All Forum Posts by: Karyn C.

Thanks for the input guys. I am frustrated about the fact that the softener was removed without my permission and that the manager never bothered to tell me about it.  However, I've decided to take your advice and we expect to have the new softener in tomorrow.  

Hi, I'm hoping someone might be able help me to untangle this situation.  I recently fired my out of state property manager because she was abusing her position by placing her personal friends in our property (unbeknownst to us) and giving them breaks on the rent at our expense as well as allowing them to move four more people into the house who are not on the lease.  Now I am left to manage the property myself from a distance until I find the right management company to replace her.  The problem I'm having now is that the water softener which was kept in the garage at the property was apparently leaking and for some reason the tenants removed it and put it outside in the desert heat to rot.  The tenants claim that it went out more than three months ago and that they told our manager about it several times, but that she didn't do anything about it.  The manager says that it wasn't three months ago that it was only two months ago and that she had told them to drain the softener and turn it off but she says that she never told them to remove it.  She never informed me of the problem at all.  Now my question is who is financially responsible for this problem?  

Thank you Deanna.  I really appreciate your help and I will definitely be taking your advice.  So in the future if I use another property management company, do you suggest that I insist that my name be on the trust account or would it be better if I have my own trust account set up so that all monies coming in and out come directly to me?  

Oh no, sorry, I misunderstood!  The manager (ex) of our property has a trust account that the money she is entrusted with is held in.  She is the employing broker so assuming that she set up the trust account she must be the trustor and probably also the trustee if she named herself as such.  She has said to me that no one has access to her account except her so I presume that she is the beneficiary of the trust as well... (right?)  Sorry, I'm new to trusts.  Maybe you can clarify some of this for me.  

 Thanks you guys for your help. 

Yes, I am the beneficiary of the trust along with my husband. The PM is the trustee.

I've just returned from making a trip out to the property.  The property itself looks fine after a brief walk through, but I also discovered more people living in the house that are not on the lease, another thing our PM failed to disclose.  I received the check paid to the order of the tenants ( and me) after returning home so I'd need to make another trip out there if I were to ask the tenants for their endorsement of the check.  I don't want to have to do that, but I will if necessary.  Thanks for your advice.  I will surely be contacting ADRE!

    Hi everyone.  I am new to Bigger Pockets, but I was hoping you might have some advice for me...  I have a situation where I recently fired my PM in Arizona, because she was taking advantage of the fact that we live in another state from the property and stealing rent money from us.  Now since the contract is cancelled, according to our PM Agreement she needs to turn the tenants security deposit over to us the owners. But, the problem is that security deposit check she sent me was actually made out payable to the tenants  as well as me!  Now in order for me to deposit the check in the bank I actually need the endorsement of the tenants as well! 

If this was another PM I might assume that maybe there was a mistake made, but this woman has really exhibited some bizarre and underhanded behavior for awhile now. I've even have suspicions that she is actually living in the property herself. (I came to this conclusion because I received violation notices from the property's HOA regarding tenants parking violations with pictures of what appeared to be her vehicle parked in the driveway!) She regularly makes excuses for the tenants whether it's showing up to defend them to the HOA, making excuses for their late rent (they had id theft, laid up in the hospital, the check got lost in the mail etc.), and not charging them the late fees as agreed on in the contract.

  The security deposit check written in their names is further proof that if if she is not actually living in the house that someone very close to her is and she is cutting them deal after deal at our expense.  Now, my concern is that she may actually have converted the trust money for her own use and may not have the funds available.  Do any of you have any advice about how best to handle this? What should I do about this check? What are my options legally if we do find that she has been living in the house and undermining and stealing from us instead of upholding her fiduciary responsibilities?  Thanks for the help all. I really appreciate it.