PM moved in tenants without my knowledge and stole money

[Amber Bennett]

I have a day job that requires me to travel a lot and parents that I care for on California. I own 3 properties in Baltimore that were supposed to be renovated to make them ready to lease and pass inspections to obtain rental licenses (which the city requires). The whole while I thought the properties were being renovated, this PM had moved in tenants and had been collecting money and didn't make any of the repairs I paid him to make. 

Once he caught wind that I found out, he immediately called and started backpedaling saying he didn't tell me about the tenants because he didn't want to bother me with the headache and that all the money was in escrow (yeah right...). Anyhow, what recourse do I have at this point? Two of the tenants are cooperative, but one of completely unresponsive at this point. Thoughts?

Thanks!

[Patricia Steiner]

It's called grand theft.  There are plenty of news stories of property managers who stole rent money from their clients and they all end the same way:  arrest, jail, restitution.  I would call the police and file charges.  Rent money in escrow?  Geez, he is stupid.  I would also decide what to do with the tenants...if you elect to move forward with them, you'll want to screen them and execute contracts as the owner/landlord.  Please consider filing a police report so you're on record that whatever happened up to this point was not at your direction - and let the police interview your tenants so their engagement with him is documented. 

Protect yourself first by involving the police and documenting the theft.  I'm sorry this happened to you - and now is an opportunity to set your reputation in that market as someone who will not be victimized.  Kick butt...