Property Maanger stole my money - Tenant deposits and one month rent

[Saurabh Patel]

My current property manager in San Antonio suddenly ghosted me. He is nowhere to be found. Boker is no longer sponsoring him. I want to understand what are my options to collect tenants deposits and one month rent. 

[Theresa Harris]

Is the PM an individual that works for a larger organization or their own independent business (eg like a realtor who works with a group of people at an office)?  The fact that you mentioned broker, suggests that it is an individual at a business.  If that is the case, the broker should be responsible.  The money should be held in trust.  What did the broker suggest you do?

Either way they should be licensed, contact the board and report them.  I'd also directly contact the tenant to see if they have heard from the PM and let them know to directly pay the rent to you for Nov.  The broker can contact them to let them know that you are the owner.

[Michael Smythe]

@Saurabh Patel most important - take control of your property and the tenant!

Either have them start sending you their rent or find a new PMC ASAP.

Once you have that issue resolved, you can focus on any missing rents and security deposit.

When did the broker stop sponsoring your PM? 
- Broker may be trying to protect themself, so don't believe what they claim without proof. If they discontinued their business relationship, the broker would have had to inform some state agency. They should be able to give you this proof.

You still may have a claim against the broker as they were responsible for the security deposit and rental funds up to the date of sponsorship termination. Their E&O insurance should cover this.

You may need to file something with the local or state Board of Realtors and attorney general.

[Adam Bartomeo]

Normally, the broker is responsible for all actions taken by their agents and property managers. I would put pressure on them.

[Saurabh Patel]

Thank you all for the response and guidance. Yes I have communicated to the tenant about the scenario and started collecting the rent directly. Already in the process of placing a new PM. Now that I understand "what I can do" better from your comments I am going to start filing a complain with the state Board of Realtors to put pressure on the broker. Will keep you all posted on how this goes. 

[Melanie Thomas]

Hi Saurabh, I’m really sorry to hear you're dealing with a frustrating property management company. Reaching out to the broker and filing a complaint with the board is definitely the right move. As a broker myself, I know we're responsible for our agents’ actions and would help make things right. There are some fantastic property management companies in the San Antonio area, so take your time and research the ones that focus on property management full time—not as a side gig or a stepping stone for sales. That really makes a difference. Best of luck, and happy investing!

[Jack Deer]

 No 'may' about it. Broker will end up paying, if Saurabh Patel plays his cards right.