All Forum Posts by: Norman Dean

Hello Everyone,

I am in need of recommendations for a reputable Colorado real estate attorney or legal counsel experienced in dealing with disputes involving property management companies. We have recently had to fire a property management company and are dealing with a mountain of issues.  Most notably they are holding our tenants security deposit and not turning it over to our new management company. 

Here’s a brief overview of the situation:

False Maintenance and Repair Charges: The property management company has charged us thousands of dollars for maintenance and repairs that were never performed. We have documented proof, including photographs, showing that the work they claimed to have completed was not done.  They are now continuing to hold our last months check and pre-deposited maintenance funds.  In addition, they are claiming charges over $1,000 all of which were unapproved by us and specifically called out in our management agreement that anything over $500 is not allowed without approval from us.

Up charging and Double Charging: We have been subjected to inflated charges for basic services and have identified multiple instances of double billing.  They appear to use the same vendor for just about every invoice they are claiming.  Things as simple as home cleaning fees are close to $2,000.  Annual Furnace maintenance approaching $1,000.  

Security Deposit Issues: Despite providing a 30-day notice, as specified in our contract, the company has failed to transfer the security deposit of our current tenants to our new property management company, which is a breach of our agreement and likely state regulations.

Lack of Cooperation: Our new property management company has faced significant challenges in getting responses and cooperation from the previous management company.  They have not returned their calls for the security deposit status nor turned over a number of information needed to properly manage the property.

Ethical Concerns: We have substantial ethical concerns regarding promises made by the company that have not been fulfilled.  We have outright been lied to on numerous occasions about work that was performed.  We believe there may be issues related to kickbacks or other unethical business practices involving service providers.  I would even go as far as outright fraud is possible.

We have spoken with other landlords who have experienced similar issues with this company. Additionally, there are numerous BBB filings against them, and we have attempted to resolve these issues through the BBB.

Currently, we are looking for legal assistance to draft a demand letter that may help us gain more traction with the property management company. If anyone has recommendations for a skilled attorney or legal counsel in Colorado who can assist us with this matter, we would greatly appreciate it.  I would also just like to find out what other legal avenues we have to try and get some of our funds back from this company.

Thank you in advance for your help!

Best regards,

Wes Dean

I have very recently had to give my property manager notice that his company will no longer be managing my properties.  He did not take it well and of coarse tried to talk me out of it, however I ensured him my mind was made up.  I formally submitted the Texas Realtor Association's Management Termination form to him, giving him 30days notice, but asking him to agree to let me move on earlier.  I have not heard from him in almost a week now in regards to this, wont answer my phones calls, emails, and his office will not return my calls.  We have a tenant that is up for renewal in 5 days and I am concerned he will do something to jeopardize this or not follow through.  Should I contact our tenants directly to let them know of the change?  Or at least contact the one up for renewal?  Should I get the tenant to sign a renewal just with myself and not the current property management company or is this a violation of our management agreement?

I am very concerned with rent collection and other pending issues now that our property manager is MIA and obviously upset over the firing.

Any advice experience investors could give me would be a huge help.

Thanks very much!

@Joe Saldana if you know what neighborhoods or areas you are looking in, I would be happy to set you up with some MLS alerts. We can make the emails as aggressive as you want, up to knowing an hour after a house comes on the market.

Hey there Milton!  Welcome!

Love the New Braunfels area, but wish you all the best in the panhandle.

Thank you all!  Glad to meet you!  Especially fellow Texans :)

Thanks Guys!  Glad to be here.  

Thank you for the information Paul.  I will definitely check those out.

Hello!  

My name is Wes and I have been lurking on your forums for a couple of weeks now, but decided to introduce myself and join the discussions!  I have found all the information to be extremely beneficial and have thoroughly enjoyed learning many aspects of the real estate business here so far.  I am new to the real estate investing world and have only been thinking of becoming an investor for a few months now.  I have done my fair share of research including reading as many books as I can get my hands on, listening to podcasts, and have even taken a couple of investing classes at the local college.  I currently work for a large defense contractor doing IT Systems Administration work.  I realized a couple of years ago that even at the age of 32, I did not want to be stuck in the rat race for the rest of my life.  This is what has me so interested in Real Estate.  I realized after reading a book "Rich Dad Poor Dad", that I should really concentrate my efforts on unearned income and feel real estate is a great vehicle for passive income.  My current goal is to buy my first investment property this year, by the end of 2015.  I will be seeking to acquire at least one investment property per year and using the buy/hold method to grow my net worth.   I am currently on the search for my first investment property, a Multifamily with four units or less.  My long term goal is to match or better my current earned income and get out of my 8-5 before the age of 45.  Just a month ago I started working on getting my real estate license after attending a college class thought by a local investor.  She told me quite a few investors have them and it really is a great asset even if you do not plan to be an agent full time.  I am now on my last class and will hopefully by taking my exam by the middle of next month.

I look forward to learning and meeting many great investors here.  See you around!

-Wes