Property Manager released from contract after tenants moved - BUT

Property Manager released from contract after tenants moved - BUT

Member since 2018 · 9 posts · 1 vote

I'm in Indiana.  I one one property that I've rented out myself for the past 16 years.  This past year, for the first time, I signed a property manager.

I got a text a couple of months ago that due to leaks in the roof, and the ants they can't get figured out, the tenants want out.  Horrified, I agreed.  This was the first I'd heard of these things - the response was that she hadn't wanted to worry me.

The day after the tenants moved out early (3 months early), I drove the 1 1/2 hours to where the property was.  The property had never been raked.  Leaves and sticks up against each side of the house.  The gutters had little trees growing out of them.  Roof full of leaves and sticks.  I spent all day as well as each of my kids, cleaning the neglect.  I took a ton of photos and texted my property manager that I'd like to have a meeting about the neglect of the home.  In the leaf piles I found mounds of ants.  Watched them crawling into the house.  My next trip in, 2 days later, I sprayed.  Never saw them again.  We had 3 days of torrential rains in the past month.  I drove in again to view the leaks that caused them to move out.  After 18 hours of non-stop rain, I finally saw a drip every 30 seconds within the laundry room.

I had quite the conversation with the property manager.  Told her I agreed to the early release of the tenants, only because I assumed that the property had been maintained and that it was a legitimate request.   The property manager got mad, and then ignored my texts for the next week.  She then materialized and requested a mutual release.  I agreed shortly thereafter.

In the meantime, on the interior, the tenants damaged the carpeting that had been BRAND NEW when they moved in.  The property manager said, "what do you expect when you put in Berber"  

We have a strict law here dictating 45 days to return the deposit.  I've asked the manager to send me the deposit 3 times so I can handle this.  She told me no, she would do it and fulfill her obligation.  I pointed out that she was no longer part of the contract and had no obligations as such, that she needed to send it to me.  She is now refusing.  Said she won't give anybody the money until she determines that it is fair.  Fair being that I give her receipts, and that there was no damage, only the carpet.  And this also isn't even true.  She owns her own company, is the only broker there, having only an assistant.

There are 2 weeks left before the 45 days are up, and I'm desperate for guidance:  do I need to write something up and send the remainder of the funds myself?  

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  • Real Estate Professional · Hayfork, CA · Member since 2015 · 231 posts · 212 votes
    8y

    It sounds like you will need to cover the deposit return and statement yourself and also send a demand letter to the former property manager for the deposit funds.  If she won't comply, keep records of everything for a small claims case.

  • Nathan GesnerBusiness Member
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    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    8y

    I think the Property Manager already returned the deposit (or spent it herself) and that's why she won't hand it over.

    I recommend you READ THIS and consider filing a complaint. She is obligated to turn over the funds, the keys, documentation, and other pertinent items upon termination.

    Have you spoken with the tenants to confirm whether the PM charged them a termination fee? Refunded their deposit? I would definitely talk to them and see if she did anything that violates the contract or her obligation to you as the fiduciary.

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  • Member since 2018 · 9 posts · 1 vote
    8y

    Nathan, you are not the fist person who has said she hasn't returned it because she no longer has it.  I have not spoken with the tenants, because their information was kept private from me.  YES, I will absolutely be filing a complaint.  Hopefully the next person will benefit from me having done so.  

    Upon termination of the contract, she turned over the keys.  She is refusing the documentation and the deposit.  Ignored my request for the tenants forwarding address so I could send the letter.  Is there a place in any sort of law or realtor forum or code, or anywhere, that details her obligation to turn these things over to me?

    Yes, I am keeping everything in order to take her to small claims court.  She is almost acting like the tenants agent, not mine.  That is a huge reason I agreed to let her go.  

    Does she have any rights in this process when she asked to be released from the contract and I did so?  I told her she doesn't have selective contractual duties.  She's 100% out.  That hasn't deterred her.  I feel like I've "demanded" the funds and paperwork but have been ignored.  Is it more official, I guess, to send it via certified mail?  I have 16 days exactly to get this letter and funds to the tenant.

  • Richmond, VA · Member since 2016 · 215 posts · 129 votes
    8y
    @Kellie Frantz Not sure what the laws are like where you're at, but it might be worth getting a lawyer involved to issue a demand letter. Especially if you're at risk for triple damages or anything like that.
  • Member since 2018 · 9 posts · 1 vote
    8y

    Is a demand letter something that I can do myself?  

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