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MShore Law
MShore Law, Attorney
Category: Business Law
Satisfied Customers: 25285
Experience:  Drafted Negotiated and/or Reviewed Thousands of Commercial Agreements
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So I pay a property management company to manage two rental

Customer Question

So I pay a property management company to manage two rental homes I own. This company transferred my lease to a new company and the new company has been mismanaging my property even to the point of fraudulent charges without reimbursement. I SENT THEM A LETTER OF TERMINATION, based on their mismanagement and now they will not release my rental disbursements for 60 days. This will create a financial burden on me and possible make me late or put me behind in mortgage payments. They owe me a months rent, back fees from fraudulent charges and a previous tenant's back payments........can the management company do this, it is not written in our agreement "contract" I want to take action!
Submitted: 4 years ago.
Category: Business Law
Expert:  MShore Law replied 4 years ago.
Thank you for the post, I am happy to assist you by answering your questions. Does your agreement with the management company grant it the right to withhold the months' rent as it is doing?
Customer: replied 4 years ago.

nothing in the contract specifies this........they stated they are holding all the funds in case a maintenance issue arises in the last 30 days of their management.....however they do not keep a petty cash or slush fund for repairs, I always have to authorize and then pay after the fact?

Customer: replied 4 years ago.

I believe they are trying to bully me over the holidays to stay with them......I can see keeping $500 as a what if but all $3500 that is not right, this may cause financial problems that I would take action on if I have a case.

Expert:  MShore Law replied 4 years ago.
Thank you Josh, they are not legally entitled to retain the rents held, you have a valid claim to sue the management company for breach of contract and breach of good faith and fair dealing, claiming compensatory damages and punitive damages for the breach of fiduciary duty.
Expert:  MShore Law replied 4 years ago.
Josh, do you have any follow up questions?