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I have four properties in TX. We switched property managers

Customer Question
in November. It is now...
I have four properties in TX. We switched property managers in November. It is now Febuary and we have these issues:

1.)We have not received the deposits on all four properties
2.)We had one vacancy happen at the same time. The property manager has claimed to do some work on the property station our deposit is totally gone. We have not received a report of what was done and the receipts for the money spent.
3.)Our PM has kept the last months rent for one of our properties stating they owe him thousands in late fees.
4.)We have not received an end of the year statement from him for any of our properties. I can not do my taxes without this.

WHat do I do?
Submitted: 6 years ago.Category: Real Estate Law
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2/7/2011
Real Estate Lawyer: Attorney & Mediator, Lawyer replied 6 years ago
Attorney & Mediator
Category: Real Estate Law
Satisfied Customers: 20,012
Experience: Lawyer,Former Broker and Just Answer Legal Mentor
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Sorry to hear what you are going through. What controls here is the written agreement you have with the property manager regarding their terms of service. If they are in violation of those terms, then they are liable under a breach of contract, which gives you the right to file a suit against them. The other option would be to file a complaint with the TX Department of Real Estate which regulates the conduct of property managers who are licensed real estate brokers/agents. Lastly before you decide to take these options you can demand in writing to enforce the terms of agreement they are in breach. You can give them a deadline for compliance and place them on notice of your rights to file suit or complain if there is no compliance. Typically this may help seek the cooperation you need.


http://www.trec.state.tx.us/complaintsconsumer/complaint_instructions.asp






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Customer reply replied 6 years ago
This is our problem is there is no contract. We signed a contract with his grandma(A totally different property management company) five years ago. 3 years ago he asked us to switch to his property management company I said yes and then he went to his grandma and got the leases and keys... We never signed another contract.

Is there a way I can handle this myself if he does not reply to email, text, or messages or should I pursue legal council?

Real Estate Lawyer: Attorney & Mediator, Lawyer replied 6 years ago
That is a problem. Without a written contract the court would look at what is reasonable under the circumstances. The better thing to do now is to enter in a written agreement. If they don't wish to enter into a written agreement, you have the right to terminate the relationship. It would be great if you can do this face to face. If that is not possible, a local attorney should be used to work out the terms.

In addition, without anything in writing he does not have the right to keep any fees. Further he is obligated to provide you with all written documents regarding the property and maintenance. Again you can make a written demand (by registered and certified mail, keep a copy) and give a deadline (say 15 days for compliance). If there is no cooperation then seek counsel to represent your interests.









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Please Note: JustAnswer.com is a public forum. JustAnswer.com is not a law firm. JustAnswer.com is only a question and answer site. Asking a question does not create an attorney-client relationship nor is your question protected under the attorney-client privilege. An attorney-client relationship is established when you enter into written contract for representation and pay a retainer directly with the attorney or attorney’s firm.

JustAnswer.com uses the term “Expert”. I do not hold myself as an expert when I answer your questions. The information given by me is not legal advice. I am not establishing an attorney-client relationship with you. I am providing only research, resources and information only for you to be informed and educated about your particular needs and my answer is limited to the facts presented. You are only paying me for such information given.

My answer or reply is limited to your facts presented and additional information you post may not come in after my reply or answer has posted, if this has occurred please let me know and I will answer further. Due to site tech reasons, oftentimes I am initially only able to see the first part of your post, so this may result in more interactions between us. There might also be a delay in my reply or answers, as I may be helping other customers, or called away from my office or have logged off. Please be assured your question(s) will be answered promptly.

If I have been helpful, please click Accept for my time and research, this is the only way I get paid. If you need more help or clarification, please click reply. Positive Feedback is greatly appreciated and reciprocated. Feedback should relate to customer service and not about the law, which I have no control over. You can always request me through my profile here or beginning your question with “AttentionCustomerrdquo; Thank you.

Attorney & Mediator
Category: Real Estate Law
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Customer reply replied 6 years ago
We have a contract with the property manager and it clearly states in there that he has to return the deposits. He is not returning them. My question is what do I do now? Do I have to contact a lawyer or is there another step first. It is around $5000 in deposits am I going to spend more on a lawyer to get those back?
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