Tenants damaged and stole property from our rental property

[Marie Larcom]

Our property manager refused to give us the lease agreement and lied about the tenants damaging our property and stealing our property from our home. Two different tenants lived in our home since 2019 and we had not been to the property until recently. The property manager did not document anything. We have pictures of our property before and after the tenants moved out. The tenants are trying to get their deposit back and we are not giving it back. What are our legal rights? Do we need to price what a new item would cost to replace the damaged property and send the ex tenant the amount to replace what they damaged? Can we take the property manager and tenant to small claims court? Can we file a small claims against the tenant and property manager for not disclosing information to us about our property?

The property manager never would give us a lease agreement. He finally did a month after the tenants left. tenants are demanding their deposit back. The tenants said they could take our property because the property manager did not list all the property in the home. The tenants said they could damage the property and remove whatever they wanted to because an itizemed list of our furniture was not In the lease agreement, our lease agreement stated they could not remove anything. We gave a list to the property manager and he did not include it in the lease agreement. We told the property manager no pets on our property or in our home and the property manager put in the lease agreement they could have pets with a $300 deposit.

[Nathan Gesner]

Quote from @Marie Larcom:

1. You should fire them. I'll include some tips at the end on how you can search for a new manager.

2. They are negligent for not tracking your personal property and I believe they are liable for the losses.

3. The PM has a fiduciary responsibility to you, not the Tenant, yet it seems they are doing everything to coddle the Tenant instead of protecting you. They allowed items to disappear, they permitted a dog against your explicit wishes. These are violations of their responsibility.

I would start with a simple demand letter. List the ways they violated your agreement or failed to protect you. List the monetary damages and give them 15 days to respond with payment. Let them know that if they fail to respond, or fail to respond to your satisfaction, that you will file a complaint with the Tennessee Real Estate Commission and sue them for damages. Then follow through. Make sure you have everything documented because that determines who wins.

Tennessee Commission: https://www.tn.gov/commerce/re...

FINDING A PROPERTY MANAGER

Remember: cheaper doesn't mean you'll make more money.

Start by going to www.narpm.org to search their directory of managers. These are professionals with additional training and a stricter code of ethics. It's no guarantee but it's a good place to start. You can also search Google and read reviews. Regardless of how you find them, try to interview at least three managers.

1. Ask how many units they manage and how much experience they have. If it's a larger organization, feel free to inquire about their staff qualifications.

2. Review their management agreement. Make sure it explicitly explains the process for termination if you are unhappy with their services, but especially if they violate the terms of your agreement.

3. Understand the fees involved and calculate the total cost for an entire year of management so you can compare the different managers. It may sound nice to pay a 6% management fee but the extra fees can add up to be more than the other company that charges 10% with no additional fees. Fees should be clearly stated in writing, easy to understand, and justifiable. Common fees will include a set-up fee, leasing fee for each turnover or a lease renewal fee, marking up maintenance, retaining late fees, and more. If you ask the manager to justify a fee and he starts hemming and hawing, move on or require them to remove the fee. Don't be afraid to negotiate, particularly if you have a lot of rentals.

4. Review their lease agreement and addenda. Think of all the things that could go wrong and see if the lease addresses them: unauthorized pets or tenants, early termination, security deposit, lease violations, late rent, eviction, lawn maintenance, parking, etc.

5. Don't just read the lease! Ask the manager to explain their process for dealing with maintenance, late rent, evictions, turnover, etc. If they are professional, they can explain this quickly and easily. If they are VERY professional, they will have their processes in writing as verification that policies are enforced equally and fairly by their entire staff.

6. Ask to speak with some of their current owners and current/former tenants. You can also check their reviews online at Google, Facebook, or Yelp. Just remember: most negative reviews are written by problematic tenants. The fact that a tenant is complaining online might be an indication the property manager dealt with them properly so be sure to ask the manager for their side of the story.

7. Look at their marketing strategy. Are they doing everything they can to expose properties to the widest possible market? Are their listings detailed with good quality photos? Can they prove how long it takes to rent a vacant property?

This isn't inclusive but should give you a good start. If you have specific questions about property management, I'll be happy to help!