Is Landlord Responsible For Check BOUNCED AFTER Cashed?

[Hanna J.]

Hi all, I'd like to see your advice on my very weird situation with my ex-property manager in Chicago- Get Cashflow Today. They just sent my account to collection agency, asking me to pay the bounced check happened in July 2018.

I worked with them about a year on my Oak Lawn property and they've been collecting checks and disbursing funds to me. Tenant left in July 2018 and I sold this property through a Realtor referred by this PM in Nov. 2018. I paid all the balance due before closing the sale transaction obviously.

In December 2018, Get Cashflow Today contacted me and asked me to pay them $2700 for the bounced check  from the tenant back in July 2018! PM claims that I have their money because check was bounced. 

First off, I don't understand how checks can be cleared at first and then bounced? Is this possible in Illinois? If this logic makes sense, any property owners can be responsible for the "bounced checks" months or years after they are collected and disbursed?

Second of all, Why on earth PM waited for 6 months to notify me? I am pissed that they think I should be responsible for their mismanagement.

Please share your opinions and advices on how I should response to this matter...

[Marcia Maynard]

• Did the PM contact you about this matter at any point prior to the collection agency contacting you?
• Why was the tenant not held responsible for the bounced check? 
• What did the PM do to attempt to get the funds repaid by the tenant? 
• Why didn't the PM keep you informed along the way?
• Why is it the collection agency is going after you instead of the tenant?
• What does your contract with the PM say?

If you are in the same town as the property management company, I would respectfully ask for a face-to-face meeting with the owner of the company and a review of the books. If you are at a distance, see if you can video conference. An attempt should be made to sort this out between you and the property management company. You can't ignore this, as your credit is on the line since the PM sent this to collections with you as the debtor. I would also contact the collection agency to keep them informed about what is going on. You need to sort this out before they contact the credit bureaus and make a bad mark against your credit.

I'm not in the property management business, but @Nathan Gesner is. Perhaps he can shed more light.