Residential Property Management/Firing Property Manager

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Question
Unfortunately we are using a property manager who in the last four years has failed to pay our real estate taxes and mortgage on time resulting in just over $10k in interest, penalties and fees.  She is currently renting one of our units for her office.  I have several questions:
1) What is the best way to try to recover those funds from her?
2) Should we fire her before we try to recover the funds owed?
3) Once we find a different PM what is the best way to make the transition?

Thank you for your time.

Tony

Answer
Tony,

1.   You should first issue a demand letter stating the reason you feel she is responsible, and the amounts you feel are owed. I have to say that it would be odd that a PM would fail to make those payments unless adequate funds aren't available. But if the necessary funds were in place and she simply failed to make those payments, then you may have a valid position. If you cannot settle with her, then you'll need to take the matter to court.

2.   Probably not an issue, but see #3 below.

3.   It might be a better approach to make the transition first, and then approach the former PM regarding the claim. This could help ensure that the records and remaining funds on hand are transferred to the new management company with the least amount of hassle.

Best of luck!

Residential Property Management

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Mike Fortunato

Expertise

Very familiar with all aspects of property management (tenant/landlord issues, lease administration, facilities maintenance, financials, etc). 25+ years in property management

Experience

I have been in real estate management for 25+ years, both residential and commercial properties. Currently own and operate a commercial and residential real estate management company in southern California.

Organizations
IREM; BOMA; MLS; National Association of Realtors; California Association of Realtors

Education/Credentials
CPM (Certified Property Manager) and RPA (Real Property Administrator)

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