Property manager omits to have received money in the own statemnt

[Edmond Dantes]

October 2020

I have purchased a single family home in Ohio with a cash offer. The realtor who helped me in the purchasing process has recommended the title company, moreover the realtor has made a small rehab for $1,500.

December 2020

The home was rented in the first days of December and it was managed from the realtor's wife through a property management company. A few days after the purchase of the home, I sent a wire transfer to the property manager account in order to pay the annual premium of my home insurance.

January 2021

I asked my property manager to pay my half annual property tax of about $2,000, she accepted and paid with a check on 26 January 2021. The amount of $2,000 it included a delinquent tax of about $1,000, unpaid by the previous owner.

March 2021

I contacted my property manager because the property tax was unpaid. She thought there was a problem with the County closed to Covid for months and running behind on all functions including processing these tax payments. The day after, I contacted the County Treasury Office and they told me that the Treasury returned the $2,000 check to my property manager 18 February 2021 and parcel in Foreclosure. They required a Cashiers Check for payment. After a few days, my property manager has paid about $3,000 for the annual property tax with a Cashiers Check. The amount of $3,000 it included a delinquent tax of about $1,000, unpaid by the previous owner + $92 penalties for my late payment

April 2021

The Judge dismisses the Foreclosure and the title company has accepted to refund me $1,000 for the delinquent taxes of the previous owner.

What's the matter with my property manager?

On the owner statement december 2020-april 2021, the property manager has omitted:

1) $2,000 for the property tax returned check from the County

2) $540 related to my bank wire transfer send to property manager banking account in order to pay my homeowner insurance

Due to these omissions, the ending bank balance is negative for about 1,300$ but I I'm sure that it turns out to be an "Ending Bank Balance" of about + $1,200

I have the copy of my $500 bank wire transfer and the proof of the $2,000 Check returned from the Treasury County Office to my property manager.

I have sent an email to my property manager showing all these but she has not answered me.

What should I do?
What should I do if my property manager will continue to don't answer me and/or if she denies to have received the check from the County and my wire transfer?
Should I hire a lawyer and report my property manager or her management company and find another property management company?

Let me your opinions please

Thanks

[Will Fraser]

Hi @Edmond Dantes, i'm sorry to hear of your troubles here!

I would try as gently as possible to walk the manager through the missing funds and try to reconcile those, then part ways as soon as possible.

I would also HIGHLY recommend changing the way you operate with regards to taxes and insurance payments.  It could be the case that the PM recommended this, but your story so far is a perfect illustration why you as the owner should be responsible for those payments.  

In general the powderkeg that exists here is that your PM has a VERY complicated operation, created by the way they are structuring the business.  Unless they are using some costly tools for management it is unlikely they are tracking a bizarre in-and-out-and-in-flow like this with any ease.  Add to it that they likely have several properties under management and my mind spins thinking of their operation.

I would urge you, for your own benefit, to have a property manager manage your property and, if needed or once you have the right scale, have an asset manager (or a PM that does both but identifies them as separate items with fees for services provided) manage the rest of it (like tax and insurance payments.