Property Manager Not Disbursing Funds/Continuing to Collect Rent

[Sunitha Rao]

Hey everyone,

Would love to get some insight/guidance regarding a current issue.

I chose to not renew a contract with one of my property managers and notified him in late March, with the contract effectively ending at the end of April. When speaking with him in April, he agreed to send over the security deposits and cash reserves he was holding, as well as the tenant leases and contact info. Our last conversation was close to a month ago, and I have yet to receive anything and he also has not been responsive, despite multiple emails and phone calls. On top of this - one of my tenants was out of town and without her contact information, my new property manager was unable to inform her that management of the property had transferred, so the tenant paid my old property manager for May. 

Trying to understand what my options are in order to collect - I know that I can file a complaint with the AG but I’m currently more focused on collecting what is owed to me, as it is to the tune of a few thousand.

If it matters (for small claims court, etc) - my property is in Noblesville, Indiana while the PM seems to be incorporated in Indianapolis.

Thanks everyone!

[Todd Burton]

@Sunitha Rao

Sorry you're having to deal with this. Here are a couple of other suggestions to bring pressure to encourage payment. The threat of these may help bring resolution. 

Since they are managing for 3rd party individuals or companies they are required to be licensed in the state of Indiana. Hopefully, this will be resolved without too much more trouble but if it is not, assuming they are a properly licensed Broker, you can file a complaint with the Indiana Professional Licensing Agency. Here is a link to check their licensing. If they are licensed there is also a high probability they are members of MIBOR (Metropolitan Indianapolis Board of REALTORS). If they are members you can also file an Ethics Complaint against them. Here is the link to search for MIBOR members. 

If they are not licensed, it is illegal for them to manage 3rd party properties and they should immediately be reported to the Indiana Attorney General.