What happens to the rents paid by the tenant when PM company goes out of business?

[Akshay Wattal]

Hi all,

The owner of the property management company managing by rental unfortunately passed away a month back. Their attorney had reached out and mentioned that the company was out of business. The tenant had prepaid the rents and we were able to find all the documentation and shared that with their attorney today. Question is what happens to the money now and what are my options to recoup the money? Thanks for the guidance!

[Tom Gimer]

The company may be going out of business because the broker/owner is dead, but it is likely an entity which has to wind up its affairs, including marshaling assets such as receivables from other contracts. If it made financial sense I would hire a collection attorney and attach those receivables.