, included clauses saying that 1) they would collect a deposit equal to one month's rent, and 2) repairs over $150 needed my approval

- They found a tenant (someone who worked at the company, in hindsight this was a red flag)

- Settled on a rent of $1300 with a deposit of $1300, this is reflected in a copy of a signed/executed lease agreement that I have in my possession

- Tenant took possession July 1, 2011

Over the next 5 years, there were a few bumps, but nothing completely egregious, e.g. they tried to make me pay for a carpet cleaning in the middle of the tenancy and I pushed back, they refunded. All communication was done over email, including me raising the rent when the tenants renewed after the second year. The prop mgmt company weren't the best communicators, but they were serviceable.

Now the problem:

- In May 2016, I decide I want to sell the house and have the prop mgmt company give a notice of non-renewal to the tenants (lease was up June 30, 2016)

- Tenants move out at end of June. House sells and closes in late July.

- Prop mgmt company informs me there is approx $1100 in cleaning and repairs that they did after the tenants moved out, but that there was only a $400 deposit on file. Prop mgmt company wants a check for me for the difference, $700. (Note that I did not approve any of the repairs and I wasn't notified they were happening nor how much they would cost.)

- I dig in and tell the prop mgmt company that: a) first year lease clearly states that the deposit was $1300, what happened to that money?. b) the management agreement between the company and me clearly states they would collect a deposit of one month's rent unless I approve otherwise (which I never did). c) at no time was I notified that they didn't collect the complete deposit nor that the deposit amount was changed.

- Turns out that on the first two leases the deposit amount is $1300 and $1400, and I have copies of those. But they didn't send me copies of leases after that, and either the 4th or 5th year renewal the lease agreement changed the deposit to $400.

- But again, I was never informed of the deposit amount change nor was my approval requested.

The company is chasing after the former tenants for the money, but they sound like deadbeats, so I assume the company will come after me when the former tenants don't pay.

Anything I can do right now to prevent this from happening? I've already emphatically stated my case via email to the company -- I asked them why the tenants were allowed to take possession in 2011 if they hadn't paid the deposit, and why I was never asked about changing the deposit amount.